S&P 500, Nasdaq Close at Fresh Records as Jobs Data, Chip Rally Lift Stocks

U.S. stocks climbed to fresh records again on May 8 as stronger-than-expected hiring data and a rally in semiconductor shares outweighed concerns over Middle East-driven oil volatility and weakening consumer sentiment. Investors instead focused on signs of resilience in the U.S. economy.

The S&P 500 rose 61.82 points, or 0.84%, to 7,398.93 at the close in New York. The tech-heavy Nasdaq Composite jumped 440.88 points, or 1.71%, to 26,247.08. Both indexes ended at all-time highs and posted a sixth straight weekly gain based on Friday closes. The Dow Jones Industrial Average added 12.19 points, or 0.02%, to 49,609.16, lagging the broader market.

The advance was driven in part by a stronger-than-expected labor report. U.S. nonfarm payrolls increased by 115,000 in April from the previous month, Labor Department data showed. That was more than double the market forecast of 55,000. The figures boosted hopes for a soft landing despite the burden of high oil prices and the U.S.-Iran war.

Semiconductor stocks also led the market higher. Intel surged nearly 14% after The Wall Street Journal reported that the company had secured a contract to manufacture chips for Apple's next-generation devices. Intel's market capitalization topped $540 billion, and the stock is up about 250% this year. Optimism over Intel's foundry business spread to other chipmakers, lifting Nvidia and AMD as well.

Consumer sentiment, by contrast, deteriorated sharply. The University of Michigan's preliminary consumer sentiment index for May fell to 48.2, the lowest since the survey began in 1952. The reading appeared to reflect worries over tariffs and rising oil prices.

Tensions in the Middle East remained high. The U.S. military said it had disabled two Iranian tankers trying to break a naval blockade and enter an Iranian port in the Gulf of Oman. A day earlier, U.S. and Iranian forces exchanged fire near the Strait of Hormuz. Uncertainty continued to build even with an official ceasefire still in place.

Oil prices rebounded. Brent crude for July delivery rose 1.23% to settle at $101.29 a barrel, while West Texas Intermediate for June delivery gained 0.64% to $95.42. Both benchmarks still fell more than 6% for the week.

Markets placed greater weight on easing recession concerns than on the risk that strong employment could delay interest-rate cuts. Treasury yields were little changed. The 10-year yield slipped 0.02 percentage point to 4.36%, while the two-year yield was nearly unchanged at 3.89%. The Bloomberg Dollar Spot Index fell 0.2%, and spot gold rose 0.8% to $4,772.81 an ounce.

Lee Song-ryeol, Hankyung.com reporter yisr0203@hankyung.com