S&P 500, Nasdaq hit records as AMD surges in 2026

Record highs powered by tech and geopolitics

The S&P 500 and the Nasdaq pushed to fresh all-time highs on May 6, helped by a sharp rally in chip and AI-linked stocks alongside a drop in oil prices. The move reflected a mix of company-specific catalysts and macro headlines that eased near-term inflation anxiety. Reports suggesting the United States and Iran were nearing an agreement added to risk appetite, while falling crude supported transport and consumer-facing names. At the same time, softer labour data helped U.S. Treasuries, reinforcing the “good news is good news” tone for equities.

Where the major indexes traded

By mid-session, U.S. benchmarks were firmly higher, with gains broad enough to keep leadership beyond just mega-cap tech. Reuters reported that at 12:30 p.m., the Dow Jones Industrial Average rose 510.85 points, or 1.04%, to 49,809.10. The S&P 500 gained 82.14 points, or 1.13%, to 7,341.36, while the Nasdaq Composite rose 395.68 points, or 1.56%, to 25,717.84. Separately, Barchart data also showed the S&P 500 up about 1.19% and the Nasdaq 100 up about 1.44% during the session.

AMD’s forecast sparks a chipmaker rally

Semiconductors and AI-infrastructure names were central to the day’s momentum, led by Advanced Micro Devices. AMD rose nearly 17% to a record high after the company forecast second-quarter revenue above expectations, supported by robust demand for data-center chips. Barchart noted AMD reported Q1 revenue of $10.25 billion and guided Q2 revenue of $10.90 billion to $11.50 billion, both above consensus levels cited in the report. The tone across chip earnings reinforced investor confidence that AI-related capital expenditure remains resilient.

Broader semiconductor participation

The rally extended beyond AMD, with multiple large names posting solid single-day moves. Intel shares gained about 2.4% in the Reuters snapshot, while the broader gauge of U.S. chipmakers rose 3.5% to a fresh peak. Barchart also flagged gains across key suppliers and toolmakers, including ASML (up more than 5%) and Nvidia (up more than 4%). Applied Materials and KLA were up more than 3%, while Micron, Intel, and Texas Instruments were up more than 2%.

Oil slump and “peace hopes” lift risk sentiment

Oil prices fell sharply after reports that the U.S. believed it was close to an agreement with Iran to end a nearly 10-week conflict, according to Axios reporting referenced in the article. President Trump said “great progress has been made” toward a “complete and final agreement,” while also stating that a U.S. blockade of ships transiting to and from Iranian ports would remain in force until a deal is agreed. WTI crude fell more than 6% to a two-week low, and Reuters noted oil fell below $100 a barrel for the first time since April 22.

Bonds strengthen as inflation expectations cool

The plunge in crude fed through quickly to rates, with Treasuries gaining as investors priced lower inflation pressure. Barchart reported the 10-year T-note yield fell to a one-week low of 4.33%. The 10-year breakeven inflation rate slipped to a one-week low of 2.417%, signalling reduced market-implied inflation expectations. This rates backdrop added support to growth-oriented equities, especially technology.

Labour data and a hawkish Fed counterpoint

Macro data also played a role, but the message was mixed. The April ADP employment report showed U.S. companies added 109,000 jobs, below expectations of 120,000, which was described as “Fed-friendly” in the context of policy. However, St. Louis Fed President Alberto Musalem struck a hawkish tone, saying inflation was “meaningfully above” the 2% target and that risks had shifted toward inflation.

Sector rotation: travel gains, energy retreats

Lower crude prices reshaped sector performance within the session. Airline stocks and cruise operators climbed as fuel cost expectations eased, with United Airlines, Alaska Air Group, and Royal Caribbean up more than 5%, and American Airlines, Carnival, and Southwest up more than 4%, according to Barchart. On the other side, energy producers and service providers fell with the oil price drop: Devon Energy, APA Corp, and Occidental Petroleum were down more than 6%, and Valero was down more than 5%.

Earnings season breadth and market internals

Beyond chips, earnings were broadly supportive, with Reuters citing strong season-wide delivery so far. Of the 314 S&P 500 companies that reported through May 1, 83% beat analysts’ profit estimates, according to LSEG I/B/E/S data cited by Reuters. Market breadth also favoured bulls: advancing issues outnumbered decliners by 2.46-to-1 on the NYSE and 1.89-to-1 on the Nasdaq. The S&P 500 recorded 40 new 52-week highs and 14 new lows, while the Nasdaq Composite logged 158 new highs and 73 new lows.

Key figures at a glance

What this means for investors watching from India

For Indian investors tracking global cues, the session highlighted how quickly U.S. equity leadership can rotate based on a combination of earnings and commodity-driven inflation signals. The link between oil prices, inflation expectations, and bond yields remained central, with crude weakness coinciding with a fall in yields and strength in growth stocks. Semiconductor momentum, driven by AI demand narratives and company guidance, continued to dominate risk-on positioning.

Conclusion

U.S. stocks hit record highs as upbeat chip earnings, led by AMD’s outlook, coincided with a sharp fall in oil and lower Treasury yields on headlines about a possible U.S.-Iran agreement. The next set of cues will likely come from further developments around the Strait of Hormuz and additional policy commentary as markets weigh inflation risks against softening pockets in employment data.