US STOCKS-Wall St surges as US-Iran ceasefire holds after earlier jitters

Archer-Daniels-Midland Co

05/05/2026 17:57

Indexes up: Dow 0.57%, S&P 500 0.84%, Nasdaq 1.01%

Intel jumps after reported talks with Apple for chipmaking

Archer-Daniels-Midland up following Q1 profit beat

Updates with afternoon trading

By Niket Nishant and Utkarsh    Hathi

May 5 (Reuters) - Wall Street's main indexes jumped on Tuesday as the U.S.-Iran ceasefire held firm despite the latest flare-up in tensions, allowing investors to shift focus to artificial-intelligence stocks and corporate earnings.

Washington said on Tuesday the
ceasefire with Iran was intact
, allaying worries that attempts by both sides to assert control over the Strait of Hormuz would lead to an escalation in hostilities.

With those fears easing somewhat, for now, investors were able to refocus on the fundamentals that have underpinned company earnings.

Chip designer AMD's AMD.O shares rose 3.2% ahead of  results, due after market close. Intel INTC.O rose 12.3% after Bloomberg News reported that Apple AAPL.O had held exploratory discussions about enlisting the company's chipmaking services to produce the main processors for its devices.

The Philadelphia SE Semiconductor index .SOX gained 4.2%, while S&P 500 technology stocks .SPLRCT rose 1.5%, both hitting all-time highs.

"What has stood out repeatedly is the resilience of corporate America," said Brian Levitt, chief global market strategist at Invesco.

"It's reasonable to expect that the geopolitical landscape will remain noisy. (But) the underlying businesses that make up the market will still be able to deliver growth."

At 12:25 p.m. ET, the Dow Jones Industrial Average .DJI rose 277.80 points, or 0.57%, to 49,219.70, the S&P 500 .SPX added 60.35 points, or 0.84%, to 7,260.83, and the Nasdaq Composite .IXIC gained 252.42 points, or 1.01%, to 25,320.22.

     Brent crude futures LCOc1 lost 3.5% but were still trading above $110 a barrel.

Ten of the 11 main S&P sectors were in the green.

RISKS FROM ELEVATED OIL PRICES PERSIST

As a net energy exporter, the U.S. has so far held up better than several other economies. But some investors believe that is no justification for unfettered optimism, warning markets may not be fully pricing in risk.

"Even U.S. equities won't be insulated" if the Strait of Hormuz does not open, BlackRock Investment Institute analysts led by Global Chief Investment Strategist Wei Li said in a note.

The Federal Reserve also appeared unlikely to provide relief in the near term after data released on Tuesday showed U.S. job openings fell to 6.866 million in March, slightly above the 6.835 million estimate. This reinforced the view that labor market resilience could give the central bank room to keep interest rates higher for longer.

The Institute for Supply Management's non-manufacturing purchasing managers' index for April came in at 53.6, also narrowly missing the estimate of 53.7, according to economists polled by Reuters.

Meanwhile, grain trader Archer-Daniels-Midland ADM.N rose 5.6% after reporting better-than-expected first-quarter profit on higher margins.

DuPont DD.N gained 8.5% after the industrial materials maker lifted its annual profit forecast.

Shares of Pinterest PINS.N soared 9.2% after the image-sharing platform forecast second-quarter revenue above analysts' estimates.

Advancing issues outnumbered decliners by a 2.69-to-1 ratio on the NYSE and by a 1.69-to-1 ratio on the Nasdaq.

The S&P 500 posted 42 new 52-week highs and 21 new lows, while the Nasdaq Composite recorded 134 new highs and 68 new lows.

 (Reporting by Niket Nishant and Utkarsh Hathi in Bengaluru; Editing by Pooja Desai)

 ((Niket.Nishant@thomsonreuters.com;))