By Anietie anii-bassey
U.S. stocks surged Friday, pushing major indexes closer to record highs after stronger-than-expected jobs data reinforced confidence in the resilience of the American economy even as escalating tensions in the Middle East continued to rattle global energy markets.
The benchmark S&P 500 climbed 0.9% in afternoon trading and moved within reach of a fresh all-time high, extending a powerful rally that has carried Wall Street sharply higher over recent weeks. The Nasdaq Composite jumped 1.6% and was also on pace to close at a record level, fueled by gains in technology and artificial intelligence-related companies.
The Dow Jones Industrial Average added a more modest 45 points, or 0.1%, as investors balanced optimism about economic growth against renewed geopolitical uncertainty.
The rally was largely driven by a surprisingly strong U.S. labor market report that showed employers added significantly more jobs than economists had forecast. According to the latest figures, U.S. companies added 115,000 more jobs than they eliminated last month, nearly double analyst expectations despite rising fuel costs and uncertainty linked to the ongoing conflict involving Iran and military activity around the Strait of Hormuz.
Although hiring slowed compared with March, the data suggested the economy remains more resilient than many investors had feared earlier this year. The stronger employment picture helped reinforce expectations that consumer spending and corporate earnings could continue holding up even as geopolitical risks intensify.
The gains also kept the S&P 500 on track for a sixth consecutive weekly advance, which would mark its longest winning streak since 2024. Since late March, the market has rebounded sharply as investors increasingly bet that the conflict in the Middle East would avoid spiraling into a broader economic catastrophe.
Much of Wall Street’s recent optimism has centered on hopes that disruptions to oil shipments through the Strait of Hormuz — one of the world’s most critical energy corridors — would eventually ease. Investors have been closely watching signs of diplomatic progress after weeks of military exchanges involving Iranian and U.S. forces in the region.
Those hopes, however, remained fragile Friday after U.S. forces reportedly fired on and disabled two Iranian oil tankers following overnight exchanges of fire in the Strait of Hormuz. The latest confrontation highlighted the continued volatility surrounding the conflict and the possibility of further disruptions to global oil supplies.
U.S. Secretary of State Marco Rubio said Washington was waiting for what he described as “a serious offer” from Iran after the United States submitted a new proposal aimed at ending hostilities and restoring safe passage through the strategic waterway.
Energy markets reacted cautiously to the developments. Brent crude oil, the international benchmark, rose 0.9% to $100.99 per barrel. Oil prices remain significantly elevated compared with levels before the conflict began, when crude traded near $70 a barrel, though prices have retreated from wartime peaks above $119.
Despite the geopolitical turmoil, investors have continued pouring money into stocks, supported by robust corporate earnings and enthusiasm surrounding artificial intelligence and cloud computing technologies.
Monster Beverage emerged as one of Friday’s biggest winners, soaring 16.7% after the energy drink maker reported quarterly profit and revenue that exceeded Wall Street expectations. The company benefited heavily from strong international demand, with overseas sales accounting for roughly 45% of total revenue — the highest share in its history.
Akamai Technologies posted even stronger gains, surging 26.5% after narrowly beating analyst estimates and announcing a major $1.8 billion agreement to provide cloud infrastructure services to an unnamed customer over a seven-year period. The cybersecurity and cloud services company has been riding a broader wave of investment tied to artificial intelligence infrastructure and data demand.
Artificial intelligence remained one of the dominant themes on Wall Street, though not every company tied to the sector shared in the rally.
Shares of CoreWeave, a cloud computing provider specializing in AI processing power, fell 11.9% after the company reported a wider-than-expected quarterly loss. Although revenue more than doubled compared with a year earlier, investors were disappointed by the company’s earnings outlook and a current-quarter revenue forecast that fell short of analyst projections.
The mixed reaction underscored how investor expectations for AI-related companies have become increasingly demanding after months of explosive growth in the sector.
Overseas markets were less optimistic, with many European and Asian indexes finishing lower as traders weighed rising geopolitical tensions alongside concerns about energy prices and global economic growth.
Germany’s DAX index fell 1.3%, while Hong Kong’s Hang Seng Index lost 0.9%. South Korea’s Kospi index bucked the trend, edging up 0.1% to another record high amid continued strength in technology and semiconductor shares.
In the U.S. bond market, Treasury yields moved lower after another report suggested American consumers remain uneasy about inflation and economic conditions.
A survey released by the University of Michigan showed consumer sentiment hovering near its weakest level since 2022 as households continued expressing concern about high gasoline prices, tariffs and broader economic uncertainty.
However, the survey also indicated that inflation expectations for the coming year eased slightly, offering some reassurance to investors worried about persistent price pressures.
The yield on the benchmark 10-year U.S. Treasury note fell to 4.36% from 4.41% late Thursday. Earlier this week, the yield had climbed as high as 4.45% amid concerns that rising oil prices could reignite inflation.
Lower Treasury yields can help support economic activity by reducing borrowing costs for consumers and businesses. Falling yields often lead to lower mortgage rates and cheaper financing, which can stimulate spending and investment across the economy. Lower bond yields also tend to make stocks more attractive relative to fixed-income investments.
Even with Friday’s decline, however, the 10-year Treasury yield remained notably above the 3.97% level seen before the conflict in the Middle East intensified, reflecting lingering investor caution about inflation and geopolitical instability.
For now, Wall Street appears focused on the economy’s continued resilience and the strength of corporate profits, even as the conflict in the Persian Gulf threatens to inject fresh uncertainty into global markets. Investors remain hopeful that diplomacy could eventually ease tensions, reopen critical oil shipping routes and prevent the war from spilling into a broader economic crisis.
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