S&P 500 and Nasdaq hit new record highs supported by technology stocks and strong US jobs data

The S&P 500 and Nasdaq indexes reached new record highs during Friday trading, supported by gains in Nvidia and Apple shares, alongside stronger-than-expected US jobs data that reinforced investor confidence in the strength of the American labor market.

Nvidia shares rose more than 2%, alongside Apple shares, while the semiconductor index (.SOX) recovered Thursday’s losses to reach a new record high amid expectations of continued strong demand for artificial intelligence-related infrastructure.

Data showed that the US economy added more jobs than expected during April, while the unemployment rate remained stable at 4.3%, signaling continued resilience in the labor market and strengthening investor bets that the Federal Reserve will keep interest rates unchanged for a longer period.

Sam Stovall, chief investment strategist at CFRA Research, said the data “confirms that the labor market remains strong, which gives consumers confidence to continue spending aggressively.”

Traders still expect the Federal Reserve to maintain interest rates within the 3.50% to 3.75% range through the end of the year.

By 09:41 a.m. Eastern Time, the Dow Jones Industrial Average (.DJI) rose by 106.64 points, or 0.22%, to 49,703.61 points, while the S&P 500 gained 33.47 points, or 0.46%, to 7,371.21 points, and the Nasdaq Composite jumped 195.50 points, or 0.76%, to 26,001.69 points.

Both the S&P 500 and Nasdaq are heading toward a sixth consecutive week of gains, marking the longest weekly winning streak since October 2024, while the Dow Jones is on track for a second consecutive weekly gain.

This positive atmosphere helped investors overlook the latest exchanges of attacks between US and Iranian forces in the Gulf region.

Oil prices had earlier touched the $100-per-barrel level before easing slightly as hopes for a quick resolution to the Middle East conflict and the reopening of the Strait of Hormuz faded. The strait remains a vital corridor for oil and liquefied natural gas shipments.

Iran’s semi-official Tasnim news agency quoted a Foreign Ministry spokesperson as saying Tehran is still reviewing its response to the US proposal.

Despite concerns that rising oil prices could fuel inflation, the S&P 500 and Nasdaq continued recording new record highs, supported by a strong earnings season, signs of resilience in the US economy, and optimism surrounding technology and artificial intelligence companies.

According to data compiled by LSEG, 83% of the 440 companies within the S&P 500 that have reported quarterly results so far exceeded earnings expectations, compared with a long-term historical average of around 67%.

However, some companies posted disappointing results. Cloudflare shares fell 18.6% after the cloud computing services company announced plans to reduce about 20% of its workforce and projected second-quarter revenue slightly below Wall Street estimates.

The Trade Desk shares also declined 5.3% after the advertising technology company forecast quarterly revenue below market expectations.

CoreWeave shares dropped 9% after the cloud infrastructure company raised the lower end of its annual capital expenditure guidance, citing rising component costs.

Expedia shares fell 8.7% after the online travel platform indicated that the Middle East conflict is negatively affecting demand.

In market breadth, advancing stocks outnumbered declining stocks by a ratio of 1.41 to 1 on the New York Stock Exchange and by 1.08 to 1 on Nasdaq.

The S&P 500 recorded 13 new 52-week highs against six new lows, while the Nasdaq Composite recorded 59 new highs and 43 new lows.