Chips and hopes of Peace drive Stocks to Record Highs

MPC Markets Morning Call · May 7, 2026 · 11m

Wall Street surged to fresh records on Wednesday as the US presented Iran with a one-page memorandum of understanding to end the war, sending oil tumbling nearly 8% and risk appetite roaring back. The S&P 500 jumped 1.5% to 7,363.68, the Nasdaq soared 2% to 25,838.94, and AMD’s 18.6% surge led a broad AI chip rally. Trump said a deal has a “very good chance” of happening and paused Project Freedom after Iran’s IRGC signalled “safe passage” through Hormuz. Brent crashed 7.8% to $101.33 while gold jumped 3%. The VIX fell to its lowest since before the war. ASX futures point to a 1% gain.