NEW YORK: The S&P 500 and the Nasdaq touchedfresh peaks on Friday, boosted by gains in Nvidia and other technology stocks, while a stronger-than-expected jobs report allayed concerns over the state of the labor market.
Tech heavyweights Nvidia and Apple rose 2.3 percent and 1.8 percent, respectively, while the Philadelphia SE Semiconductor index recovered from Thursday’s losses to reach a new high on expectations of strong AI infrastructure demand.
Data showed US employment increased more than expected in April and the unemployment rate held steady at 4.3 percent - pointing to labor market resilience and reinforcing expectations that the Federal Reserve would leave interest rates unchanged for some time.
“It was encouraging that hiring broadened across sectors, a sign of improving labor market breadth,” said Angelo Kourkafas, senior strategist at Edward Jones.
“The Fed will remain firmly on hold as the focus now is going to be on the energy-driven inflation pressures in the months ahead.”
Traders continued to bet that the central bank will hold interest rates steady in the 3.50 percent to 3.75 percent range until the end of the year.
At 11:44 a.m. the Dow Jones Industrial Average rose 24.36 points, or 0.05 percent, to 49,621.33, the S&P 500 gained 53.99 points, or 0.74 percent, to 7,391.10, and the Nasdaq Composite was up 340.22 points, or 1.32 percent, to 26,144.57.
The S&P 500 and the Nasdaq were on track for a sixth straight week of gains, in what could be the longest such winning streak since October 2024. The Dow was set for a second consecutive week of advances.
The overall optimism helped investors look past fresh attacks between US and Iranian forces in the Gulf.
Brent crude rose above USD100 a barrel as hopes faded for a quick resolution to the Middle East conflict and the gradual reopening of the Strait of Hormuz, a key transit route for oil and liquefied natural gas.
The US said it expected a response from Tehran to its latest proposal later on Friday.
Despite concerns that oil prices were fueling inflation, the S&P 500 and the Nasdaq have hit record highs, helped by a strong earnings season, signs of a resilient economy and optimism around artificial intelligence. “There’s a huge secular movement at play within the tech sector, and specifically microchips,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.
“While there is some concentration, it’s reflective of what’s happening in the real economy with the AI buildout and the expansion.”
Of the 440 S&P 500 companies that have reported first-quarter results so far, 83 percent have topped analysts’ earnings estimates, according to data compiled by LSEG. That compares with a long-term average of about 67 percent.
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