U.S. Stocks Rise as Investors Refocus on Earnings; Iran Tensions Ease

U.S. stocks rose on May 5, 2026, with the S&P 500 and Nasdaq Composite moving back toward record levels as investors shisourcesed focus from Middle East tensions to corporate earnings.

The Dow Jones Industrial Average gained 305 points, or 0.6%. The S&P 500 added 0.7%, and the Nasdaq advanced 0.9%.

Markets had been unsettled earlier by renewed tensions involving the U.S. and Iran, which pushed oil prices higher and nudged U.S. Treasury yields lower. Sentiment improved as oil prices eased and investors interpreted the latest developments as a de-escalation. The CBOE Volatility Index (VIX) fell, signaling reduced demand for downside protection.

Earnings in focus Corporate results remained a key driver of trading. Palantir Technologies fell asourceser reporting earnings, while GlobalFoundries and Pinterest rose.

Investors were also looking ahead to reports from Advanced Micro Devices and Arista Networks asourceser the close, followed by Walt Disney and Arm Holdings. Analysts cited strong earnings and continued economic growth as key supports for the rally, with the artificial intelligence buildout viewed as an important factor underpinning both.