Mixed Stock Markets as US Job Gains, Chipmaker Earnings and Oil Prices Influence Traders
Global equities posted mixed results on Friday. The S&P 500 added 0.8%, the Nasdaq Composite surged 1.5% to new record levels, while the Dow Jones Industrial Average was largely unchanged. European markets slipped, with the STOXX 600 down 0.77%, and Asian indices fell modestly from recent peaks.
Chipmakers led the rally in the US, as Qualcomm rose about 7.7% and Nvidia gained nearly 2%. Intel shares jumped roughly 14% after a Wall Street Journal report suggested a preliminary manufacturing deal with Apple for iPhone chips. Oil prices climbed again, with Brent crude up 1% to around $101 per barrel, driven by renewed fighting near the Strait of Hormuz that raised doubts about the US‑Iran ceasefire.
US employment data for April exceeded expectations, adding more jobs while the unemployment rate held at 4.3%, reinforcing views that the Federal Reserve will keep rates steady for now. Morgan Stanley's chief economic strategist noted that solid jobs numbers keep the Fed in a watchful stance, focusing on inflation, and that rate cuts remain distant. Meanwhile, consumer sentiment fell to a record low in early May as higher gasoline prices strained household budgets.
Tensions in the Middle East persisted, with the United States and Iran exchanging fire in the Gulf and the UAE facing renewed attacks, casting uncertainty over the ceasefire. Analysts warned that disruptions in the Strait of Hormuz are likely to continue.
The US dollar slipped slightly, heading for a second consecutive weekly decline, while the yen remained under pressure after Japanese authorities intervened earlier in May. The euro traded at $1.177, and the Chinese yuan hovered near 6.8 per dollar, its strongest level since 2023. British markets rose after Prime Minister Keir Starmer announced he would not resign despite Labour's losses in local elections.
A US trade court ruled that President Trump's recent 10% temporary global duties were unlawful under a 1970s trade law, but the administration appealed, with analysts expecting limited impact on overall tariffs. Treasury yields eased, with the 10-year benchmark at 4.364%, down three basis points. Bitcoin continued its rally, approaching a sixth consecutive weekly gain around $80,051.
