Dow jumps 356 pts as S&P 500, Nasdaq hit records

• Oil prices retreated sharply, with WTI crude falling 3.9% to $102.27 and Brent down 4% to $109.87, easing inflation concerns as the U.S.-Iran ceasefire holds
• Corporate earnings showed exceptional strength with 85% of S&P 500 companies beating estimates and aggregate first-quarter profit growth tracking at 28% year-over-year, the strongest since 2021
• The Philadelphia Semiconductor Index hit a record high as AI-driven demand continued, with AMD surging 6% after-hours on strong results

Market Summary: Major Indexes Rally on Easing Oil Prices and Strong Earnings

Market Performance:

U.S. equity markets closed sharply higher on May 5, 2026, with the Dow Jones Industrial Average gaining 356 points (+0.7%), while the S&P 500 and Nasdaq Composite advanced 0.8% and 1.0% respectively, both hitting all-time intraday records.

Key Drivers:

*Oil Price Decline:* Crude prices fell significantly as the U.S.-Iran ceasefire held firm. WTI crude dropped 3.9% to $102.27/barrel, while Brent crude declined 3.99% to $109.87. Defense Secretary Pete Hegseth confirmed the ceasefire remains intact, with U.S. commercial ships and destroyers successfully transiting the Strait of Hormuz. The oil retreat eased inflation concerns and boosted investor sentiment.

*Strong Earnings Season:* Approximately 85% of S&P 500 companies reporting thus far have beaten expectations, with aggregate Q1 earnings growth on track for 28% year-over-year—the strongest quarterly profit growth since 2021.

Sector Highlights:

The technology sector led gains, with the Philadelphia Semiconductor Index reaching a record high. AMD surged 6% in after-hours trading following strong earnings. Pinterest rallied on better-than-expected Q2 revenue guidance, while Archer-Daniels-Midland gained on improved margins. Palantir Technologies fell 7% despite beating estimates and raising guidance, illustrating selective investor responses.

Economic Data:

U.S. job openings totaled 6.866 million in March, slightly above forecasts, indicating labor market resilience. The ISM services index registered 53.6, marginally below expectations.

Market Implications:

AI-driven demand continues supporting technology stocks, while easing geopolitical tensions and robust corporate earnings underpin broad market strength. The combination of controlled inflation expectations and strong profit growth suggests sustained bullish momentum.