Earnings and Hormuz Optimism Propel Wall Street indexes to New Record Highs

Barry Adams
06 May, 2026
New York City

U.S. stock market indexes advanced amid conflicting reports that suggested that the U.S. and Iran are close to entering a temporary peace agreement. 

The U.S. president toned down his rhetoric toward Iran and its military and appeared to strike a tone that raised hopes for the resumption of trade through the Strait of Hormuz. 

About 20% of global crude oil shipments pass through the narrow passageway in the Middle East, and the crucial artery plays a significant role in delivering crude oil and LPG gas from the Gulf nations to India, China, Japan, and South Korea. 

Moreover, at least fifteen nations in Asia are dependent on Gulf nations for the supply of their energy products, impacting more than three-quarters of the world population. 

The sharp decline in today's oil prices was driven by the expectations that the U.S. and Iran are closer-than-expected in striking a deal to reopen the Strait of Hormuz. 

Crude oil prices dropped 13% to $88.95 a barrel, and international Brent crude prices plunged 11% to $97.20 a barrel.

Broader averages in Europe soared between 2% and 3%, and benchmark indexes in Japan and India advanced 0.4% and 1%, respectively. 

Indexes and mainland China and Hong Kong gained more than 1% after investors returned from the Labor Day weekend. 

Wall Street indexes scaled new highs in the previous trading session and extended five-week gains. 

Since the latest market rally from the bottom on March 30, the S&P 500 index is now up 17%, and the tech-heavy Nasdaq Composite has gained over 20%. 

Moreover, corporate earnings have surpassed market expectations, delivering another upward push to the leading tech and industrial companies. 

 

U.S. Movers 

Advanced Micro Devices soared 21% to $429.58 after the chip and server company reported better-than-expected first-quarter results. 

The sustained growth in demand from data centers supported the increase in outlook beyond the market expectations. 

Revenue jumped 38% to $10.3 billion from $7.4 billion, net income advanced 95% to $1.4 billion from $709 million, and diluted earnings per share soared 91% to 84 cents from 44 cents a year ago.

Data center revenue soared 57% from a year ago to $5.8 billion, driven by strong demand for the company's CPU and GPU processors. 

Client and gaming segment revenue rose 23% to $3.6 billion, and embedded segment revenue increased 6% to $873 million. 

For the second quarter, the company estimated revenue of $11.2 billion, with a band of $300 million, an annual increase of 46% from the midpoint of the range, and a sequential increase of 9%. 

The company guided an adjusted gross margin of 56%.

In the year so far, AMD has surged 65% and, over the last 52 weeks of trading, advanced 260%.