US stocks rose on Wednesday as traders reacted to strong technology earnings, a sharp drop in oil prices, and reports of progress toward a possible US-Iran deal. The rally pushed major indexes higher, while energy shares fell as crude prices dropped. Oil also moved lower after EIA data showed declines in crude, gasoline, and distillate inventories.

Tech Stocks Lead Wall Street Higher

The US stock market trends showed strong buying in technology shares. The NASDAQ and S&P 500 moved higher as investors kept buying companies tied to artificial intelligence infrastructure.

AMD led the rally after its strong outlook lifted confidence in AI-related demand. The company’s shares jumped after management pointed to fresh opportunities in server CPUs and AI inference workloads.

Intel, Arm Holdings, Qualcomm, and NVIDIA also gained as the chip rally widened. The Philadelphia SE Semiconductor Index advanced and touched a fresh record, supported by renewed demand across the sector.

AMD said the server CPU addressable market could grow by more than 35% each year through 2030. That estimate raised market attention on broader AI compute demand beyond GPUs.

AMD Rally Drives Chip Momentum

AMD shares hit a record high as investors focused on its stronger earnings outlook and rising AI infrastructure demand. At least 20 brokerages raised their price targets on the stock, according to LSEG data.

Michael O’Rourke, chief market strategist at JonesTrading, said, “Success invites competition, and while NVIDIA held a monopoly on the AI chip market for two years, other players have been catching up.”

Matt Britzman of Hargreaves Lansdown said AMD’s story now includes a wider compute opportunity. He said CPUs and GPUs both matter as AI workloads become more demanding.

Super Micro also rose after forecasting stronger fourth-quarter revenue and profit. The move helped AI server stocks gain, even as investors tracked legal concerns linked to chip shipments to China.

Oil Prices Drop on Iran Deal Hopes

Oil prices fell sharply as traders watched reports that the United States and Iran could move closer to a deal. Brent crude dropped near $102 a barrel, while WTI crude traded near $95 after steep losses.

President Donald Trump said the US could pause some military activity while talks continue. However, he also warned that the US could resume attacks “at a much higher level and intensity” if Iran rejects a deal.

Energy stocks moved lower as oil prices retreated. Exxon Mobil, Chevron, ConocoPhillips, and Shell fell as traders reduced exposure to the sector.

The Energy Select Sector SPDR ETF also declined. The move showed a clear split in the market, with technology shares rising while oil-linked stocks dropped.

EIA Data Shows Inventory Draws

The Energy Information Administration said US crude inventories fell by 2.3 million barrels to 457.2 million barrels in the week ended May 1. Analysts had expected a larger 3.3 million-barrel draw.

Crude stocks at Cushing, Oklahoma, fell by 648,000 barrels. Gasoline inventories dropped by 2.5 million barrels to 219.8 million barrels, beating expectations for a 2.1 million-barrel decline. Distillate inventories, which include diesel and heating oil, fell by 1.3 million barrels to 102.3 million barrels. Analysts had expected a larger 2.4 million-barrel drop.

Refinery crude runs fell by 42,000 barrels per day. However, refinery utilization rose by 0.5 percentage points to 90.1%. Net US crude imports also rose by 1.42 million barrels per day.

Airlines and Bonds React to Lower Oil

Airline stocks gained as lower oil prices eased pressure on fuel costs. United Airlines, Delta Air Lines, Southwest Airlines, and JetBlue moved higher during the session.

The US Global Jets ETF rose as travel shares recovered from recent pressure. Airlines had faced higher costs after crude prices climbed during the Middle East conflict.

Bond yields also moved lower as traders assessed the drop in oil prices. The 10-year Treasury yield eased to about 4.3%, while the 30-year yield slipped below 5%.

The market also lowered expectations for another Federal Reserve rate hike in 2026. Traders linked the move to easing oil prices and reduced fears of higher inflation.

Overall, US stocks gained as AI-related shares led the rally, while oil prices and energy stocks fell on hopes of a possible US-Iran deal. However, traders still watched crude inventory data, bond yields, and geopolitical updates for the next market direction.

Also Read: US Stock Market Today: NASDAQ Hits Fresh Record High as Oil Pullback Supports Wall Street Market Rebound