Intel’s best day since 1987 leads the US stock market to more records

Intel’s Strong Profits Drive U.S. Markets to Fresh Records Amid Middle East Tensions

A surge in Intel shares following exceptional quarterly results propelled U.S. markets to new highs Friday, while oil prices fluctuated as investors monitored developments in the ongoing conflict between the United States and Iran.

The S&P 500 rose 0.8% to 7,165.08, setting a new all-time high after breaking records earlier in the week. The tech-heavy Nasdaq composite jumped 1.6% to 24,836.60, also reaching unprecedented levels, while the Dow Jones Industrial Average slipped slightly, falling 79.61 points to 49,230.71.

Intel emerged as the day’s standout performer, soaring 23.6% in its best single-day performance since 1987. The chipmaker’s shares reached an all-time high, surpassing even its peak during the dot-com boom of 2000. CEO Lip-Bu Tan pointed to growing demand for Intel’s products driven by the expanding artificial intelligence sector. The company’s quarterly results significantly exceeded analyst expectations, and its forecast for the coming quarter also topped estimates.

This impressive performance by Intel exemplifies the broader trend of strong corporate earnings that has fueled Wall Street’s recent rally. The S&P 500 has climbed nearly 13% in just under a month, bolstered by positive financial results across various sectors.

Beyond corporate earnings, market sentiment has been influenced by the tenuous ceasefire between the U.S. and Iran. While hostilities have temporarily subsided, tensions remain high, affecting global oil shipping routes. The strategically vital Strait of Hormuz, a critical passageway for oil tankers delivering crude from the Persian Gulf, has seen disrupted traffic patterns.

Some encouraging diplomatic signals emerged Friday, with Iran’s top diplomat heading to Pakistan, where officials have been working to arrange a second round of ceasefire negotiations. The White House later confirmed that President Donald Trump is sending envoys Steve Witkoff and Jared Kushner to Pakistan to meet with Iran’s foreign minister.

Oil prices reflected this uncertainty, with Brent crude for June delivery settling at $105.33 per barrel, up 0.2% after volatile trading throughout the day. The more actively traded July contracts for Brent fell 0.2% to $99.13.

Other notable corporate performers included Procter & Gamble, which gained 2.5% after reporting better-than-expected quarterly profits. CEO Shailesh Jejurikar highlighted broad-based growth across regions and product categories, including household staples like Bounty paper towels and Tide detergent.

On the negative side, Charter Communications plummeted 25.5% after disappointing quarterly results, including the loss of 120,000 internet customers. Hartford Insurance Group also fell 3.7% following profit growth that fell short of analyst projections.

In the bond market, Treasury yields eased as investors increased bets on potential Federal Reserve interest rate cuts later this year. The yield on the benchmark 10-year Treasury dipped to 4.30% from 4.34%.

Political developments also caught market attention as the U.S. Justice Department concluded its investigation of current Federal Reserve Chair Jerome Powell, potentially clearing the path for Trump nominee Kevin Warsh to assume the position. Warsh’s confirmation had been effectively blocked by Republican Senator Thom Tillis, who had opposed the nomination until the investigation was resolved. Trump has consistently advocated for lower interest rates, which would reduce costs for mortgages and other loans.

Consumer sentiment remains subdued, according to the University of Michigan’s survey, which showed weaker sentiment in April across demographic and political lines, though it improved slightly following the ceasefire announcement.

Global markets presented a mixed picture, with Japan’s Nikkei 225 rising 1% while France’s CAC 40 fell 0.8%.