Story perspectives

Record S&P 500 Boosted by AI Chips, Oil Drops

5/6/2026

Summary

AI Chips Rally

The S&P 500 closed at a record 7,259.22 points, up 0.8% on Tuesday.
AI-chip makers drove the rally, with Intel gaining 13% and AMD rising 4% ahead of earnings.
A conditional U.S.–Iran cease-fire helped West Texas Intermediate fall about 3.5% to $103 per barrel.
All 11 S&P sectors advanced, led by materials and technology, while LSEG projected a 28% year-over-year Q1 earnings growth for S&P companies.

Summary

Iran Missile Strike

On May 4, 2026, emerging-market currencies weakened after Iran fired missiles at the United Arab Emirates, ending a cease-fire.
Vanguard FTSE Emerging Markets ETF and iShares Core MSCI Emerging Markets ETF reversed gains as tensions rose.
Colombian peso and interest-rate swaps fell after policymakers kept borrowing costs at 11.25% despite Bloomberg forecasts.
U.S. President Donald Trump announced the United States would begin guiding neutral ships through the Strait of Hormuz.

History

Historical Context

In October 1973 OAPEC, led by Saudi King Faisal, imposed an oil embargo that pushed barrel prices from $3 to about $12—a roughly 300 % jump—sparking a global recession. The 2026 S&P 500 surge, driven by Intel and AMD, occurs amid a renewed U.S.–Iran cease-fire and oil trading near $103 per barrel, reminding investors of the 1973 shock’s lesson that geopolitical flare-ups can reshape markets.

1 of 3

AI Chips Rally

The S&P 500 closed at a record 7,259.22 points, up 0.8% on Tuesday.
AI-chip makers drove the rally, with Intel gaining 13% and AMD rising 4% ahead of earnings.
A conditional U.S.–Iran cease-fire helped West Texas Intermediate fall about 3.5% to $103 per barrel.
All 11 S&P sectors advanced, led by materials and technology, while LSEG projected a 28% year-over-year Q1 earnings growth for S&P companies.

1 / 3