Market Movements and Reactions
On May 7, 2026, traders were busy at the New York Stock Exchange, watching developments related to the ongoing situation between the United States and Iran. Oil prices, after a significant drop, managed to rebound to new intraday highs before slipping again on Thursday.
The S&P 500 index was last noted at a decline of 0.4%. This trend was mirrored by Amazon and key semiconductor companies like Broadcom and Micron Technology, while the Nasdaq Composite also decreased by 0.2%. Meanwhile, tech-focused indices hit record highs during the session, but the Dow Jones Industrial Average faced a drop of 356 points, translating to a 0.7% decline.
Oil prices had dipped below $100 early on but saw a recovery. West Texas Intermediate Crude Oil Futures gained about 1%, reaching over $95 per barrel, while Brent crude futures climbed slightly above $101 per barrel.
On Wednesday, stock prices increased amid falling oil costs following reports from Axios about a potential deal between the U.S. and Iran to resolve the war, based on information from several officials. The White House suggested that they are nearing a 14-point memorandum aimed at ending hostilities and providing a framework for nuclear discussions.
An Iranian Foreign Ministry spokesperson indicated on Wednesday that Iran was still reviewing the U.S. proposal, and no final decision had been reached as of Thursday, according to Iranian state media.
Besides the optimism regarding the Middle East, an impressive earnings season and a continuing demand for AI investments are credited with driving stock increases, according to Ross Mayfield, an investment strategist at Baird. He reflected on the market’s shift in sentiment: “We quickly went from ‘everyone’s bearish’ to ‘hey, everyone’s bullish again.’ The market might be in an overbought state but those concerns are minor compared to actual challenges. We may be heading toward a downturn, yet it feels a bit unusual.”
Fortinet emerged as a notable player in the market on Thursday, seeing a 22% surge after the company updated its profit forecasts for the year. Meanwhile, Peloton’s shares increased by 5% following third-quarter sales that surpassed expectations.
