Markets Rally on Iran Peace Deal Hopes; S&P 500 Reaches Record High
The S&P 500 surged 1.46% to 7,365.12 on May 6 as reports emerged that the U.S. and Iran are nearing a nuclear deal. Oil prices crashed roughly 7%, and all three major indexes closed at records, signaling investor optimism about reduced geopolitical risk.
Markets Hit New Highs Amid Iran Peace Talks
The S&P 500 surged 1.46% to 7,365.12 on Wednesday, May 6, its first close above 7,300, after Axios reported that the US and Iran are nearing a deal. WTI crude crashed roughly 7% toward $95 and Brent fell to approximately $103. The S&P 500 surged 1.46% to 7,365.12, the Nasdaq gained 2.02% to 25,838.94, and the Dow added 612 points to 49,910.59.
Earnings and Economic Data
AMD surged 18% after beating Q1 earnings and revenue estimates, with CEO Lisa Su telling CNBC that "agentic AI" is driving "tremendous demand" for CPUs. S&P 500 Q1 earnings are now expected to grow 14% YoY, up from 12% estimates at end of March, with full-year 2026 earnings projected to rise 18.7%.
Energy and Treasury Impact
Treasury yields fell as declining energy prices reduced near-term inflation concerns. The sharp pullback in oil prices represents a significant relief for inflation expectations after months of elevated energy costs tied to the Iran conflict.