Fueled by the ongoing surge in artificial intelligence investments and optimism surrounding a potential peace agreement between the United States and Iran, U.S. stocks closed higher across the board on Wednesday, May 6th, with the S&P 500 and Nasdaq Composite indices both reaching new intraday record highs.
As of the latest update, the Dow Jones Industrial Average had gained approximately 1.2%, reaching 49,864.23 points. The S&P 500 index rose 1.2% to 7,347.84 points, while the Nasdaq Composite index surged 1.7% to 25,749.83 points.
The artificial intelligence boom remained the primary driver of the market's advance. Advanced Micro Devices (AMD) previously issued a second-quarter revenue forecast that surpassed market expectations, largely due to robust demand for data center chips, causing its stock to soar approximately 17% during the session. Other chip stocks followed suit, with Intel rising about 2.7%, and Super Micro Computer surging over 16% following an optimistic fourth-quarter earnings outlook. Alphabet, the parent company of Google, gained about 1.5%, and NVDA 3xLongSG261006 increased around 4%.
On the geopolitical front, market anticipation for a U.S.-Iran peace accord continued to build. Reports indicated that the two nations are nearing a one-page memorandum of understanding, which could pave the way for ending conflict and reopening the Strait of Hormuz. Consequently, international oil prices fell sharply, with Brent crude futures dropping approximately 6.6%, pressuring the energy sector, which declined about 3%.
Regarding economic data, U.S. ADP private sector employment increased by 109,000 jobs in April, marking the largest monthly gain since January 2025, further bolstering market confidence in a soft economic landing.
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