Stock Market Today: Nasdaq, S&P 500 Hit New Highs On U.S.-Iran Hopes; Cathie Wood Sells Advanced Micro, CoreWeave (Live Coverage)

Why It Matters

The rally underscores how quickly markets react to de‑escalation of geopolitical tensions, while Wood’s divestments signal a possible shift in tech‑focused portfolio strategies amid volatile AI valuations.

Key Takeaways

• S&P 500 and Nasdaq close at record highs amid Iran peace hopes
• AMD jumps >18% after AI‑chip sales beat expectations
• Cathie Wood’s ARK funds sell $5.9M AMD, $12.5M CoreWeave
• Oil drops 6.6% to $95.5/barrel; 10‑yr yield at 4.354%
• Disney and CVS beat forecasts, lifting Dow gains

Pulse Analysis

The market’s upbeat tone on Wednesday was largely driven by diplomatic headwinds easing in the Middle East. Reports that U.S. and Iranian negotiators were closing in on a framework to end hostilities in the Strait of Hormuz lifted risk‑off sentiment, prompting oil to tumble 6.6% to roughly $95.5 a barrel and pushing the 10‑year Treasury yield down to 4.354%. With energy costs receding, investors redirected capital into equities, propelling the S&P 500 and Nasdaq to new closing highs and pulling the Dow out of correction territory.

At the heart of the tech rally, AMD delivered an earnings beat that sent its shares soaring more than 18%. The chipmaker’s AI‑focused data‑center products posted robust demand, driving Q1 revenue to $10.25 billion—well above the $9.9 billion consensus. Analysts view the performance as a bellwether for the broader semiconductor sector, where AI‑driven workloads are reshaping growth trajectories. The surge helped the Nasdaq, a tech‑heavy index, extend its winning streak and reinforced investor confidence in AI‑related hardware as a catalyst for future earnings.

Meanwhile, ARK Invest’s Cathie Wood signaled a tactical retreat from two high‑profile tech bets, selling $5.9 million of AMD and $12.5 million of CoreWeave. The moves suggest a rebalancing away from stocks that may be nearing overvaluation despite strong fundamentals. Wood’s adjustments come as other heavyweight names like Disney and CVS Health posted earnings beats, providing a diversified lift to the Dow. The juxtaposition of aggressive earnings beats and selective divestments highlights a market environment where investors are rewarding solid performance while pruning exposure to potentially frothy AI plays.