Brent crude settled below $90 a barrel on Wednesday for the first time since late February, capping a five-week slide that has tracked the Iran-Israel ceasefire and a wave of robust corporate earnings that pushed Wall Street within striking distance of erasing all of its wartime losses.

The global benchmark closed at $89.40 in London, down $1.85 on the day and roughly 28 percent below the $125 peak reached during the worst of the Strait of Hormuz crisis in late March. West Texas Intermediate slipped to $85.10. In New York, the S&P 500 climbed 1.1 percent to 5,488, leaving the index only about 0.7 percent below its pre-war close on Feb. 28. The Nasdaq Composite added 1.6 percent, and the Dow Jones Industrial Average rose 312 points.

“Every box the market needed checked has been getting checked,” said Priya Mehrotra, chief U.S. equity strategist at Northbridge Securities. “Oil is falling without breaking anything, the ceasefire is holding into its fourth week, and the earnings beats are coming from the parts of the index that actually move it.”

With more than 82 percent of S&P 500 companies having reported first-quarter results, blended earnings growth is tracking at 9.4 percent year over year, according to data compiled by FactSet — well above the 6.1 percent analysts had penciled in heading into earnings season. Sales growth has come in at 5.8 percent. Communications services, financials and consumer discretionary have led the upside; the energy sector, predictably, has lagged.

The decline in crude has reflected both the steadier security picture in the Gulf and the lingering effect of OPEC+’s April 1 production hike of roughly 1.5 million barrels a day, announced at an emergency Vienna session as oil neared $130. United Nations observers deployed to the Strait of Hormuz after the April 15 ceasefire have logged daily tanker traffic at near-normal levels for three straight weeks, and insurance war-risk premiums on Gulf transits have fallen by more than half from their April highs, according to brokers at Lloyd’s of London.

“Physical flows look almost ordinary again,” said Marco Della Valle, a Geneva-based oil consultant who advises European refiners. “The fear premium that was still embedded in the front of the curve in mid-April has largely come out. What’s left now is a market that has to digest extra OPEC barrels at the same time refiners are heading into spring maintenance.”

Wednesday’s earnings docket added to the optimism. Walt Disney Co. beat on both revenue and adjusted earnings per share, reporting subscriber gains in its streaming bundle and stronger parks attendance than analysts had expected. Shares rose 4.2 percent in regular trading. Uber Technologies posted a record quarterly bookings figure and lifted its full-year guidance, sending the stock up 6.7 percent. Shopify and Anheuser-Busch InBev also topped consensus.

After Tuesday’s bell, Advanced Micro Devices reported data-center revenue up 71 percent from a year earlier and raised its second-quarter outlook, the latest sign that the post-moratorium AI buildout has not slowed. The company’s shares jumped 8 percent in extended trading and helped lift semiconductor peers Wednesday. The Philadelphia Semiconductor Index gained 2.4 percent. The April 22 defeat of the federal AI-moratorium bill in the House Ways and Means Committee removed an overhang that had weighed on chip and hyperscaler shares through much of the spring, even as similar bills advance in Albany and Sacramento.

Treasury yields drifted lower as traders pulled forward bets on Federal Reserve rate cuts. The two-year yield ended at 3.81 percent, down four basis points; the 10-year fell to 4.07 percent. Futures markets are now pricing roughly 60 percent odds of a quarter-point cut at the Fed’s July meeting, up from 38 percent a week ago, according to CME FedWatch data.

“The disinflation case got a lot easier once the oil shock reversed,” said John Reilly, a senior macro analyst at Citi. “Headline CPI in the next two prints is going to look very different than it did in March. The Fed won’t pre-commit, but they don’t need to fight a war and an energy spike anymore.”

The dollar weakened against most major currencies, with the ICE Dollar Index slipping 0.3 percent to 102.4. The euro rose to $1.094 and the Japanese yen strengthened to 148.20 per dollar. Gold fell $14 to $2,318 an ounce as haven demand continued to ebb. Bitcoin traded near $71,400, little changed on the day.

European bourses also finished higher. The Stoxx Europe 600 closed up 0.8 percent, led by banks and luxury exporters; Germany’s DAX rose 1.0 percent. In Asia, Japan’s Nikkei 225 climbed 1.4 percent overnight, and the Hang Seng added 0.9 percent. Saudi Arabia’s Tadawul index extended its rebound for a fifth straight session, though it remains about 6 percent below its pre-war level.

Risks have not vanished. Analysts pointed to upcoming refunding announcements from the Treasury, the political battle over the wartime supplemental spending bill in Washington and the slow pace of physical reconstruction inside Iran and Yemen as potential sources of volatility. Layla Hassan, a Beirut-based regional analyst at Levant Strategy Group, cautioned that Gulf shipping costs would not return all the way to pre-war norms “until at least the next quarter, and that assumes the calendar of small violations stays as quiet as it has been.”

Markets are looking next to Friday’s release of April U.S. nonfarm payrolls and to earnings from Coinbase, Honda Motor and Saudi Aramco. Traders said a soft jobs print combined with another contained oil session would likely push the S&P 500 back to a fresh closing high before the end of the month.