Stocks Surge as Oil Falls Amid US-Iran Peace Hopes and AI Earnings

U.S. and Iranian officials are reportedly nearing a deal to end hostilities in the Gulf, a development that lifted risk appetite and sent major equity indexes higher on Wednesday. The Dow Jones Industrial Average rose 1.1%, the S&P 500 gained 1.2% and the Nasdaq Composite jumped 1.6%, pushing all three to fresh record levels. In Europe, the STOXX 600 climbed another 2.2% after a 0.7% gain the previous day, while MSCI's All‑Country World Index advanced 1.64% to a new high.

Brent crude, the global benchmark, fell sharply, slipping to $101.56 per barrel, a 7.5% decline that placed the price just under $100 – its lowest level in two weeks. The slide reflected reduced concerns over supply disruptions through the Strait of Hormuz as investors priced in a possible peace settlement. The U.S. dollar weakened 0.3% against major peers, and the yen surged up to 1.8% versus the dollar, sparking talk of possible intervention.

AI‑related earnings powered the rally, with chipmaker Advanced Micro Devices surging about 17% after forecasting second‑quarter revenue above expectations. Intel also hit a record high, while Arm Holdings and Qualcomm posted strong gains. In Asia‑Pacific markets outside Japan, the broad index rose 3.2%; Samsung Electronics jumped 14%, briefly crossing the $1 trillion market‑cap threshold and overtaking Berkshire Hathaway. Analysts noted that massive AI‑driven capital spending in the United States is boosting earnings outlooks for semiconductors, tech hardware, industrials and materials across the region.