Traders work on the floor of the New York Stock Exchange (NYSE) on Wednesday, May 6, 2026, in New York, USA.
Michael Nagle | Bloomberg | Getty Images
U.S. stocks rose on Friday after a better-than-expected April jobs report and traders focused on developments between the U.S. and Iran.
of S&P500 It rose 0.84% to end at 7,398.93. Nasdaq Composite It rose 1.71% to 26,247.08. Both indexes hit new intraday highs during trading and closed at their highest levels. of Dow Jones Industrial Average It rose by 12.19 points (0.02%) and settled at 49,609.16.
All three major stocks averaged weekly gains, driven by strong earnings. The Nasdaq index rose 4.5% and the S&P 500 index rose 2.3% on strong tech company earnings. Both recorded six-week winning streaks, marking the longest winning streak for a market-wide benchmark and tech-heavy index since 2024. The Dow Jones Industrial Average lagged, rising 0.2% from the start of the week.
Sentiment strengthened after the Bureau of Labor Statistics reported that nonfarm payrolls rose by 115,000 jobs last month, higher than the 55,000 expected by economists compiled by Dow Jones. The U.S. unemployment rate was also in line with expectations, holding steady at 4.3%.
However, crude oil prices rose slightly, West Texas Intermediate Crude Oil Futures Oil prices rose 0.64% to $95.42 per barrel after the US and Iran engaged in a gunfight in the Strait of Hormuz. Both sides claimed the other attacked first. U.S. Central Command said its military “intercepted an unprovoked Iranian attack and responded with a self-defense attack” as three U.S. Navy destroyers passed through the waterway.
In a post on Truth Social Thursday night, President Donald Trump said, “There was no damage to the three destroyers, but there was significant damage to the Iranian attackers.” He also reportedly said that the ceasefire was still in effect and that attacks on Iranian targets were “just a love tap.”
Investors are waiting for a response from Iran on its proposal to end the Middle East conflict after Iranian state media reported on Thursday that Tehran is considering a message from the United States received through a Pakistani intermediary but has not yet reached a conclusion. Secretary of State Marco Rubio told reporters Friday that the United States “needs to know something today.”
of S&P500 and Nasdaq Composite Iran hit a record high in the previous session, but retreated after a senior Iranian official said the country would not allow the US to reopen the Strait of Hormuz due to its “unrealistic plans”, state-run Press Television reported. The official added that the United States will not allow Iran to leave the conflict without paying reparations for the damage it has caused.
But Keith Buchanan, senior portfolio manager at Globalt Investments, is skeptical that the market’s recent rally will continue, especially given that the market is largely supported by optimism around capital spending in artificial intelligence. This spurred a rise in memory stocks. micron technology and sandiskfor example, soared 15% and 16% on Friday alone. Micron is up about 38% for the week, while SanDisk is up more than 31%.
“The market is trading at a valuation that doesn’t give us an indication of the risks that are out there,” Buchanan said, noting that there is an increasing likelihood that the Middle East conflict will last longer than expected and its negative impact on consumers.
“This is a story about AI spending and its ripple effects and revenue, which is definitely driving the economy, but without that spending and optimism it would probably be pretty lackluster,” he continued.
—CNBC’s Kevin Breuninger and Elsa Ohlen contributed reporting.
