Nasdaq, S&P 500 close at all-time highs on strong AI momentum

4:15pm: Chip stocks lead rally

Both the S&P 500 and Nasdaq set new all-time closing highs, as US stocks extended their rally on strong tech momentum and improving geopolitical sentiment.

The S&P 500 climbed 1.5% to 7,365, while the Nasdaq rose 2% to 25,839. The Dow Jones added 612 points, or 1.2%, finishing at 49,911.

The advance was led by continued enthusiasm around artificial intelligence, alongside reports that the US and Iran may be moving closer to a peace deal, helping support broader risk appetite.

Tech shares were front and center. Advanced Micro Devices (AMD) surged nearly 19% after upbeat earnings and guidance, while Super Micro Computer (SMCI) jumped 25% on stronger-than-expected results and outlook, reinforcing the strength of the AI-driven trade.

After the bell, investors turned their attention to earnings from Arm, AppLovin, and Warner Bros. Discovery for further clues on the durability of the tech-led rally.

3:45pm: Proacitve news headlines

• Medicus Pharma reported additional Phase 2 trial data showing a positive dose-response for its D-MNA treatment in basal cell carcinoma, reinforcing earlier topline results.
• Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF, FRA:A9J0) reported high-grade gold and silver intercepts from drilling at its Philadelphia project, extending mineralization at the Perry Zone.
• Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) reported strong drilling results, including one of its best intersections at the Lion Zone, as it advances toward an updated resource estimate.
• Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF, FRA:9SU0) completed drilling at its Rocas project, with early results showing anomalous radioactivity that indicates potential uranium mineralization.
• Miivo Holdings Corp (TSX-V:MIVO) launched an AI-powered sales leads platform designed to help businesses generate enriched B2B contact lists without manual research.
• Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF, FRA:3XS0) advanced exploration at its Cochise district with a new airborne geophysical survey aimed at identifying copper-bearing structures.
• Silver Range Resources Ltd (TSX-V:SNG, OTC:SLRRF, FRA:8SR) expanded its Sniper Property in Nevada and reported high-grade gold samples from newly staked claims.

2:50pm: Market movers

• Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD)rallied after strong results and guidance commentary highlighted demand exceeding expectations and ongoing supply constraints driven by robust AI-related customer demand.
• Restaurant Brands International (TSX:QSR, NYSE:QSR) reported stronger-than-expected Q1 results driven by international growth and improving Burger King US performance, though shares fell on weakness at Popeyes and Tim Hortons.
• Hut 8 Mining Corp (TSX:HUT, Unlisted (US):HUTMF) surged after announcing a $9.8 billion, 15-year lease with an investment-grade tenant, marking a major step in its pivot toward AI-focused hyperscale data center infrastructure.
• CVS Health Corp (NYSE:CVS) rose after posting Q1 earnings and revenue that beat expectations, with adjusted EPS of $2.57 topping estimates.
• Uber Technologies Inc (NYSE:UBER, XETRA:UT8) climbed after Q1 results and Q2 guidance both exceeded expectations, driven by double-digit revenue growth and stronger-than-expected earnings.
• Walt Disney Co (NYSE:DIS, XETRA:WDP) gained after reporting better-than-expected Q2 results, supported by stronger streaming profitability and higher theme park spending.
• Novo Nordisk (NYSE:NVO) advanced after delivering Q1 results far above forecasts, fueled by strong demand for its weight-loss treatments and international sales strength.
• Strategy Incorporated (NASDAQ:MSTR) fell after reporting a significantly larger-than-expected Q1 loss, driven by steep declines in the value of its Bitcoin holdings.
• Super Micro Computer Inc (NASDAQ:SMCI) surged despite a revenue miss, as strong earnings and margin performance boosted investor sentiment in its AI server business.
• Medicus Pharma (NASDAQ:MDCX) reported positive Phase 2 trial data showing a dose-response effect for its skin cancer treatment, supporting continued clinical development progress.
• Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF, FRA:A9J0) reported high-grade gold and silver drill intercepts at its Philadelphia project in Arizona, expanding mineralization at the Perry Zone.
• Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) delivered strong drilling results, including its second-best intersection to date at the Lion Zone, as it advances resource expansion at its Quebec project.

1:55pm: Peace deal driving positive sentiment

Hopes of a potential US-Iran peace deal are boosting risk sentiment and sending oil sharply lower, with Brent crude falling about 7% to around $101 per barrel.

"The news so far on Wednesday suggests an abrupt deescalation compared to earlier this week," Kathleen Brooks, research director at XTB noted. 

"Iran has confirmed that it is reviewing a new US proposal, and reports from Pakistan, where mediation between the two sides is taking place, suggests that a one-page memorandum to end the war could be produced very soon.

"We have been promised peace deals before, which have then failed to materialize, so while the market is wiling to trade on the back of this deescalation, it will take further concrete steps to end the war and reopen the Strait of Hormuz before the oil price can meaningfully fall below $100 per barrel for Brent crude."

12:50pm: AMD keeps gaining

AMD shares were up around 15.7% on Wednesday afternoon after its latest earnings highlighted expanding AI exposure in CPUs and GPUs.

"Our bullish view is that investors are still not fully appreciating the tidal wave of growth on the horizon from the $3 trillion of enterprise and government spending over the next 3 years around AI technology and use cases," Wedbush's Dan Ives commented.

"The rapid pace of AI adoption is underway and the focus is finding enterprise and department level use cases to launch throughout 2026 as we are seeing no cracks in AI demand on the chips/hardware front which gives us a bright green light to own core tech names throughout 2026.

"It’s crystal clear to us that the AI Revolution is accelerating at a warp speed pace with 2026 being an inflection point year for AI with hyperscalers now investing over $700 billion in capex in FY26 to capitalize on the opportunities in the space."

11:40am: A euphoric state

Markets are getting a bit euphoric on "flimsy" news, according to IG's chief market analyst, Chris Beauchamp.

“Once more stocks have found themselves jolted higher by reports of progress towards a fresh US-Iran agreement," Beauchamp commented.

"Traders quickly skimming headlines caused equities to make further strong gains, though a closer reading suggests that even an initial understanding will, initially, lead only to more talks.

"Still, any hint of fresh talks is enough to spark another manic round of buying, a sign of how keen investors are to see the end of this ill-conceived conflict.”

10:45am: Labor market firms up

Private employers added 109,000 jobs in April, according to ADP, coming in just below expectations but marking the strongest monthly gain since early 2025 and signaling resilience in the labor market despite geopolitical concerns.

Hiring has picked up in recent months, with average monthly gains reaching 62,000 so far in 2026, nearly double last year’s pace. Bill Adams, chief US economist at Fifth Third Commercial Bank said the improvement reflects support from tax cuts, increased government spending and interest rate reductions in late 2025.

The outlook, however, remains tied to developments in the Iran conflict. A prolonged disruption could drive energy prices higher and weigh on consumers, while also impacting global economies and US exports. A quicker resolution would likely limit the economic fallout.

Adams expects Friday’s government jobs report to show a 120,000 increase in nonfarm payrolls, with the unemployment rate steady at 4.3% and wage growth accelerating to 3.8% annually. If realized, job gains would continue to outpace labor force growth, potentially pushing unemployment lower later this year if geopolitical risks ease.

10am: AMD, Super Micro and Disney lead gains

Wall Street stocks have surged to new all-time highs at the open. 

In the first half-hour of trading, the Nasdaq Composite jumped over 1% to 25,597, while the S&P 500 climbed 61 points or 0.85% to a new record high above 7,320, both in virgin territory. 

Meanwhile, the Dow Jones rose 1.1% too, up to 49,841, still some way from its own peaks above 50,100 from before the Iran war. 

Top of the S&P leaderboard is Advanced Micro Devices, up 19.3%, with Super Micro Computer up 17.5%. 

Leading the Dow is Disney, up 8% on the back of its earnings that exceeded Street estimates thanks to growth in streaming and theme park revenues.

8am: Strong open expected as US-Iran deal hoped to be close

US futures point to a strong open, extending a global rally driven by hopes of a breakthrough in the Middle East, with further fuel from strong results from AMD and Super Micro Computer overnight.  

The Dow Jones has been called more than 500 points higher, with futures up 1%, while futures for the S&P 500 are up 0.9%.

Nasdaq futures are leading expected gains, up 1.4%, with shares in AMD and Super Micro up 18.5% and 13.1% in premarket trading, respectively. 

The upbeat tone for overall markets follows a sharp surge in European stocks, where London's FTSE 100 has jumped 2.6% and Germany's DAX 2.75%.

Sentiment has been lifted by reports that the US and Iran are edging closer to a potential agreement to end the conflict.

US officials believe, according to an Axios report, that they are close to "a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations".

Both sides expected to respond on key points within 48 hours. While no deal has been finalised, it was described as the closest progress since the war began.

The proposed framework would include a pause on Iran’s nuclear enrichment, phased sanctions relief from the US and a gradual reopening of the Strait of Hormuz.

Overnight, President Trump said he was pausing this week's effort to move ships through the Strait of Hormuz to allow talks with Iran. 

Oil prices and government bond yields fell overnight after Trump made the announcement on social media, which he said was based on the request of Pakistan and other countries and followed "great progress has been made toward a complete and final agreement with representatives of Iran."

He said, 'Project Freeedom' would be "paused for a short period of time to see whether or not the Agreement can be finalized and signed".

By 8am, oil prices had fallen almost 10%, with WTI crude at just over $92 a barrel, while gold surged $145 to trade at $4,700 an ounce.