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Oil prices sank Wednesday, and stock markets rallied worldwide with hopes that the United States and Iran are nearing a deal to allow ships to deliver crude from the Persian Gulf once again to their customers. The S&P 500 climbed 1.5% for its best day in nearly a month and hit another all-time high. The Dow Jones Industrial Average jumped 612 points, or 1.2%, and the Nasdaq composite rose 2% to its own record. Brent crude oil prices fell 7.8% to $101.27 per barrel from over $115 earlier this week, after President Trump stated the Strait of Hormuz could reopen to all if Iran accepts a U.S. agreement. The strait, blocked by the Iran war, has disrupted global oil flows and fueled inflation worldwide. Stock markets surged, with Seoul up 6.5%, Paris 2.9%, and London 2.1%, though hopes for war's end have faded before. Prices briefly dipped below $97 before rebounding above $100 amid Trump's bombing threats if Iran refuses. Wall Street eyed positives like Trump's pause on forceful Strait reopening and China's foreign minister urging a ceasefire, given Iran's tight economic ties to Beijing. Yet, oil gains pared as past optimism has repeatedly been dashed. AMD helped lead the market with a surge of 18.6% after it joined the list of big-name companies topping expectations for both profit and revenue. AMD also said its revenue growth could accelerate in the current quarter to roughly 46% from a year earlier. Another company enmeshed in the AI industry, Super Micro Computer rallied 24.5% after likewise delivering stronger earnings than analysts expected. Nvidia, the chip company that became the poster child of the AI boom rose 5.7% and was the single strongest force lifting the S&P 500 because of its immense size. CVS Health climbed 7.6% after delivering better results for the first quarter than analysts expected and raising its financial forecasts for the full year. The Walt Disney Co. gained 7.5% after saying its 'Zootopia 2' movie helped draw people to its streaming business, parks and cruise ships, while delivering a better-than-expected profit. Uber Technologies drove 8.5% higher after giving a bookings forecast for the spring that was higher than analysts expected. In the bond market, Treasury yields sank as falling oil prices took pressure off inflation. The yield on the 10-year Treasury dropped to 4.35% from 4.43% late Tuesday. That's a notable move for the bond market. Powered by Capital Market - Live News
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