Stocks climbed for the second consecutive session on Wednesday, with the S&P 500 and Nasdaq both reaching new records, driven by a fresh wave of AI-related deals and optimism about a possible end to hostilities in the Strait of Hormuz.
The biggest market headline was a multiyear commercial and technology partnership between Nvidia and Corning, focused on expanding domestic manufacturing of fiber and optical connectivity. Under the deal, Nvidia has the option to purchase 15 million shares of Corning at an exercise price of $180 per share. Nvidia also holds a pre-funded warrant to buy up to 3 million additional shares at a total purchase price of $500 million. Corning stock jumped more than 10 percent on the news, trading to roughly $183 — putting the 15 million-share warrant immediately in the money.
Advanced Micro Devices added fuel to the rally with a bullish outlook on the CPU market, reinforcing investor confidence that demand for AI data center infrastructure remains strong. AMD's comments built on a broader narrative that chipmakers and their suppliers are entering a sustained buildout cycle, not a short-term spike.
Amazon also moved closer to a significant milestone. According to MarketWatch, the company's stock needs to rise less than 2 percent for its market capitalization to cross $3 trillion — a threshold only four other companies have ever reached. Apple, Microsoft, Nvidia, and Alphabet have each touched that level at various points, making the club exceptionally small.
The aerospace sector posted some of the day's strongest gains on separate news. Reports indicated the U.S. and Iran are moving closer to a deal that would reopen the Strait of Hormuz, which has been closed during the ongoing conflict. President Donald Trump warned that without an agreement, military operations would resume "at a much higher level and intensity than before," but the signal that talks are progressing was enough to shift sentiment.
West Texas Intermediate crude prices moved back into the mid-$90s following the news, while interest rates edged lower. Boeing and Honeywell both rallied on the expectation that a reopened Strait would ease the jet fuel shortage that has been contributing to airline flight cancellations.
After the close Wednesday, Arm Holdings, Coherent, Axon Enterprise, and Dutch Bros were all scheduled to report earnings. McDonald's and Datadog were on deck before Thursday's opening bell. Investors were also watching for Challenger job cut data, weekly jobless claims, and the New York Fed's one-year inflation expectations survey later in the week.
