Market Report, 2026-05-06

The rally in stocks extended dramatically on Wednesday as investors saw hope that the U.S.-Iran war may be nearing its end. The situation remains fluid and is evolving quickly. The two sides weighed a fresh proposal to end the war.

For the United States, the President is searching for an exit from a conflict that has spiked energy prices and made affordability a bigger issue, one of the key challenges to address in his second term. For Iran, Chinese diplomats have urged officials to negotiate and try to end the war quickly. With China absorbing 80% of Iranian oil exports, the gesture carries significant weight in the current political calculus.

In addition to geopolitics, today’s private payroll number was also very encouraging, as employment picked up significantly from last month and meaningfully exceeded economists’ forecasts.

The Dow Jones Industrial Average is only a touch away from reaching another all-time high, having ended the day at 49,911, up 612 points. The Nasdaq posted a 2.08% return to 28,599. The S&P 500 rose 1.46% to 7,365. Utilities and energy were the only two sectors to suffer losses, while all other sectors ended the day in the green. Technology and industrials, the center of the AI investment theme, demonstrated sharp upside.

The bond market also joined the rally. The 5-year and 10-year benchmark interest rates dropped 7 basis points to 4% and 4.35%, respectively. Gold prices also rose 3% and climbed above the $4,700 mark.

The weekly jobless claims data will become available tomorrow, along with some consumer- and labor-related metrics. Adams Wealth Advisors will continue to update you on the market.