The S&P 500 briefly topped 7,400 for the first time on Friday, closing at 7,393.03 after a 0.76% gain. The move came as April nonfarm payrolls added 115,000 jobs, nearly double the consensus estimate of 55,000 to 65,000. The unemployment rate held steady at 4.3%, in line with forecasts.
Jobs data fuels broad market gains
The Labor Department’s report showed average hourly earnings rose just 0.2% month over month, keeping inflation worries at bay. The Dow Jones Industrial Average eked out a 0.08% gain to 49,634.4, while the Nasdaq Composite surged 1.34% to 26,152.9, powered by technology stocks.
Technology was the best-performing sector, up 1.57%. Basic Materials rose 1.10% and Consumer Cyclical added 0.75%. Healthcare led the declines, dropping 0.83%, followed by Communication Services at minus 0.35% and Financials down 0.11%.
Semiconductor stocks surge
Chipmakers led the charge. Micron jumped 10.47%, AMD added 7.25%, and Intel rose 7.50%. Applied Materials and KLA Corp each gained more than 4.9%. The strength in semiconductors helped the S&P 500 break above a bull flag pattern with a measured move target near 8,326, according to technical analysts. Resistance now sits at 7,536, with support at 7,170.
AI software names rally, but Cloudflare and CoreWeave stumble
Datadog extended its recent gains after reporting a 32% revenue beat. Akamai jumped on a $1.8 billion AI cloud deal. But not all tech stocks enjoyed the rally. Cloudflare shares plunged 24.40% after its Q1 results showed slowing growth and margin pressure. The company issued soft Q2 guidance and plans to cut about 20% of its workforce. CoreWeave fell 13.16% despite Q1 revenue of $2.08 billion beating estimates. Its Q2 guidance of $2.45 billion to $2.6 billion missed the $2.69 billion consensus, and the company raised its 2026 capex floor to $31 billion.
Geopolitical backdrop: US and Iran near 14-point MOU
Separately, the US and Iran are nearing a 14-point memorandum of understanding to halt fighting and start nuclear talks, according to reports. The MOU would include a 30-day window for negotiators to work out a detailed deal. The development adds a geopolitical layer to the market’s otherwise upbeat tone, though it’s unclear how it might affect oil prices or broader risk appetite.
Market breadth on Friday showed 49.2% of stocks advancing and 46.1% declining, with 58.7% hitting new highs. The mixed breadth suggests the rally was concentrated in a few names rather than broad-based.
The question now is whether the S&P can hold above the 7,400 level and challenge the next resistance at 7,536, especially as earnings season winds down and the Federal Reserve’s next moves remain uncertain.
