AMD Rally Lifts Nasdaq as Oil Holds Near $100

Summary

AMD surged after forecasting stronger quarterly revenue, helping the Nasdaq and S&P 500 reach fresh record highs while AI-related shares rallied across global markets. The FTSE 100 also moved sharply higher as lower oil prices briefly eased inflation concerns, with Diageo and Next posting strong gains after upbeat trading updates. Oil steadied near $100 a barrel on Thursday as investors weighed the prospects of a US-Iran agreement, while the dollar remained under pressure and the yen strengthened on renewed intervention speculation from Tokyo.

Equities

The FTSE 100 closed 2.2% higher on Wednesday at 10,438.7 points as hopes of a US-Iran agreement to end the Gulf conflict pushed oil prices sharply lower and lifted economically sensitive sectors across the London market. The FTSE 250 rose 1.7% and touched its highest level in two weeks, while energy stocks lagged as Brent crude fell about 8% to roughly $101 a barrel.

Diageo closed 6.4% higher on Wednesday after the drinks group beat third-quarter sales forecasts, helped by resilient demand across key international markets. Next gained 4.4% after the retailer reported stronger-than-expected first-quarter sales and said it planned modest overseas price increases to offset higher costs linked to the Middle East conflict.

Mining, banking, travel and housebuilding shares all moved higher in London trading as lower oil prices eased pressure on inflation expectations. Traders also reduced expectations for further Bank of England rate increases this year, with markets pricing in around 50 basis points of tightening by the end of 2026.

In the US, the S&P 500 climbed 1.46% on Wednesday to a record close of 7,365.09, while the Nasdaq jumped 2.03% to 25,838.94. The Dow Jones Industrial Average added 1.24% and finished just below the 50,000 mark at 49,910.59.

AMD surged almost 19% to a record high after forecasting quarterly revenue above Wall Street estimates, driven by strong demand for its data-centre chips. The upbeat outlook lifted the wider semiconductor sector, with Intel rising 4.5% and the Philadelphia SE Semiconductor index gaining 4.5%, taking its rise for 2026 to 62%.

Nvidia closed 5.7% higher after Corning announced a partnership with the chipmaker to expand US production of optical connectivity products used in AI data centres. Corning also moved sharply higher following the announcement.

Super Micro Computer rallied 24.5% after issuing a stronger-than-expected fourth-quarter revenue and profit forecast. Hut 8 jumped 35% after the AI infrastructure group signed a 15-year lease worth $9.8 billion for its Beacon Point data-centre campus in Texas. Uber added 8.5% after forecasting strong second-quarter bookings, while Walt Disney rose 7.5% after beating quarterly earnings expectations and outlining expansion plans under parks chairman Josh D’Amaro.

Forex & Commodities

The US dollar remained under pressure in Asian trading on Thursday as markets weighed the prospects of a peace agreement between Washington and Tehran. The dollar index slipped to 97.90, close to its lowest level in two weeks and well below last week’s peak near 99.09.

The euro strengthened overnight and traded at $1.176 early on Thursday after lower oil prices eased concerns about imported energy costs across Europe. Sterling held steady at $1.359 ahead of local elections in the UK, with investors watching for any political fallout that could increase pressure on Prime Minister Keir Starmer’s government.

The Japanese yen firmed after renewed speculation that Tokyo intervened in currency markets to support the currency. The dollar fell as low as ¥155.0 on Wednesday, its weakest level against the yen in 10 weeks, before recovering to ¥156.2 early on Thursday. Japan’s top currency diplomat Atsushi Mimura said authorities were not restricted from intervening further, while US Treasury Secretary Scott Bessent is expected to meet Prime Minister Sanae Takaichi next week to discuss speculative yen selling.

Spot gold rose for a third consecutive session early on Thursday, climbing to $4,708 per ounce after gaining sharply on Wednesday. The softer dollar and lower Treasury yields supported bullion prices, although traders remained cautious as negotiations between the US and Iran continued. Benchmark 10-year US Treasury yields have eased this week as markets reduced expectations for further Federal Reserve rate increases.

Oil prices edged higher in Asian trading on Thursday after a sharp sell-off during the previous session. Brent crude rose to $101.8 a barrel, while US West Texas Intermediate traded at $95.53. Both contracts had fallen more than 7% on Wednesday after reports suggested the US and Iran were close to a framework agreement to end the conflict.