Wall Street staged a powerful broad-based rally on Wednesday, May 6, 2026, as a breaking Axios report that the United States and Iran were finalizing a 14-point peace memorandum sent oil prices crashing more than 7%, unlocking a surge in risk assets from New York to Madrid. The S&P 500 advanced 1.46% to 7,365.12, closing at a new all-time record, while the Nasdaq Composite jumped 2.02% to 25,838.94, also a fresh record high. The Dow Jones Industrial Average added 612.34 points (+1.24%) to close at 49,910.59, its highest close on record. European indices rallied 2–3% across the board, and Asian markets that were open extended the prior session’s gains.
US Markets: A Historic Day for Stocks and Oil
Iran Peace Deal Report Triggers Oil’s Biggest Drop in Months
The catalyst came before the New York open. Axios reported that the US and Iran were nearing agreement on a one-page, 14-point memorandum of understanding to end the two-month-old military conflict. The plan would commit Iran to a moratorium on nuclear enrichment in exchange for Washington lifting sanctions and releasing billions in frozen Iranian funds, with both sides pledging to reopen the Strait of Hormuz to global shipping.
The geopolitical reprieve sent crude oil into freefall. West Texas Intermediate (WTI) crude settled at $95.08 per barrel, down 7.03%, while Brent crude finished at $101.27, off 7.83%. These were among the sharpest single-day declines since the conflict began. Energy stocks bore the brunt, with the sector falling 4.07% on the day — the only S&P 500 sector with a meaningful loss. Utilities also slipped 1.45%.
President Trump later tempered expectations with a Truth Social post calling it a “big assumption” that Iran would accept the proposal, adding that “the bombing starts” if talks fail. Markets pulled back from intraday highs following the post, but gains held broadly. Iran’s foreign ministry told CNBC it was “evaluating” the proposal.
Meanwhile, Trump separately announced a pause on Project Freedom — the US military escort program for vessels transiting the Strait of Hormuz — citing “great progress” toward a resolution.
AMD Leads an Epic Chip Rally — “Not Seen Since the Dot-Com Bubble”
Layered on top of the macro tailwind was one of the most significant single-stock earnings catalysts of 2026. Advanced Micro Devices (AMD) surged 18.6% after the chipmaker posted a Q1 beat and issued Q2 revenue guidance of $11.2 billion (±$300M) versus analyst expectations of $10.52 billion. First-quarter revenue climbed 38% year-over-year, with the data center segment as the primary driver.
CEO Lisa Su appeared on CNBC Wednesday morning attributing the forecast upgrade to explosive demand from agentic AI workloads: “Agents are really driving tremendous demand in the overall AI adoption cycle, and we’re very excited to be in the middle of it.” She added that the demand picture “became clearer over the last 90 days” following direct conversations with AMD’s largest customers.
The ripple effect through the semiconductor sector was historic — analysts described moves “not seen since the dot-com bubble burst.” The VanEck Semiconductor ETF (SMH) surged 5%. Super Micro Computer (SMCI) exploded +24.5% after its Q3 beat and Q4 profit guidance of $0.65–$0.79 per share versus the $0.55 consensus. Intel climbed 4.5%, and Nvidia added 5.8%.
Adding another layer to the chip story: Nvidia and Corning announced a major optical fiber manufacturing partnership. Three new facilities in North Carolina and Texas will increase Corning’s US optical capacity tenfold and create at least 3,000 jobs. Corning shares surged 17% on the deal.
ARM Holdings gained 13% intraday ahead of its after-hours earnings report, after UBS raised its 12-month price target to $245 from $175.
Broad Earnings Strength: Uber, Disney, ADP Payrolls
Earnings season continued to deliver surprises. Uber Technologies jumped 8.5% and Walt Disney added 5% after both companies reported resilient consumer spending despite elevated gas prices and geopolitical uncertainty. Disney beat on fiscal Q2 revenue, driven by streaming and theme park strength. Both CEOs pointed to the same dynamic: consumers are not pulling back.
On the macro side, ADP’s April private payrolls report came in at 109,000 — well above the 84,000 consensus — offering additional evidence of a stable US labor market. The beat reduces near-term pressure on the Federal Reserve to cut rates aggressively. Check the economic calendar for Friday’s official non-farm payrolls release.
Among notable decliners: CDW dropped 20.3% after reporting a disappointing Q1 operating income miss, and Cencora (COR) fell 17.4%.
After-Hours: DoorDash +12%, Fortinet +16%, ARM -7%
After the close, post-earnings moves extended the day’s narrative:
- DoorDash surged 12% after reporting Q2 order guidance that beat expectations, confirming the resilient delivery demand seen in Uber’s results.
- Fortinet jumped 16% after the cybersecurity firm raised its full-year billings guidance.
- ARM Holdings fell 7% after its earnings guidance disappointed investors who had bid the stock up 13% during regular trading. ARM’s report beat on revenue but offered a cautious forward outlook.
- Zillow dropped 6% after Q1 residential revenue of $450M missed the $454.2M estimate.
Full reactions to DoorDash and Fortinet will be visible in Thursday’s session.
European Markets: Soaring on Peace Hopes and Novo Nordisk
European stocks staged one of their strongest single-day performances in recent memory on Wednesday, led by falling oil prices, the Iran deal report, and a landmark pharmaceutical earnings beat.
| Index | Close | Change |
|---|---|---|
| STOXX Europe 600 | 623.25 | +13.53 (+2.22%) |
| FTSE 100 (London) | 10,438.66 | +219.55 (+2.15%) |
| DAX (Frankfurt) | 24,918.69 | +516.99 (+2.12%) |
| CAC 40 (Paris) | 8,299.42 | +237.11 (+2.94%) |
| FTSE MIB (Milan) | 49,696.75 | +1,139.25 (+2.35%) |
| IBEX 35 (Madrid) | 18,104.30 | +436.60 (+2.47%) |
Mining and auto stocks — two sectors most sensitive to oil costs and geopolitical risk — led European gains with a 4.5% surge. Banks and construction companies also rallied. Energy stocks moved lower in line with the oil price collapse.
European bond yields fell sharply as well: the UK gilt 10-year yield dropped more than 8 basis points to 4.973%, while the German 10-year Bund yield fell 6+ basis points to 3.0027%. Falling borrowing costs reflected both the oil-driven inflation reprieve and a broader flight to stability as diplomacy appeared to be working.
Novo Nordisk: Wegovy Pill Crushes Expectations, Shares +2.3%
Novo Nordisk was a standout gainer after reporting Q1 results for its oral GLP-1 drug (the Wegovy pill). Sales came in at 2.26 billion Danish krone — nearly double the 1.16 billion krone analysts had expected. The Danish pharmaceutical giant also raised its full-year 2026 guidance and noted that its Wegovy prescription held 65% of new GLP-1 prescriptions in the US, maintaining dominant market share in the weight-loss drug category. Shares rose 2.3% on the session.
Tariff Refund Expectations Lift Consumer and Industrial Names
European companies continued to navigate the US tariff landscape following a February 2026 US federal ruling on tariff legality. Philips and Pandora disclosed that they are applying for tariff refunds from US customs authorities. BMW and Daimler flagged ongoing tariff impacts on their earnings but signaled that the potential refund channel was under evaluation. The possibility of hundreds of millions in tariff refunds provided an additional tailwind for consumer-facing and industrial stocks.
Key Macro Indicators — May 6, 2026
| Indicator | Value | Change |
|---|---|---|
| S&P 500 | 7,365.12 | +1.46% 🔴 Record |
| Nasdaq Composite | 25,838.94 | +2.02% 🔴 Record |
| Dow Jones | 49,910.59 | +1.24% |
| WTI Crude Oil | $95.08/bbl | −7.03% |
| Brent Crude Oil | $101.27/bbl | −7.83% |
| US 10-Year Treasury | 4.352% | Fell |
| ADP Private Payrolls (April) | 109,000 | vs 84K est |
Track live macroeconomic indicators on EconPlex for real-time data updates.
Asia (May 6 KST): Kospi at Record High, China Returns from Holiday
Asian markets that were open on Wednesday (May 6 KST) rallied broadly, tracking the prior session’s Wall Street gains and responding positively to the Iran de-escalation narrative.
- South Korea Kospi: +6.45% to 7,384.56 — a new all-time record. Korean markets returned from the Children’s Day holiday (May 5). Samsung Electronics surged 14%+ to cross $1 trillion in market cap for the first time; SK Hynix rose 10%+.
- China CSI 300: +1.45% to 4,877.09 — Chinese markets resumed after the Labor Day holiday break.
- Hong Kong Hang Seng: +0.62%
- Australia S&P/ASX 200: +1.3% to 8,793.6
- Japan Nikkei: CLOSED (national holiday)
What to Watch on May 7 (Thursday)
- Iran response: Axios reported that US officials expected a response from Tehran “within 48 hours” of the Wednesday proposal. Markets will price in any positive or negative developments rapidly.
- ARM Holdings: Will Thursday’s session absorb the after-hours -7% drop, or will it reverse higher on strong fundamentals?
- DoorDash & Fortinet: Both surged after-hours — will buyers sustain those gains at the open?
- Shell (SHEL) earnings: Major European energy name reports in the context of a -7-8% oil price drop.
- Kenvue (KVUE) earnings: Consumer healthcare name to watch.
- Weekly jobless claims: Following the stronger-than-expected ADP print, initial claims data will be closely watched.
Stay ahead of every data release with the EconPlex Economic Calendar, and track live index and commodity moves on the Indicators page.
Sources: CNBC Markets Live, CNBC May 6 Live Updates, CNBC Oil Prices, CNBC AMD Earnings, CNBC Novo Nordisk, CNBC Tariff Refunds, Axios Iran Deal Report