United States benchmark averages closed higher on Friday (Saturday AEST) after stronger-than-expected April employment data reinforced confidence in the U.S. economy, while investors also monitored persistent tensions between the United States and Iran in the Strait of Hormuz.
The Dow Jones Industrial Average rose 12.2 points, or 0.02%, to 49,609.2. The S&P 500 advanced 61.8 points, or 0.8%, to finish at a fresh record high of 7,398.9, while the Nasdaq Composite also closed at record highs, climbing 440.9 points, or 1.7%, to 26,247.1.
All three major indexes recorded weekly gains, supported by robust corporate earnings results, particularly within the technology sector.
The Nasdaq surged 4.5% for the week, while the S&P 500 added 2.3%, with both benchmarks posting their sixth consecutive weekly advance, marking their longest winning streak since 2024.
The Dow lagged behind its peers with a weekly gain of 0.2%.
Technology stocks remained a key driver of market performance, although some high-profile names came under pressure following disappointing guidance and restructuring announcements.
Cloudflare plunged 24% after the cloud services provider announced plans to reduce its workforce by about 20% and projected second-quarter revenue slightly below market expectations.
CoreWeave declined 11.4% after the cloud infrastructure company lifted the lower end of its annual capital expenditure guidance, citing higher component costs.
Online travel company Expedia fell 9% after warning that the ongoing conflict in the Middle East was weighing on travel demand.
According to FactSet Earnings Insight, as of 8 May, with 89% of S&P 500 companies reporting actual results, 84% have reported a positive EPS surprise, and 80% have reported a positive revenue surprise.
Meanwhile, geopolitical tensions continued to influence investor sentiment and energy markets. West Texas Intermediate crude futures rose 0.64% to US$95.42 a barrel after U.S. and Iranian forces exchanged fire in the Strait of Hormuz.
Both sides accused the other of initiating the confrontation. U.S. Central Command stated that American military forces had “intercepted unprovoked Iranian attacks and responded with self-defense strikes” while three U.S. Navy destroyers were transiting the strategic waterway.
In a Truth Social post, President Donald Trump said there was “no damage done to the three Destroyers, but great damage done to the Iranian attackers”.
Among economic data releases, U.S. employment increased more than expected in April, while the unemployment rate remained steady at 4.3%.
The figures reinforced market expectations that the Federal Reserve would likely keep interest rates unchanged for an extended period.
Traders are currently pricing in the likelihood that the central bank will maintain its benchmark interest rate within the 3.50% to 3.75% range through the remainder of the year, according to the CME Group FedWatch Tool.
On the bond markets, the yield on the benchmark 10-year Treasury note fell 0.6% to 4.36%, while the two-year Treasury yield also declined 0.6% to 3.889%.
