US close: S&P 500, Nasdaq hit new records after jobs report

(Sharecast News) - Stronger-than-expected jobs data and strong gains in the chip sector pushed the S&P 500 and Nasdaq to more record highs on Friday, with investors seemingly shrugging off ongoing uncertainty in the Middle East.

The Dow finished flat, rising just 0.02% to 49,609.16, but the S&P 500 jumped 0.84% to a new closing high of 7,398.93 and the S&P 500 surged 1.71% to a fresh peak of 26,247.08.

"US stock indices powered ahead with several hitting record highs as strong earnings and Friday's positive jobs data offset risks from the war in the Middle East and US consumer sentiment dropping to a record low," said Axel Rudolph, chief technical analyst at IG.

Friday's primary focus was undoubtedly the news that non‑farm payrolls rose by 115,000 in April, according to the Bureau of Labor Statistics, smashing consensus expectations for a much smaller 62,000 increase. Job gains were led by health care, transportation and warehousing, and retail trade, while federal government employment continued to decline. Revisions left employment in February and March a combined 16,000 lower than previously reported. Additionally, the unemployment rate held steady at 4.3%, as expected.

In other news, however, other data from the University of Michigan showed that US consumer sentiment dropped to a record low of 48.2 in early May, down from April's 49.8 print and falling short of expectations of 49.5.

Meanwhile, the situation in the Middle East continued to evolve after the US and Iran exchanged fire in the vital Strait of Hormuz. Despite the strikes - which each side claimed had been initiated by the other - US president Donald Trump insisted the ceasefire was ongoing and that talks with Iran were going very well.

A senior Iranian official said Tehran would not allow the US to reopen the Strait of Hormuz with what it called an "unrealistic plan", according to the Wall Street Journal. The official also warned that Washington would not be permitted to exit the conflict without paying reparations for the damage it has caused.

Oil prices rose after three straight falls, with Brent 1.2% at $101.29 a barrel and WTI up 0.6% at $95.42 a barrel - though both ended the week down 6.4% overall.

Chip stocks soar

Intel was a prominent riser in the chip sector after reports that the company was working on Apple devices, having reached the terms on a preliminary chip-making agreement. According to the Wall Street Journal, talks between the two parties have been ongoing for over a year.

Sector peers Micron and Sandisk also climbed, with sentiment in the sector helped by recent strong corporate earnings and renewed interest in the AI trade as recent fears about a potential bubble began to fade.

Sector giant Nvidia also rose on the news of a strategic partnership with data centre operator IREN to accelerate the deployment of large-scale AI infrastructure, including a potential investment of up to $2.1bn in IREN. "AI factories are becoming foundational infrastructure for the global economy," said Jensen Huang, Nvidia's founder and chief executive.

Meanwhile, Akamai Technologies shares surged 28% after the cyber security and cloud computing company revealed details of a $1.8bn contract with an unnamed "leading" AI company, as first-quarter results came in line with market expectations.

Dow Jones - Risers

Intel Corp. (INTC) $124.92 11.62%

Cisco Systems Inc. (CSCO) $96.57 4.72%

Unitedhealth Group Inc. (UNH) $379.98 2.77%

Boeing Co. (BA) $237.36 2.74%

Apple Inc. (AAPL) $293.32 1.57%

Goldman Sachs Group Inc. (GS) $936.48 1.15%

Amgen Inc. (AMGN) $331.70 0.38%

Verizon Communications Inc. (VZ) $47.22 0.28%

Procter & Gamble Co. (PG) $146.42 0.25%

Caterpillar Inc. (CAT) $897.45 0.20%

Dow Jones - Fallers

McDonald's Corp. (MCD) $275.75 -2.80%

Salesforce.Com Inc. (CRM) $181.82 -2.43%

Microsoft Corp. (MSFT) $415.12 -1.81%

Home Depot Inc. (HD) $317.45 -1.61%

JP Morgan Chase & Co. (JPM) $302.10 -1.36%

Dow Chemical Co. (DOW) $36.87 -1.21%

American Express Co. (AXP) $316.03 -0.83%

Merck & Co. Inc. (MRK) $111.38 -0.82%

Visa Inc. (V) $318.79 -0.79%

International Business Machines Corporation (CDI) (IBM) $229.76 -0.67%

S&P 500 - Risers

Akamai Technologies Inc. (AKAM) $147.71 27.84%

QUALCOMM Inc. (QCOM) $219.09 16.09%

Micron Technology Inc. (MU) $746.81 14.40%

Monster Beverage Corp (MNST) $86.29 12.67%

Corpay Inc (CPAY) $343.99 12.51%

Gen Digital Inc. (GEN) $22.68 12.44%

Intel Corp. (INTC) $124.92 11.62%

Humana Inc. (HUM) $274.96 11.27%

Advanced Micro Devices Inc. (AMD) $455.19 10.04%

HP Inc (HPQ) $22.68 8.05%

S&P 500 - Fallers

Dxc Technology Company (DXC) $9.43 -21.48%

Fluor Corp. (FLR) $43.31 -15.21%

Mettler Toledo International (MTD) $1,124.46 -14.77%

Motorola Solutions Inc (MSI) $383.99 -11.36%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Expedia Group Inc. (EXPE) $229.98 -8.60%

Fidelity National Information Services Inc. (FIS) $43.49 -7.96%

TripAdvisor Inc. (TRIP) $10.45 -7.32%

Whirlpool Corp. (WHR) $44.96 -6.74%

Tractor Supply Company (TSCO) $30.65 -6.41%

Nasdaq 100 - Risers

QUALCOMM Inc. (QCOM) $219.09 16.09%

Micron Technology Inc. (MU) $746.81 14.40%

Monster Beverage Corp (MNST) $86.29 12.67%

Gen Digital Inc. (GEN) $22.68 12.44%

Intel Corp. (INTC) $124.92 11.62%

Tesla Inc (TSLA) $428.35 4.95%

Cisco Systems Inc. (CSCO) $96.57 4.72%

KLA-Tencor Corp. (KLAC) $1,869.19 3.99%

Nvidia Corp. (NVDA) $215.20 3.79%

Asml Holdings N.V. (ASML) $1,592.02 3.56%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Mercadolibre Inc. (MELI) $1,632.52 -12.40%

Expedia Group Inc. (EXPE) $229.98 -8.60%

Wynn Resorts Ltd. (WYNN) $102.42 -6.02%

DENTSPLY Sirona Inc. (XRAY) $11.00 -4.47%

Align Technology Inc. (ALGN) $168.78 -4.35%

Idexx Laboratories Inc. (IDXX) $560.11 -4.27%

Comcast Corp. (CMCSA) $25.40 -4.07%

Gilead Sciences Inc. (GILD) $131.33 -3.41%

Henry Schein Inc. (HSIC) $70.82 -3.32%