US close: Stocks surge as US-Iran tensions ease, corporate earnings impress

(Sharecast News) - US stock markets surged on Thursday on the back of renewed hopes for a peace deal between Washington and Tehran, with falling oil prices and a host of stronger-than-expected blue chip quarterly results boosting sentiment.

The Dow finished 1.2% higher at 49,910.59, briefly topping the 50,000 mark which it only reached a handful of times in mid-February. Meanwhile, the S&P 500 and Nasdaq both reached new record highs again, rising 1.5% and 2.0% respectively.

Big names were making a splash with their earnings on Wednesday, with strong gains seen from Uber, Disney, CVS Health and AMD in particular.

Oil prices tanked, with Brent down 7.8% at $101.27 a barrel and WTI settling 7.0% lower at $95.08 a barrel, following a report the US and Iran are close to reaching a deal to end the war. Axios, citing two US officials and two other sources briefed on the issue, said the White House believes it's getting close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.

It was understood the US expects Iranian responses on several key points in the next 48 hours. Among other provisions, the deal would involve Iran committing to a moratorium on nuclear enrichment, the US agreeing to lift its sanctions and release billions in frozen Iranian funds, and both sides lifting restrictions around transit through the Strait of Hormuz.

Sentiment had already been boosted early on after Donald Trump said he was pausing 'Project Freedom' to open the Strait of Hormuz as "great progress" was being made towards a "complete and final agreement with the representatives of Iran".

"No one knows how this latest peace plan will pan out; however, the market is willing to trade on hope at this stage," said Kathleen Brooks, research director at XTB. "Although US stocks are underperforming relative to Europe on Wednesday, we think that US stocks are better poised in the long term due to more strong earnings reports."

In other news, the ADP employment report revealed that the private sector added more jobs than expected in April. Employment rose by 109,0000 from March, versus expectations for a 99,000 increase. Meanwhile, the March figure was revised to show that 62,000 jobs were added, rather than 61,000.

Meanwhile, the Mortgage Bankers Association reported that US mortgage applications fell 4.4% in the week ended 1 May, extending the previous week's 2.6% decline. The drop came as benchmark mortgage rates rose by eight basis points, reflecting higher long‑term Treasury yields amid surging energy prices, increased underlying inflation and a resilient labour market that has fuelled expectations of a Federal Reserve rate hike later in the year.

Uber, Disney and AMD jump

Uber finished 8.5% higher after reporting stronger first-quarter bookings and issuing an above-forecast outlook on Wednesday, as growth in rides, delivery and active users offset the impact of a volatile macroeconomic backdrop. The ride-hailing and delivery group said gross bookings rose 25% year on year to $53.7bn, or 21% on a constant-currency basis, ahead of Wall Street expectations.

Walt Disney Co shares shot 7.5% higher after the media and entertainment giant's new boss Josh D'Amaro laid out his "long-term view" for the company, which involves using technology to deepen its relationship with customers. The comments came as Disney reported 7% revenue growth for the fiscal second quarter to $25.17bn, with income before tax rising 9% to $3.4bn. Both figures came in ahead of market expectations.

Chipmaker AMD delivered a stronger‑than‑expected set of first‑quarter results, pushing the stock 21.3% higher, with demand for AI hardware continuing to drive rapid growth. AMD said Q1 adjusted earnings came in at $1.37 per share, ahead of the $1.29 consensus, as revenue surged 38% year‑on‑year to $10.25bn from $7.44bn. Forward guidance was also ahead of market forecasts.

Shares in CVS Health rallied 4.8% after the US health insurance provider and pharmacy chain owner lifted its full-year earnings guidance as it posted better-than-expected earnings for the first quarter.

Meanwhile, Corning shares surged 12.0% after it announced a multiyear commercial and technology partnership with Nvidia to expand US-based manufacturing of the advanced optical connectivity solutions needed to power next-generation AI infrastructure.

Heading the other way as Restaurant Brands, which slid 5.5% after the fast-food conglomerate's first-quarter results revealed that revenue growth was held back by sales declines at Popeyes and Firehouse Subs.

Dow Jones - Risers

Intel Corp. (INTC) $113.01 7.76%

Walt Disney Co. (DIS) $108.06 7.54%

Apple Inc. (AAPL) $287.51 2.92%

3M Co. (MMM) $146.54 2.60%

Boeing Co. (BA) $229.93 2.47%

Caterpillar Inc. (CAT) $926.93 2.47%

Home Depot Inc. (HD) $323.05 2.42%

Amgen Inc. (AMGN) $331.11 2.31%

Procter & Gamble Co. (PG) $147.90 2.07%

Goldman Sachs Group Inc. (GS) $937.35 2.01%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $38.50 -5.64%

Chevron Corp. (CVX) $185.16 -3.88%

Salesforce.Com Inc. (CRM) $181.19 -3.10%

Cisco Systems Inc. (CSCO) $91.64 -2.09%

International Business Machines Corporation (CDI) (IBM) $225.74 -1.44%

Visa Inc. (V) $318.80 -1.00%

Johnson & Johnson (JNJ) $224.62 -0.43%

McDonald's Corp. (MCD) $284.10 -0.38%

Microsoft Corp. (MSFT) $413.96 -0.01%

S&P 500 - Risers

DaVita Inc (DVA) $193.88 23.46%

Advanced Micro Devices Inc. (AMD) $421.39 21.32%

Healthpeak Properties, Inc (DOC) $19.50 18.11%

International Flavors & Fragrances Inc. (IFF) $82.93 17.18%

QUALCOMM Inc. (QCOM) $192.57 16.22%

Ipg Photonics Corp. (IPGP) $101.94 12.52%

Corning Inc. (GLW) $181.57 12.01%

Akamai Technologies Inc. (AKAM) $121.99 10.22%

Lam Research Corp. (LRCX) $297.17 9.94%

United Airlines Holdings Inc (UAL) $100.04 9.25%

S&P 500 - Fallers

Cencora Inc (COR) $252.74 -17.38%

Arista Networks Inc. (ANET) $147.06 -13.61%

Celanese Corp. (CE) $62.12 -9.98%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Devon Energy Corp. (DVN) $46.60 -8.61%

Apache Corp. (APA) $38.30 -8.26%

Jacobs Solutions Inc. (J) $126.62 -7.27%

McKesson Corp. (MCK) $743.67 -7.16%

Occidental Petroleum Corp. (OXY) $55.12 -7.11%

Diamondback Energy Inc. (FANG) $195.08 -6.83%

Nasdaq 100 - Risers

QUALCOMM Inc. (QCOM) $192.57 16.22%

Lam Research Corp. (LRCX) $297.17 9.94%

Baidu Inc. (BIDU) $140.59 9.69%

Microchip Technology Inc. (MCHP) $102.92 8.21%

Asml Holdings N.V. (ASML) $1,544.74 8.07%

American Airlines Group (AAL) $12.94 7.79%

Intel Corp. (INTC) $113.01 7.76%

Micron Technology Inc. (MU) $666.59 7.43%

Applied Materials Inc. (AMAT) $428.62 6.37%

Liberty Global plc Series A (LBTYA) $12.29 6.13%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Skyworks Solutions Inc. (SWKS) $64.96 -5.63%

Charter Communications Inc. (CHTR) $156.52 -4.53%

Biomarin Pharmaceutical Inc. (BMRN) $54.60 -4.47%

Verisk Analytics Inc. (VRSK) $170.94 -3.24%

Intuit Inc. (INTU) $388.55 -2.77%

Autodesk Inc. (ADSK) $243.08 -2.74%

Workday, Inc. (WDAY) $122.63 -2.54%

Netflix Inc. (NFLX) $88.27 -2.26%

Cisco Systems Inc. (CSCO) $91.64 -2.09%