NEW YORK, May 8, 2026, 17:03 EDT
- Chip stocks ripped higher, pushing both the S&P 500 and Nasdaq to fresh record closes as U.S. hiring data came in stronger.
- Nonfarm payrolls climbed by 115,000 in April, topping expectations. Unemployment stayed put at 4.3%.
- Oil stuck with its war-risk premium tied to Iran, while headline indexes masked softer market breadth underneath.
Friday saw U.S. stocks notch fresh record highs, with Nvidia, Micron Technology, and Sandisk driving the S&P 500 and Nasdaq higher after a jobs report calmed fears about labor market weakness. The S&P 500 climbed 0.84% to close at 7,398.93, while the Nasdaq jumped 1.71% to 26,247.08. The Dow Jones Industrial Average inched up just 0.02% to 49,609.16.
Investors drove stocks up despite ongoing Iran war jitters rattling energy markets and the Federal Reserve holding off on rate cuts. Bloomberg noted the S&P 500 was on track for its sixth weekly gain, with artificial-intelligence stocks rebounding and hopes persisting that the U.S. economy can withstand the turmoil.
Nonfarm payrolls climbed by 115,000 in April, the Labor Department reported, with the unemployment rate holding steady at 4.3%. Jobs increased in health care, transportation and warehousing, and retail trade. Federal government payrolls continued their slide.
Nvidia picked up 1.8%. Shares of Micron and Sandisk surged over 15% apiece, powered by demand from the AI data center buildout that’s been fueling interest in memory and storage names. The Philadelphia Semiconductor Index climbed sharply, now up 55% for the second quarter.
“This is an economy that seems hard to wreck,” said Rob Williams, chief investment strategist at Sage Advisory Services, in a comment to Reuters. He flagged productivity, spending, consumer wealth, and earnings as bright spots. That idea pretty much set the tone Friday—not a surge, but just enough growth to sustain risk appetite. Investing.com Australia
Corporate profits pushed the rally forward. According to LSEG I/B/E/S, S&P 500 earnings for the first quarter are set to climb nearly 29% year-on-year, with most of that boost coming from AI-focused giants. Of the 440 S&P 500 firms that have reported so far, 83% managed to top analysts’ expectations—that’s well above the historical average of roughly 67%.
Analysts stopped short of labeling the jobs report as hot. Robert Pavlik, senior portfolio manager at Dakota Wealth, described the 115,000 increase as “not a tremendous amount,” though he noted it was sufficient to ease investor worries about a potential economic collapse. Peter Cardillo, chief market economist at Spartan Capital Securities, called it “a solid labor report,” adding that the Fed’s attention remains on inflation, not the labor market. Reuters
Beneath those index highs, the weak links stood out. Within the S&P 500, losers topped gainers by about 1.4 to 1. Cloudflare dropped after announcing plans to cut roughly 20% of its staff. Expedia shares also lost ground, with the company citing the Middle East conflict’s drag on demand.
Oil’s not letting up—Brent finished at $101.29 a barrel after new fighting erupted near the Strait of Hormuz, keeping prices far above pre-war marks. The 10-year Treasury yield slipped to 4.36%, with investors also digesting weaker consumer sentiment.
Chris Zaccarelli of Northlight Asset Management told Bloomberg the economy’s turning out sturdier than what the “doom crew” had insisted. Mark Hackett at Nationwide sees bearish voices still leaning on the argument that market gains are concentrated—think semiconductors. But so far, Hackett said, it’s earnings revisions and price momentum that keep pushing markets upward. SWI swissinfo.ch
The S&P 500 wrapped up the week with a 2.3% gain, while the Nasdaq surged 4.5%, AP reports. Wall Street’s momentum still draws from the usual trio: AI-driven spending, solid earnings surprises, and a job market that’s easing off but hasn’t buckled yet.
