S&P 500 and Nasdaq 100 Hit New Records as AI Earnings Surge and Oil Plunges
MarketDash
Markets rally on AI optimism and falling oil prices, with AMD and Super Micro leading the charge.
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U.S. stocks pushed to fresh record highs by midday Wednesday, with the S&P 500 and Nasdaq 100 each clearing new all-time peaks as a wave of blowout AI earnings collided with a sharp slide in oil prices on hopes that Washington and Tehran are closing in on a deal to end the war.
President Donald Trump confirmed the diplomatic push with a post on Truth Social earlier this morning, indicating an end to the Epic Fury operation and the highly effective Blockade that will now allow the Hormuz Strait to be open to all, if Iran agrees to the terms of the deal.
Crude tumbled on the headlines, with WTI sinking 6.6% to $95.48 a barrel and Brent falling 6.9% to $102.33. The energy unwind erased much of the war-risk premium built into the curve over recent weeks, with WTI now down nearly 16% month-to-date.
The S&P 500 climbed 1% to 7,332, on track for a fresh closing record, while the Dow Jones Industrial Average advanced 518 points, or 1.1%, to 49,816. Within Dow components, Walt Disney Co. (DIS) jumped 8% after a strong revenue print, while NVIDIA Corp. (NVDA) rallied 4.5% to $205, dragged higher by sector peers' AI capex commentary.
The Nasdaq 100 outperformed with a 1.2% gain to 28,353, propelled by an AI-infrastructure surge.
Semiconductor names exploded higher on a one-two punch of earnings beats from Advanced Micro Devices Inc. (AMD) and Super Micro Computer Inc. (SMCI), both rallying 16%. AMD soared after beating estimates and raising guidance on what management characterized as soaring data-center demand, while Super Micro rallied on a strong earnings beat tied to AI server orders.
Gold rallied 2.9% to $4,690 an ounce, finding a bid as real yields slipped, while the SPDR Gold Trust (GLD) climbed in tandem. Silver outpaced the yellow metal, jumping 6% to $77.18.
The Technology Select Sector SPDR Fund (XLK) led S&P 500 sectors.
The VanEck Semiconductor ETF (SMH) rallied along with peers Micron Technology Inc. (MU) and Intel Corp. (INTC), both of which gained more than 2% on AI infrastructure read-throughs.
The Energy Select Sector SPDR Fund (XLE) was the only major sector in the red as crude collapsed, dragging the VanEck Oil Services ETF (OIH) and the United States Oil Fund (USO) sharply lower in tandem with the WTI move.
Wednesday's Earnings Movers
Among the session's biggest single-stock stories, Flex Ltd. (FLEX) surged about 30% to $125.29 after delivering fourth-quarter EPS of 93 cents versus the 87 cents consensus and revenue of $7.5 billion versus the $6.95 billion estimate, while guiding fiscal 2027 to roughly 18% revenue growth and 32% adjusted EPS growth and reporting record adjusted gross and operating margins of 9.9% and 6.7%.
DaVita Inc. (DVA) jumped 18.4% to $185.85 after reporting first-quarter EPS of $2.87 versus the $2.33 consensus and raising its full-year EPS guide to $14.10–$15.20.
International Flavors & Fragrances Inc. (IFF) rallied 15.1% to $81.47 on a first-quarter EPS and EBITDA beat with revenue of $2.74 billion, topping consensus, even as sales fell 3.6% year over year.
Uber Technologies Inc. (UBER) jumped about 7% after issuing an upbeat bookings forecast.
On the downside, CDW Corp. (CDW) tumbled 20% to $109.50 despite an EPS beat of $2.28 versus $2.26 and revenue of $5.7 billion that topped estimates by $240 million, as management flagged memory supply constraints and pricing volatility weighing on margins.
Coupang Inc. (CPNG) sank 17.5% to $17.12 after revenue of $8.5 billion came in line, but adjusted EBITDA collapsed to $29 million from $382 million a year ago, with the company swinging to a $266 million net loss as voucher programs and network inefficiencies compressed gross margin by 228 basis points.
Bright Horizons Family Solutions Inc. (BFAM) dropped 16.7% to $67.98 after first-quarter revenue of $712.2 million missed the $713.4 million consensus, even as EPS of 82 cents beat and the company reaffirmed full-year EPS guidance at $4.90–$5.10 with Australia headwinds in focus.
Arista Networks Inc. (ANET) sold off 15.5% to $143.89 despite a beat-and-raise quarter — first-quarter revenue of $2.7 billion versus $2.62 billion consensus and EPS of $0.87 versus $0.81 — as management warned that supply constraints would persist for the next year or two and capped its full-year growth guide at 27.7%, with elevated valuation triggering profit-taking after the stock's 87% one-year run.
Bio-Techne Corp. (TECH) slid 13.9% to $48.79 after first-quarter revenue of $311.4 million missed the $323.4 million consensus by 3.7% and EPS of 53 cents came in below the $0.55 estimate, with sales falling 1.5% year over year.
