U.S. stocks edged to fresh record highs on Wednesday, according to the Associated Press, as oil prices tumbled and the ceasefire between the United States and Iran appeared to remain intact despite limited U.S. “self-defense” strikes in southern Iran.

The S&P 500 rose by less than 0.1% to 7,520.36, adding to its all-time high set the previous day. The Dow Jones Industrial Average climbed 182 points, or 0.4%, to 50,644.28, and the Nasdaq composite gained 0.1% to 26,674.73. All three indexes closed at record levels.

The market rally has been sustained by surprisingly strong corporate earnings for the start of 2026, even as U.S. consumers report persistent discouragement about inflation and the economy. Retailers Bath & Body Works and Abercrombie & Fitch both surged after reporting quarterly profit that beat analysts’ forecasts, rising 9.7% and 8.9% respectively. Norwegian Cruise Line Holdings climbed 6.1%, and United Airlines added 6.3%, as lower oil prices raised hopes that large fuel bills would no longer drag on profits.

On the losing side, oil-and-gas producers sank as crude prices fell. Exxon Mobil and Chevron each slipped 1.3%, and Halliburton dropped 3.6%. Dick’s Sporting Goods fell 6% despite a profit that narrowly exceeded expectations, as analysts flagged weak revenue quality.

Oil prices posted their biggest single-day drop in weeks. Brent crude, the international benchmark, fell 4.6% to $92.25 a barrel. U.S. crude settled at $88.68, down 5.5%. The declines reflect growing confidence that the U.S.-Iran ceasefire will hold long enough to allow negotiations to reopen the Strait of Hormuz, a chokepoint through which about a fifth of global oil shipments pass. The strait has been effectively closed since late March when hostilities between the U.S. and Iran escalated, sending oil prices above $119 at their peak.

In the bond market, Treasury yields eased as lower oil prices reduced inflation expectations. The yield on the 10-year Treasury note ended at 4.50%, according to FRED data, down from 4.67% roughly a week ago. Lower yields relieve pressure on mortgage rates and corporate borrowing costs, including financing for the massive artificial-intelligence data centers that have been a pillar of recent U.S. economic growth.

The AI boom continued to drive outsized gains in the semiconductor sector. South Korea’s Kospi jumped 2.3% after SK Hynix, a major manufacturer of high-bandwidth memory chips, soared 9.3%. In the U.S., Micron Technology rose another 3.6%, adding to its more-than-tripled gain already in 2026. UBS analysts said Tuesday the stock could rise further due to “fundamentally improved demand for computer memory” from AI applications. Micron’s climb a day earlier vaulted it past the $1 trillion market capitalization mark.

Abroad, markets were mixed across Europe and Asia. Japan’s Nikkei 225 fell 0.3% while Australia’s ASX 200 declined 0.2%. European indexes were marginally higher.