NEW YORK, May 8, 2026, 12:09 EDT
Stocks pushed higher Friday, sending both the S&P 500 and Nasdaq to new all-time highs after a jobs report beat forecasts and tech leaders like Nvidia and Apple each advanced over 2%. The chip sector kept up its momentum as well, with a key semiconductor index reaching a record on persistent demand for AI-related hardware.
Approaching midday in New York, the S&P 500 rose 0.79% to 7,395.24, according to LSEG data via Reuters. The Nasdaq Composite advanced 1.39% to 26,165.36. The Dow Jones Industrial Average inched up 0.05%, landing at 49,624.16. Brent crude climbed 1.59% to $101.65, while the 10-year Treasury yield held steady at 4.346%.
Investors latched onto the jobs numbers, using them as justification to stick with riskier assets after the recent surge in stocks. April’s nonfarm payrolls climbed by 115,000, and the unemployment rate stayed put at 4.3%, according to the Labor Department’s Bureau of Labor Statistics. Health care, transportation and warehousing, and retail trade all posted gains, while federal government payrolls kept shrinking.
Robert Pavlik, senior portfolio manager at Dakota Wealth, called the 115,000 gain “not gangbusters,” but said it signals the economy isn’t “collapsing.” Tim Holland, chief investment officer at Orion Advisor Solutions, pointed to the consecutive gains in March and April as evidence of U.S. economic resilience. Still, he noted the numbers don’t provide much ammunition for Fed rate cuts. Reuters
Earnings and AI added fuel to the rally. RBC Capital Markets bumped its S&P 500 year-end target up to 7,900 from 7,750, citing steady earnings growth and strength in AI-related sectors as tailwinds for stocks; according to the firm, that new target suggests a 7.7% gain from Thursday’s close.
Moves in individual names cut both ways. Akamai Technologies surged on news of a $1.8 billion cloud infrastructure agreement. CoreWeave, on the other hand, slid despite more than doubling revenue—losses and a weaker forecast for the current quarter weighed. Monster Beverage shares rallied hard after the company surpassed both profit and revenue forecasts.
Still, there’s a hitch in the rally. U.S. consumer sentiment dropped to a record low—48.2 in early May, down from 49.8 in April. Joanne Hsu, who directs the University of Michigan Surveys of Consumers, pointed to households “buffeted by cost pressures” as gasoline prices continue to bite into budgets and erode purchasing power. Investing.com
The coming week could show whether this rally still has legs. On deck: consumer price index data, plus producer prices and retail sales. Investors are also tracking the Iran war’s next moves and the expected Trump-Xi meeting. Michael Arone at State Street Investment Management calls a possible U.S.-Iran breakthrough “top of mind” right now. He’s watching for updates on ship traffic through the Strait of Hormuz. Reuters
