Wall Street Climbs on Intel Surge as Iran War Moves Oil Markets/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Technology stocks pushed Wall Street higher Friday after Intel posted a major earnings surprise, sending its shares sharply upward. At the same time, oil prices continued to swing as investors watched the fragile Iran ceasefire and shipping disruptions in the Strait of Hormuz. Markets also reacted to expectations that the Federal Reserve may move closer to cutting interest rates later this year.
Wall Street Intel Rally Quick Looks
- Intel shares jumped nearly 24% after a strong profit report
- The S&P 500 moved above its recent all-time high
- Nasdaq rose 1% as tech stocks led the market higher
- Oil prices remained volatile due to Iran war uncertainty
- Brent crude traded around $105 per barrel
- Investors are watching possible Fed rate cuts later this year
- Kevin Warsh’s Fed nomination gained momentum after the Powell probe ended
Deep Look
Intel Powers Tech Rally on Wall Street
NEW YORK — Technology stocks lifted Wall Street higher Friday after Intel delivered a powerful earnings surprise that gave investors fresh confidence in the artificial intelligence boom and broader corporate profits.
The S&P 500 gained 0.4% and briefly moved above the all-time high it had set earlier this week, while the Nasdaq composite climbed 1% as tech shares outperformed the broader market.
The Dow Jones Industrial Average moved in the opposite direction, falling 168 points, or 0.3%, by late morning trading.
Even though most stocks inside the S&P 500 were lower, Intel’s massive jump helped drive the overall market higher.
The chipmaker surged 23.8%, putting it on track for its strongest single-day performance since 1987.
The rally followed a much stronger-than-expected first-quarter profit report that surprised analysts and boosted investor confidence.
Intel Says AI Demand Is Driving Growth
Intel’s earnings report highlighted the continued strength of artificial intelligence spending across the technology sector.
CEO Lip-Bu Tan said the next wave of AI development is increasing demand for Intel’s chips and related products.
The company also issued a spring profit forecast that came in above Wall Street expectations, adding even more fuel to the stock’s rally.
Strong earnings from major technology companies have become one of the biggest drivers behind the recent stock market surge.
Over the past month, the S&P 500 has climbed more than 12%, pushing indexes back to record territory despite ongoing global uncertainty.
Investors continue to view AI-related companies as some of the strongest long-term growth opportunities in the market.
Oil Prices Swing as Iran Tensions Continue
While stocks climbed, oil markets remained highly unstable as traders watched the uncertain ceasefire between the United States and Iran.
The temporary truce has reduced fears of immediate escalation, but tensions remain high around the Strait of Hormuz, one of the world’s most important oil shipping routes.
Tankers are still facing disruptions as the U.S. naval blockade and Iranian restrictions continue affecting traffic through the narrow waterway.
That uncertainty has kept crude prices moving sharply throughout the week.
On Friday morning, Brent crude for June delivery moved between roughly $103 and $107 per barrel before settling near $105.04, down slightly.
July Brent contracts, where much of the current market activity is concentrated, fell 0.4% to $98.96.
A potentially positive sign came after Iran’s state-run IRNA news agency confirmed that Foreign Minister Abbas Araghchi was traveling to Pakistan for diplomatic talks.
Markets viewed that as a signal that negotiations may still be moving forward.
Procter & Gamble Adds Support
Consumer giant Procter & Gamble also helped support the market after posting stronger profits than analysts expected.
Its stock rose 3.9%.
CEO Shailesh Jejurikar said the company saw broad-based growth across multiple regions and product categories, including major household brands such as Bounty paper towels and Tide detergent.
The strong results gave investors confidence that consumer demand remains relatively stable despite inflation concerns and higher fuel prices.
Positive earnings from both tech and consumer staples helped balance weaker performances elsewhere in the market.
Charter Communications Drops Sharply
Not every earnings report impressed investors.
Charter Communications fell 22.5% after reporting weaker-than-expected quarterly profit.
The company also revealed it lost 120,000 internet customers during the quarter, a larger decline than some analysts had forecast.
That raised concerns about customer retention and competitive pressure in the broadband business.
Hartford Insurance Group also slipped 1% after its profit growth missed analyst expectations.
The mixed earnings picture shows investors remain highly selective, rewarding strong results aggressively while punishing disappointments quickly.
Treasury Yields Ease as Consumer Sentiment Stays Weak
In the bond market, Treasury yields moved lower after new data showed U.S. consumer sentiment remains weak.
A University of Michigan survey found that confidence among consumers stayed soft in April across political parties, income levels, age groups, and education levels.
Sentiment improved slightly after the Iran ceasefire announcement earlier this month, but overall confidence remains under pressure from inflation and economic uncertainty.
The yield on the 10-year Treasury note fell to 4.30% from 4.34% late Thursday.
Lower Treasury yields often reflect expectations for slower growth or future Federal Reserve interest rate cuts.
Fed Rate Cut Hopes Return
Investors are increasingly betting that the Federal Reserve may resume cutting interest rates later this year.
That possibility gained more attention after the Justice Department ended its investigation into current Fed Chair Jerome Powell.
The decision clears the way for Kevin Warsh, President Donald Trump’s nominee to replace Powell, to move closer to Senate confirmation.
Senator Thom Tillis had previously said he would oppose Warsh’s confirmation until the Powell investigation was resolved.
Now that obstacle has been removed.
Warsh is widely seen as more open to lower interest rates, something Trump has strongly supported for months.
The White House believes lower borrowing costs could strengthen the economy ahead of the November midterm elections.
Global Markets Show Mixed Performance
Outside the United States, stock markets were mixed across Europe and Asia.
Japan’s Nikkei 225 rose 1%, helped by strength in technology and export-focused companies.
France’s CAC 40 fell 0.7%, one of the larger declines among major European indexes.
Investors around the world continue balancing optimism around corporate profits with uncertainty surrounding energy prices, inflation, and global conflict.
Markets Watching Two Big Forces
For investors, Friday’s market story came down to two major forces: technology growth and geopolitical risk.
Intel’s earnings reinforced confidence in the AI-driven tech rally that has pushed markets to record highs.
At the same time, oil prices remain highly sensitive to every new development involving Iran, the Strait of Hormuz, and U.S. military actions in the region.
If peace talks advance, markets could see more stability.
If tensions rise again, oil prices and inflation concerns could quickly return to the center of investor attention.
For now, Wall Street is betting that strong profits can outweigh global uncertainty — at least for another day.
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