The S&P 500 (^GSPC +0.37%) rose 1.46% to 7,365.12, the Nasdaq Composite (^IXIC +0.19%) jumped 2.02% to 25,838.94, and the Dow Jones Industrial Average (^DJI +0.58%) gained 1.24% to 49,910.59 as tumbling oil and AI strength lifted major indexes.
Market movers
Advanced Micro Devices (AMD +4.09%) surged more than 18% after a blowout AI-driven quarter and outlook, while Micron Technology (MU 1.23%) extended its gains, taking its market cap to over $750 billion. Corning (GLW +1.02%) jumped on a $500 million AI-infrastructure deal with Nvidia (NVDA 1.86%). Disney (DIS 0.56%) advanced on better-than-expected streaming- and parks-led results.
What this means for investors
Artificial intelligence (AI) demand and oil prices again drove markets today, Wednesday. Major indexes reached record highs on easing U.S.-Iran concerns and chip-driven optimism. WTI crude fell about 7% to close at $95 a barrel as hopes that the two sides might agree on a plan to reopen the Strait of Hormuz eased energy pressures.
The increased risk appetite buoyed semiconductor stocks, helped by AMD’s strong forecast and results. AMD isn’t alone: Some analysts predict this S&P 500 quarterly earnings season will be the strongest since 2021, despite conflict concerns. The S&P 500 has gained almost 8% so far this year, and the Nasdaq is up over 11%.
However, there are also correction fears, with commentators drawing parallels with the dot-com bubble and looking for confirmation that the soft-landing narrative remains intact. For investors, cautious optimism continues to reign.
Emma Newbery has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Corning, Micron Technology, Nvidia, and Walt Disney. The Motley Fool has a disclosure policy.