U.S. stock markets pushed higher on Friday, with both the S&P 500 and Nasdaq Composite reaching new record highs, as a stronger-than-expected jobs report fueled investor optimism. The rally was further supported by gains in technology heavyweights Nvidia and Apple, each advancing over 2%, and a continued surge in the semiconductor sector, which also hit a record on sustained demand for AI-related hardware.
Approaching midday in New York, the S&P 500 rose 0.79% to 7,395.24, while the Nasdaq Composite advanced 1.39% to 26,165.36, according to LSEG data via Reuters. The Dow Jones Industrial Average edged up 0.05% to 49,624.16. In commodities, Brent crude climbed 1.59% to $101.65, and the 10-year Treasury yield held steady at 4.346%.
The jobs data provided a fresh catalyst for risk-taking. April nonfarm payrolls increased by 115,000, surpassing consensus forecasts, while the unemployment rate remained unchanged at 4.3%, according to the Labor Department's Bureau of Labor Statistics. Gains were seen in health care, transportation and warehousing, and retail trade, though federal government payrolls continued to shrink.
Market participants interpreted the numbers as a sign of economic resilience without signaling overheating. Robert Pavlik, senior portfolio manager at Dakota Wealth, described the 115,000 gain as “not gangbusters” but noted it suggests the economy is not “collapsing.” Tim Holland, chief investment officer at Orion Advisor Solutions, highlighted the consecutive gains in March and April as evidence of U.S. economic strength, though he added that the data does not provide much ammunition for Federal Reserve rate cuts.
Earnings and artificial intelligence themes continued to underpin the rally. RBC Capital Markets raised its S&P 500 year-end target to 7,900 from 7,750, citing steady earnings growth and strength in AI-related sectors as tailwinds. The revised target implies a 7.7% gain from Thursday's close.
In individual stock moves, Akamai Technologies surged on news of a $1.8 billion cloud infrastructure agreement. Monster Beverage rallied after surpassing profit and revenue forecasts. However, CoreWeave declined despite more than doubling revenue, as losses and a weaker current-quarter forecast weighed on sentiment.
Despite the market's upbeat tone, a cautionary note came from consumer sentiment data. The University of Michigan's consumer sentiment index fell to a record low of 48.2 in early May, down from 49.8 in April. Joanne Hsu, director of the Surveys of Consumers, cited households “buffeted by cost pressures” as gasoline prices continue to erode purchasing power.
Looking ahead, investors will focus on next week's consumer price index data, along with producer prices and retail sales figures. Geopolitical developments, including the Iran war and a potential Trump-Xi meeting, also remain on the radar. Michael Arone at State Street Investment Management described a possible U.S.-Iran breakthrough as “top of mind,” particularly regarding ship traffic through the Strait of Hormuz.
