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Stocks jumped out of the gate Wednesday and rallied into the close on reports that the U.S. and Iran are close to agreeing on terms to end the conflict that started in late February.

Encouraging jobs data and big post-earnings gains for several large-cap stocks also kept the wind at the market’s back, with the S&P 500 and Nasdaq Composite notching record closes for the second straight day.

At the close, the broader S&P 500 was up 1.5% at 7,365 and the tech-heavy Nasdaq added 2.0% to 25,838. The blue-chip Dow Jones Industrial Average rose 1.2% to 49,910, but remains 0.6% below its all-time closing high of 50,188 from February.

“Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective Blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran,” wrote President Donald Trump in a Truth Social post.

However, Trump warned that if Iran does not agree to the deal, “the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before.”

While stocks climbed on the news, oil prices cratered. Front-month West Texas Intermediate crude futures plunged roughly 7% to $95.08 per barrel — their lowest close since April 24.

ADP jobs report comes in higher than expected

Ahead of the next jobs report, which will be released Friday morning, ADP’s National Employment Report showed private payrolls rose by 109,000 in April — the strongest pace since early 2025. This was more than the 84,000 new jobs economists expected and the 61,000 private payrolls added in March.

Small and large-sized companies experienced the biggest increases in payrolls last month, but “we’re seeing some softness in the middle,” says Dr. Nela Richardson, chief economist at ADP. “Large companies have resources to deploy, and small ones are the most nimble, both important advantages in a complex labor environment.”

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Education and healthcare led the gains, adding 61,000 new jobs, while business and professional services saw the biggest decline, losing 8,000 positions.

But just because ADP payrolls came in strong, don’t assume that the April jobs report will too. “While this data would typically signal a positive outlook for Friday’s nonfarm payrolls report, recent trends suggest caution, as the two measures have shown notable divergence in prior releases,” say Raymond James economists.

AMD stock soars after beat-and-raise quarter

Advanced Micro Devices (AMD) was one of the best S&P 500 stocks today, soaring 18.6% after the Nvidia (NVDA, +5.8%) rival posted blowout first-quarter results.

For the three months ended March 28, the artificial intelligence (AI) chipmaker said earnings nearly doubled year over year to 84 cents per share, while revenue jumped 38% to $10.3 billion. The results easily beat Wall Street’s estimates, as did AMD’s upwardly revised full-year forecast.

Sentiment also got a lift after Advanced Micro Devices CEO Lisa Su said she now expects the server CPU market to grow by at least 35% annually over the next three to five years — up from her 18% projection last fall — to reach more than $120 billion by 2030. This is “based on the demand signals we are seeing today and the structural increase in CPU compute requirements driven by Agentic AI,” Su explained.

Argus Research analyst Jim Kelleher raised his price target on the top AI stock to $450 from $275, representing implied upside of nearly 7% to current levels.

“Despite the still-dynamic macro and regulatory environment, AMD’s differentiated portfolio and consistent execution position the company for strong growth in 2026 and beyond,” Kelleher says.

And even after AMD’s red-hot run — it’s doubled year to date — its share price “does not fully reflect the company’s long-term revenue and margin growth potential, and its ongoing market-share gains at Intel’s (and potentially at Nvidia’s) expense,” he adds.

Klaviyo has its worst day ever after earnings

AMD was just one of several stocks getting a lift after earnings, but there were a handful of poorly received reports too. Klaviyo (KVYO), for one, slumped 32.3% — its biggest one-day drop since going public in September 2023 — after releasing its first-quarter results.

The marketing software firm beat on both its top and bottom lines and raised its full-year guidance. But Stifel analyst J. Parker Lane wasn’t surprised to see KVYO “take a breather” given “moving parts” that include new carrier fees, higher AI investments and the departure of the company’s chief financial officer.

Still, Lane reiterated a Buy rating on the tech stock, saying “product innovation is accelerating, driven by AI efficiency gains, which is arming Klaviyo with an intriguing basket of products that have, and should continue to benefit expansion.”

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