US equity indexes jumped while crude oil futures sank on Wednesday amid a growing likelihood of Iran agreeing to a peace deal and a rally in semiconductors following Advanced Micro Devices' (AMD) strong Q1 results.
The Nasdaq traded 2% higher at 25,838.94 after scaling a new peak of 25,850.19. The S&P 500 was up 1.5% to 7,365.12 after hitting an all-time high of 7,369.22 earlier in the session. The Dow Jones Industrial Average advanced 1.2% to 49,910.59.
All sectors, except energy and utilities, rose. Technology, industrials, and communication services were among the top gainers.
The White House is close to agreeing on a one-page memorandum of understanding to end the war with Iran and set a framework for more detailed negotiations about Tehran's nuclear ambitions, Axios reported, citing two US officials and two other sources briefed on the issue. While nothing is final yet, the sources said this was the closest the duo has been to an agreement since the war began.
Washington's MoU, if Iran accepts it, will lead to a gradual reopening of the Strait of Hormuz and lifting of the American blockade on Iranian ports, a person familiar with the matter told Bloomberg.
Meanwhile, President Donald Trump warned Iran that "bombing starts" again if a deal is not reached, according to multiple media reports.
West Texas Intermediate crude oil futures sank 6.6% to $95.55, and Brent crude futures plunged 7.4% to $101.76.
US Treasury yields fell, with the 10-year down 6.4 basis points to 4.35%, extending its retreat from the highest in about a month. Two-year yield slumped 6.8 basis points to 3.87%.
In precious metals, gold futures jumped 2.9% to $4,702.20, and silver futures surged 6% to $77.99.
In company news, Advanced Micro Devices (AMD) shares surged nearly 19%, among the top gainers on the S&P 500 and the Nasdaq, after the chipmaker overnight posted stronger-than-expected fiscal Q1 results and issued an upbeat Q2 revenue outlook.
Out of the ten top performers in a category of firms with a market capitalization of over $200 billion, more than half were related to semiconductors, according to data compiled by Finviz. Topping this list was AMD, whose quarterly results reinforced growing confidence in accelerating demand for products and services linked with artificial intelligence.
In economic news, employment in the US private sector grew at its fastest pace in more than a year in April, ADP data showed Wednesday, ahead of nonfarm payrolls due later in the week. Private jobs grew by 109,000, representing the fastest growth pace since January 2025, the payrolls processing firm said. The consensus was for 120,000 in a Bloomberg-compiled survey. The March print was revised down to 61,000 from 62,000.