Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, Wednesday (local time). AFP-Yonhap
The S&P 500 and the Nasdaq surged to record-high closes on Wednesday, buoyed by signs of a resolution in the Middle East conflict, while strong earnings from Advanced Micro Devices sparked a rally in chipmakers and other AI-related stocks.
Advanced Micro Devices soared almost 19 percent to an all-time high after forecasting quarterly revenue above expectations on robust demand for its data center chips.
Shares of rival Intel gained 4.5 percent, while the PHLX chip index rallied 4.5 percent, bringing its 2026 gain to 62 percent.
Global stocks surged and oil prices slumped after Iran said it was reviewing a new U.S. proposal, while sources said Washington and Tehran were closing in on a one-page memorandum to end the war, while leaving tricky issues such as Iran's nuclear program for later.
Brent crude futures fell about 8 percent to $101 a barrel, helping ease concerns about inflationary pressures.
Wall Street has surged in recent weeks, with investors looking beyond the Middle East conflict and instead focusing on a strong first-quarter earnings season that has been driven by AI-related companies.
S&P 500 companies are on track for their strongest profit growth in more than four years. Over 80 percent of S&P 500 companies that reported through May 1 have exceeded analysts' profit estimates, according to LSEG I/B/E/S data.
"The economy is chugging along just fine. There's no real danger signs of something that's even close to approaching a downturn. And so with that as a backdrop, you have to own stocks," said Thomas Martin, senior portfolio manager at Globalt Investments.
Corning surged after saying it was partnering with Nvidia to expand U.S. production of optical connectivity products used in AI data centers. Nvidia climbed 5.7 percent.
Source: Korea Times News
