By Elsie Kamsiyochi
U.S. stock markets climbed to fresh record highs on Friday, with the S&P 500 and Nasdaq extending their powerful rally as investors reacted positively to stronger-than-expected employment data and renewed momentum in technology shares.
The gains reflected growing confidence that the American economy remains resilient despite ongoing geopolitical tensions and concerns about inflation.
Technology giants led the advance, pushing the Nasdaq above the 26,000 mark for the first time. Nvidia and Apple both surged more than 2%, helping fuel a rebound across the semiconductor sector after a brief pullback earlier in the week. Investors continued pouring into chipmakers amid expectations that demand tied to artificial intelligence infrastructure will remain strong throughout the year. The broader semiconductor index also touched a new all-time high, highlighting Wall Street’s continued enthusiasm for AI-related investments.
The latest U.S. labor market data added to the optimism. Government figures showed that job growth in April exceeded economists’ forecasts, while the unemployment rate held steady at 4.3%. The report eased fears that the economy might be slowing sharply and reinforced the belief that consumers still have the financial strength to maintain spending.
Market analysts said the employment figures support the idea that the Federal Reserve can afford to keep interest rates unchanged for longer without immediately worrying about economic weakness. Traders now largely expect the central bank to leave rates in the 3.50% to 3.75% range through the rest of the year.
By mid-morning trading, the Dow Jones Industrial Average was up more than 100 points, while the S&P 500 gained nearly half a percent and the Nasdaq rose close to 1%. The rally also placed the S&P 500 and Nasdaq on course for a sixth consecutive week of gains, their longest winning streak since late 2024. The Dow was also headed for a second straight weekly advance.
Investor optimism remained surprisingly strong even as tensions in the Middle East continued to escalate. Fresh clashes involving U.S. and Iranian forces in the Gulf briefly pushed oil prices near the $100-per-barrel level before prices eased slightly later in the session. Markets have been closely monitoring developments surrounding the Strait of Hormuz, a critical route for global oil and liquefied natural gas shipments.
Despite the geopolitical uncertainty and rising energy prices, strong corporate earnings have continued to support equities. According to LSEG data, roughly 83% of S&P 500 companies that have reported first-quarter results so far have exceeded analysts’ expectations — significantly above the long-term average of 67%.
Several companies, however, faced steep losses after disappointing forecasts or weaker outlooks.
Cloudflare shares plunged nearly 19% after the cybersecurity and cloud-services firm announced plans to cut about one-fifth of its workforce and projected second-quarter revenue below Wall Street estimates. Advertising technology company Trade Desk also fell after issuing weaker-than-expected revenue guidance.
CoreWeave, a major cloud infrastructure provider tied to AI demand, dropped after increasing the lower end of its annual capital expenditure forecast due to rising component costs. Meanwhile, online travel platform Expedia slid sharply after warning that conflict in the Middle East was beginning to hurt travel demand.
Even with those setbacks, advancing stocks outpaced decliners on both the New York Stock Exchange and the Nasdaq, reflecting broad market strength. The S&P 500 recorded multiple new 52-week highs, while dozens of Nasdaq-listed companies also reached fresh peaks.
The combination of resilient economic data, strong earnings, and relentless enthusiasm surrounding artificial intelligence continues to drive Wall Street higher, even as investors remain alert to geopolitical risks and inflation pressures that could challenge the rally later in the year.
Source Reuters
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