S&P 500 and Nasdaq Hit Record Highs Amid US-Iran Peace Deal Hopes

May 7, 2026

66 min

May 7, 2026 00:31

S&P 500, Nasdaq end at records on hopes for US-Iran peace deal

## Market Surge

Wall Street experienced a significant boost on Wednesday as the S&P 500 and Nasdaq Composite Index reached new record highs. The S&P 500 increased by 1.5% to 7,364.99, while the Nasdaq surged 2.0% to 25,838.94. The Dow Jones Industrial Average also rose, climbing 1.2% to 49,910.04.

## Key Drivers

The market rally was driven by optimism surrounding potential peace talks between the US and Iran, which led to a drop in oil prices. Investors are hopeful that a framework agreement could ease tensions, particularly in the Strait of Hormuz.

## Sector Performance

Chipmakers and AI-related stocks were among the top performers. Advanced Micro Devices saw a nearly 19% increase following strong revenue forecasts. Super Micro Computer and NVIDIA also posted significant gains, rising 24.5% and 5.7% respectively. Uber Technologies and Walt Disney Co also saw substantial increases in their stock prices.

## Energy Sector Decline

Conversely, energy stocks underperformed due to the sharp decline in oil prices, with several oil and drilling companies experiencing losses. Defensive sectors like utilities and consumer staples also lagged behind amid the market's risk-on sentiment.

## Corporate Earnings

Corporate earnings have been robust, particularly in sectors like AI, semiconductors, and cloud infrastructure. Reports indicate that over 80% of S&P 500 companies have exceeded analyst expectations, contributing to the market's positive momentum.

Read the full story at the source

What you need to know to get Emirates ID?

Leave your details and get a guide as a gift to avoid mistakes

Article contents