Market Closes Higher Amid Easing Oil Prices and Peace Optimism

The stock market closed mostly higher on Wednesday as optimism around a possible U.S.–Iran peace framework and easing oil prices helped lift investor sentiment.

Overall, S&P 500 was flat at 7,520, while NASDAQ was up 0.1% to 26,675.

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Here is the one-year chart of Meta Platforms (META) as of May 4, 2026, when the stock was at $610.

Meta Platforms is significantly ramping up investment in AI infrastructure, with costs rising faster than revenue.

Last quarter, profits increased just 14% on a healthy 33% rise in revenue. Expenses grew 35% year over year compared with 33% revenue growth, while capital expenditures (CapEx) reached about 35% of revenue.

In the earnings call, management highlighted Meta’s expanding AI initiatives, including the launch of the Muse family of AI models, the first Muse Spark model, and an upgraded Meta AI assistant under its new Meta Super Intelligence Labs. These next-generation AI systems are designed to make Meta’s apps smarter, enhance personalized content and advertising, and support more advanced AI assistants and automation tools.

Despite continued investor caution on heavy AI spending, Meta raised its 2026 CapEx guidance from ~$125 billion to ~$135 billion. Now, profits are expected to climb just 7% this year.

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