The US stock market rose on Friday as a strong April jobs report and progress on the US-Iran peace memo lifted risk appetite. The S&P 500 climbed 0.78% toward record territory, led by a sharp rally in semiconductors and AI infrastructure plays.
Tech outperformed broadly while Healthcare lagged on rotation out of defensives.
1. The April Jobs Report Reinforced the Soft Landing Narrative
April nonfarm payrolls rose by 115,000, well above the 55,000 to 65,000 economists expected. Unemployment held steady at 4.3%, and average hourly earnings rose just 0.2% month-over-month.
The data reinforced the soft-landing thesis, in which the economy slows enough to ease inflation without slipping into a recession. That eases pressure on the Federal Reserve to cut or hike.
2. Iran Peace Memo Progress Lifted Risk Appetite
US and Iranian negotiators are closing in on a one-page memo to end the war. The 14-point framework would start a 30-day window for a detailed deal.
The MOU would gradually reopen the Strait of Hormuz and lift sanctions in stages. Risk assets caught a bid as a path to de-escalation reduced the geopolitical premium pricing into equities.
3. AI Capex Drove a Semiconductor Surge
Semiconductors surged on signals that AI infrastructure spending will continue. Micron (MU) jumped 10.47%, AMD added 7.25%, and Intel (INTC) rose 7.50%. AMAT and KLAC each gained more than 4.9%.
AI software names rallied alongside. Datadog (DDOG) extended gains on a 32% revenue beat. Akamai (AKAM) jumped on a $1.8 billion AI cloud deal. Together, the Q1 prints reinforced AI as the dominant tech spending theme.
What Happened to Major US Indexes?
- S&P 500: +0.76% to 7,393.03
- Nasdaq Composite: +1.34% to 26,152.9, with tech leading
- Dow Jones Industrial Average: +0.08% to 49,634.4, lagging on weakness in JPMorgan and Wells Fargo
Market breadth was constructive, with 49.2% of stocks advancing against 46.1% declining and 58.7% of issues hitting new highs. Volume stayed firm, suggesting institutional participation behind the move.
On the chart, the S&P 500 broke above a bull flag pattern with a 15% breakout potential.
The measured move target sits near 8,326 if the breakout holds. Immediate resistance sits at 7,536, with downside support at 7,170.
Which Sectors Are Holding Up?
Technology rose 1.57%, the day’s biggest gainer. Strong jobs data support continued AI infrastructure spending. Easing wage pressures keep input costs in check for chipmakers and software providers.
Basic Materials added 1.10% as a softer dollar made commodities more attractive to global buyers. Gold miners benefited as uncertainty around Iran kept safe-haven demand alive even on a risk-on day.
Consumer Cyclical rose 0.75%, with Tesla (TSLA) up 4.03% and Amazon (AMZN) adding 0.59%. Stronger employment data support household spending power, lifting retailers and auto names.
Which Sectors Are Falling?
Healthcare led the decline, down 0.83%. Eli Lilly (LLY) fell 2.41%, Pfizer (PFE) dropped 2.55%, and AbbVie (ABBV) declined 0.83%. Defensive names typically underperform on risk-on days as capital rotates into growth and cyclicals.
Communication Services fell 0.35% as Meta (META) dropped 1.44% on profit-taking after recent gains. Financials slipped 0.11%, weighed down by Wells Fargo (WFC) at -3.04% and Bank of America (BAC) at -2.08%. Easing wage pressure dampened expectations for net interest margins.
Major Stock News Investors Are Watching
CoreWeave (CRWV) shares fell 13.16% after Q1 revenue of $2.08 billion beat estimates. Q2 revenue guidance of $2.45 billion to $2.6 billion fell short of the $2.69 billion consensus. The company also raised its 2026 capex floor to $31 billion on rising component costs.
Cloudflare (NET) shares plunged 24.40% after Q1 results showed slowing growth and margin pressure. Soft Q2 guidance and plans to cut about 20% of its workforce in an AI-focused restructuring spooked investors.
The two prints highlight a bifurcation in the cloud. AI infrastructure providers face execution costs while traditional players hit growth ceilings.
What Are Investors Watching Next?
Markets now wait for Iran’s response to the US peace memo, expected this weekend. Next week’s April CPI release will test whether wage easing translates into broader disinflation.
Tariff developments and the Fed’s June meeting also remain on the radar. The bull flag breakout points higher, but only if the labor market stays this side of the soft landing line.
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