U.S. stocks pushed further into record territory Wednesday morning as optimism over Middle East negotiations, lower oil risk and strong corporate earnings outweighed a sharp slowdown in private hiring and heavy selling in SpaceX and AMD.

At 9:58 a.m. ET, the Dow Jones Industrial Average traded near 54,726, up about 640 points. The S&P 500 was near 7,790, roughly 53 points higher, while the Nasdaq Composite stood near 26,714, up approximately 129 points and the Russell 2000 edged up 2.65 points, or 0.09%, to 3,039.63. All three indexes are on pace for their strongest five-day stretch since April 2025.

The rally builds on an extraordinary Tuesday session. The S&P 500 jumped 1.79% to close at 7,736.52 — its first finish above 7,700 — while the Nasdaq Composite gained 2.59% to 26,584.99 and the Dow added 907.47 points, or 1.71%, to 54,085.88.

The catalyst remains the war. Treasury Secretary Scott Bessent’s comments suggesting the United States and Iran may be closing in on an agreement to reopen the Strait of Hormuz drove much of Tuesday’s advance, and President Trump said Wednesday that the strait would reopen “very soon” or Iran would be “hit very hard,” according to CNN. Iranian state media pushed back, reporting that any prospective Iran-Oman understanding on the waterway’s future has no bearing on reopening it.

Overseas markets set a constructive tone. Asian equities climbed overnight as investors weighed earnings and welcomed diplomatic movement between Washington and Tehran, with South Korea’s KOSPI leading gains at nearly 4%.

Market Movers

SpaceX slid about 11% after its first quarterly report since June’s initial public offering showed second-quarter capital spending at $18.4 billion — a sixfold jump driven largely by artificial intelligence buildout. Revenue reached $7.81 billion against a consensus near $6.93 billion, with a loss of nine cents per share. Shares traded near $111.81 premarket, below the $135 IPO price and far off the $225.64 record set on June 16. Additional pressure looms as the post-IPO lock-up begins expiring Thursday.

AMD dropped 8.5% premarket after second-quarter results failed to excite, despite adjusted earnings of $1.66 per share on revenue of $11.54 billion that edged past estimates. Third-quarter revenue guidance of roughly $13 billion came in about in line. The stock took a second hit after Elon Musk said SpaceX would source chips exclusively from rival Nvidia.

Arista Networks rose 12% on a strong quarter — adjusted earnings of $1.02 per share on $3.04 billion in revenue against consensus of 88 cents and $2.82 billion, with margins and third-quarter guidance both ahead of forecasts.

Disney climbed more than 3% after beating fiscal third-quarter estimates. Eli Lilly gained over 6.5% on an earnings and revenue beat and raised full-year 2026 revenue guidance, citing continued demand for Zepbound and Mounjaro. Circle Internet Group advanced more than 5% after naming initial partners for its Arc blockchain and doubling the midpoint of its full-year other revenue outlook to $320 million. Wynn Resorts rose 5% on adjusted earnings of $1.24 per share and revenue of $1.86 billion, both above consensus. CVS Health added more than 2.5% and lifted its adjusted earnings guidance for 2026 to a range of $7.90 to $8.10 from $7.30 to $7.50. Uber declined as soft results outweighed positive robotaxi news.

Commodities

Crude moved higher early Wednesday after Yemen’s Iran-aligned Houthi rebels claimed an attack on a Saudi oil tanker in the Red Sea, reviving supply concerns, though September contracts had settled back to $75.58 a barrel, down 19 cents or 0.25%, by mid-morning. Separately, Indian authorities said an Indian-flagged vessel was struck and sunk by a projectile off Yemen without naming a party responsible, and the Houthis threatened last month to disrupt traffic through the Bab al-Mandeb chokepoint at the Red Sea’s southern end.

Precious metals were the standout. Gold jumped $98.50, or 2.37%, to $4,251.10 an ounce, and silver futures rose 2.59% to $61.81 an ounce as investors sought safe-haven positioning against the Middle East backdrop. Bitcoin traded at $64,296.73, up 0.35%.

SanDisk reports after Wednesday’s close, with analysts looking for quarterly earnings of $34.45 per share on revenue of $8.39 billion. Shopify results are also due. Friday brings a fresh reading on the labor market.

JBizNews Desk | Wall Street

© JBizNews.com All Rights Reserved. Reproduction or distribution without written permission is prohibited.