U.S. equities pushed deeper into record territory on Wednesday, May 6, as a blowout earnings report from Advanced Micro Devices reignited the AI trade and reports of an imminent U.S.–Iran peace memorandum sent oil lower. The S&P 500 climbed 0.72%, the Nasdaq Composite added 0.73%, and the Dow Jones Industrial Average rose 0.94%, with all three major benchmarks closing at fresh highs.
AMD Delivers a Blowout Quarter
The session's headliner was Advanced Micro Devices, which reported first-quarter results after Tuesday's close that smashed Wall Street expectations. AMD posted adjusted earnings of $1.37 per share on revenue of $10.25 billion, topping consensus estimates of $1.29 and $9.89 billion respectively. Revenue jumped 38% from $7.44 billion a year earlier, driven by a 57% surge in data center sales to $5.8 billion as hyperscalers continued absorbing every accelerator the chipmaker can produce.
Guidance was even more striking. AMD projected current-quarter revenue of roughly $11.2 billion, plus or minus $300 million — implying year-over-year growth of about 46% and well ahead of the Street. Shares ripped roughly 20% higher in premarket trading and finished the regular session up about 15%, while after-hours trading carried the stock to an all-time high of $379.90.
Supermicro Joins the Rally
The AI-server complex moved in lockstep. Super Micro Computer rallied 17% after the company telegraphed stronger-than-anticipated guidance, easing some of the doubts that have weighed on the stock through a multi-month drawdown. The pair of results helped reverse a stretch of skepticism around AI capital-spending durability, and reinforced the narrative that hyperscaler buildouts are still accelerating heading into the back half of 2026.
A One-Page Memo to End the War
The geopolitical tape was just as supportive. Axios reported, citing two U.S. officials and two additional sources, that the White House believes it is closing in on a one-page, 14-point memorandum of understanding with Tehran. The framework — being negotiated by envoys Steve Witkoff and Jared Kushner with Iranian counterparts both directly and through mediators — would declare an end to the regional conflict and open a 30-day window for a more detailed accord covering Strait of Hormuz transit and limits on Iran's nuclear program.
According to the reporting, the proposed deal would commit Iran to a moratorium on uranium enrichment in exchange for the U.S. lifting sanctions and releasing billions in frozen Iranian funds. Officials told Axios that Washington expects Iran's response on several key points within the next 48 hours, and that "nothing has been agreed" — but that this is the closest the two sides have come since the war began.
Oil Slips, Inflation Shadow Recedes
The diplomatic optimism rippled through commodity markets, with crude prices retreating from recent highs and easing the inflation overhang that has dogged Federal Reserve communications. The relief is timely: the Bureau of Labor Statistics is set to release April CPI data on May 12, with March's print having shown headline inflation at 3.3% year-over-year and energy up 10.9%, led by a 21.2% jump in gasoline tied to the Iran conflict. A durable ceasefire would meaningfully soften the energy contribution to upcoming reports.
Setup Into Next Week
With AMD validating the AI capex story, Supermicro confirming server demand, and a credible diplomatic off-ramp in the Persian Gulf taking shape, bulls enter the back half of the week with all three pillars of the 2026 melt-up — earnings, geopolitics, and disinflation — pointing the same direction. The April CPI report on Tuesday now becomes the next gating event.
Sources: Yahoo Finance, CNBC, Axios, TheStreet, Investing.com, U.S. Bureau of Labor Statistics