NEW YORK - The S&P 500 and the Nasdaq surged to record-high closes on May 6, buoyed by signs of a resolution in the Middle East conflict, while strong earnings from Advanced Micro Devices sparked a rally in chipmakers and other AI-related stocks.

Advanced Micro Devices soared almost 19 per cent to an all-time high after forecasting quarterly revenue above expectations on robust demand for its data centre chips.

Shares of rival Intel gained 4.5 per cent, while the PHLX chip index rallied 4.5 per cent, bringing its 2026 gain to 62 per cent.

Global stocks surged and oil prices slumped after Iran said it was reviewing a new US proposal, while sources said Washington and Tehran were closing in on a one-page memorandum to end the war, while leaving tricky issues such as Iran’s nuclear programme for later.

Brent crude futures fell about 8 per cent to US$101 a barrel, helping ease concerns about inflationary pressures.

Wall Street has surged in recent weeks, with investors looking beyond the Middle East conflict and instead focusing on a strong first-quarter earnings season that has been driven by AI-related companies.

S&P 500 companies are on track for their strongest profit growth in more than four years. Over 80 per cent of S&P 500 companies that reported through May 1 have exceeded analysts’ profit estimates, according to LSEG I/B/E/S data.

“The economy is chugging along just fine. There’s no real danger signs of something that’s even close to approaching a downturn. And so with that as a backdrop, you have to own stocks,&rdq...