S&P 500 and Nasdaq notch records; AMD results spark AI stock rally

Published Thu, May 7, 2026 · 05:47 AM

[BENGALURU] The S&P 500 and the Nasdaq surged to record-high closes on Wednesday (May 6), buoyed by signs of a resolution in the Middle East conflict, while strong earnings from Advanced Micro Devices (AMD) sparked a rally in chipmakers and other artificial intelligence-related stocks.

AMD soared almost 19 per cent to an all-time high after forecasting quarterly revenue above expectations on robust demand for its data centre chips.

Shares of rival Intel gained 4.5 per cent, while the PHLX chip index rallied 4.5 per cent, bringing its 2026 gain to 62 per cent.

Global stocks surged and oil prices slumped after Iran said that it was reviewing a new US proposal, while sources said Washington and Teheran were closing in on a one-page memorandum to end the war, while leaving tricky issues such as Iran’s nuclear programme for later.

Brent crude futures fell about 8 per cent to US$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 per cent of S&P 500 companies that reported to 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 US production of optical connectivity products used in AI data centres. Nvidia climbed 5.7 per cent.

Hut 8 soared 35 per cent after the AI data centre developer signed a 15-year lease worth US$9.8 billion for its Beacon Point data centre campus in Texas.

The S&P 500 climbed 1.46 per cent to end the session at 7,365.12 points.

The Nasdaq gained 2.02 per cent to 25,838.94 points, while the Dow Jones Industrial Average rose 1.24 per cent to 49,910.59 points.

Volume on US exchanges was heavy, with 18.8 billion shares traded, compared to an average of 17.6 billion shares over the previous 20 sessions.

Nine of the 11 S&P 500 sector indexes rose, led by industrials, up 2.6 per cent, followed by a 2.56 per cent gain in information technology.

Year to date, the S&P 500 is now up almost 8 per cent, while the Nasdaq has gained 11 per cent.

US private payrolls posted their largest increase in 15 months in April, pointing to continued labour market stability even as the conflict with Iran clouds the economy’s outlook.

Investors were awaiting the more comprehensive non-farm payrolls report on Friday, with US jobs seen increasing by 62,000 in April after rebounding 178,000 in March, according to a Reuters survey of economists.

St Louis Federal Reserve president Alberto Musalem said the risks to monetary policy have shifted towards higher inflation, possibly requiring interest rates to stay on hold for some time amid a seemingly stable job market.

Walt Disney rose 7.5 per cent after the entertainment firm beat estimates for second-quarter results and as investors got a glimpse of CEO Josh D’Amaro’s growth strategy for the company.

Uber Technologies gained 8.5 per cent after the ride-hailing and delivery platform forecast strong second-quarter bookings.

Super Micro rallied 24.5 per cent following a stronger-than-expected forecast for fourth-quarter revenue and adjusted profit.

Advancing issues outnumbered falling ones within the S&P 500 by a 1.7-to-one ratio.

The S&P 500 posted 46 new highs and 21 new lows; the Nasdaq recorded 186 new highs and 92 new lows. REUTERS