S&P 500 Extends Record Run as Semis Soar, Oil Falls and Strait Traffic Flows

By Gerelyn Terzo Published May 6, 8:33AM EDT

Quick Read

Easing Iran tensions sent oil tumbling 9% to $93/barrel and broadened a risk-on rally across equities as geopolitical premiums drain from commodities and options pricing.
The S&P 500 is trading at record high levels, above the 7,200 threshold, and the market bulls appear to remain in control for today’s session as well. The AI trade as well as strong Q1 earnings results are serving as tailwinds for the broader markets, in addition to falling oil prices and signs of a Mideast peace deal.

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S&P 500 Extends Record Run as Semis Soar, Oil Falls and Strait Traffic Flows — © Miha Creative / Shutterstock.com

The S&P 500 (^GSPC) is set to extend a record run as crude tumbles and traders welcome signs the Iran conflict could be winding down. Stocks are soaring because the Strait of Hormuz appears clear and a chip-led rally is rolling into a second day. The PHLX Semiconductor Index (^SOX) has ballooned by 9.4% over the past five days alone, with semiconductor stocks like (NASDAQ:AMD | AMD Price Prediction) and Micron Technology (Nasdaq: MU) helping to buoy the S&P 500 (^GSPC) to above the 7,250 level.

The labor market is holding firm. ADP reported private payrolls climbed by 109,000 in April, rebounding from March’s 61,000 and comfortably ahead of the 84,000 Wall Street had anticipated. Healthcare and education continued to carry the load, responsible for more than half the gains at 61,000 new positions, with trade, transportation and utilities pitching in 25,000 and construction extending its recent streak with another 10,000.

Oil tumbles on Iran de-escalation

WTI oil futures dropped nearly 9% to around $93 per barrel, while Brent slid about 8% to near $101. Axios reported the U.S. and Iran are close to a deal that would include a moratorium on nuclear enrichment, and President Trump paused his “Project Freedom” effort to clear the Strait of Hormuz, citing “great progress” toward a final agreement.

AMD ignites another semiconductor surge

Advanced Micro Devices (NASDAQ:AMD) is up about 20% in premarket after Q1 revenue of $10.253 billion and non-GAAP EPS of $1.37 topped estimates, with Data Center sales jumping 57% to $5.775 billion. CEO Lisa Su guided Q2 revenue to roughly $11.2 billion, citing “accelerating demand for AI infrastructure.” AMD is already up 63% over the past month.

Intel (NASDAQ:INTC) added another 4% in premarket on the back of AMD’s print, reports of exploratory chipmaking talks with Apple, and the hire of former Qualcomm executive Alex Katouzian to lead its PC and physical AI businesses. Intel’s Q1, reported April 23, showed revenue of $13.58 billion with Data Center and AI sales of $5.05 billion.

NVIDIA and Corning partner on AI optics

NVIDIA (NASDAQ:NVDA) and Corning (NYSE:GLW) announced a long-term partnership to expand U.S. manufacturing of advanced optical connectivity for next-generation AI infrastructure. Corning will lift domestic optical capacity 10x and fiber capacity more than 50%, sending its shares into an investor day already up 85% year to date.

Alphabet (NASDAQ:GOOGL) is catching a bid on a report Anthropic will spend $200 billion with Google over five years on cloud and chips. Uber posted EPS of $0.72 versus $0.69 expected, though shares slipped 1% Tuesday.

Uber Gains

Uber Technologies (Nasdaq: UBER) stock is soaring on the heels of its Q1 earnings print. Despite coming up short on revenue, falling just shy of what Wall Street had penciled in, the company made up for it with stronger-than-expected bookings guidance for the current quarter, sending shares surging 10% response. On the earnings front, the ride-hailing giant posted 13 cents per share against an anticipated 70 cents, while revenue came in at $13.2 billion, narrowly missing the $13.29 billion analysts had forecast.

About the Author Gerelyn Terzo →

Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.