U.S. Stock Market Surges on May 5 as Iran Tensions Ease Slightly; Tech and Small-Caps Lead Gains
U.S. stock markets rallied on Tuesday, with the S&P 500, Nasdaq, and Russell 2000 all posting gains amid easing Middle East tensions. The stock market recovery reflects investor confidence that the fragile U.S.-Iran ceasefire is holding despite recent military exchanges in the Strait of Hormuz.
Market Performance
U.S. stocks were higher on Tuesday, while oil prices slid as traders reacted to a number of solid earnings results, with the S&P 500 rising 1% to hit an all-time intraday high and the Nasdaq Composite gaining 1.1% to score a fresh all-time high.
Oil Price Relief
Crude prices declined across the board, giving equities a boost, with West Texas Intermediate crude futures dipping 4% to around $101 per barrel and Brent crude futures losing 3% to trade at above $109 a barrel.
Iran Ceasefire Status
The ceasefire between the U.S. and Iran remains fragile amid fresh attacks in the Strait of Hormuz, though Defense Secretary Pete Hegseth said Tuesday that the ceasefire "certainly holds" and that "two U.S. commercial ships, along with American destroyers, have already safely transited the strait, showing the lane is clear."
Notable Earnings
Pfizer shares climbed 2.2% after the pharmaceutical giant beat Wall Street's first-quarter earnings and revenue forecasts and reaffirmed its 2026 outlook. Intel shares surged 10% after Bloomberg reported that Apple has held early-stage discussions with the chipmaker and Samsung about manufacturing the main processors for its devices in the U.S.