Fresh Highs for Nasdaq and S&P 500 on Bullish Tech Stocks
Quick overview
- U.S. stock indices are poised to finish the week at record highs, with the S&P 500 up 1.5% and the Nasdaq up 2.8%.
- A positive jobs report revealed 115,000 jobs added in April, with unemployment steady at 4.3%, boosting market confidence.
- Tech stocks, particularly in the AI sector, have performed strongly, with Qualcomm gaining 35% this week.
- Analysts predict continued upward momentum in the markets, contingent on potential peace talks between the U.S. and Iran.
U.S. stock indices are set to end the week high and both the Nasdaq and S&P 500 set new records on Thursday thanks to a positive jobs report and talks of peace for Iran.
The S&P 500 may end the week 1.5% higher while the Nasdaq could climb as much as 2.8% by the weekend. These indices reached fresh highs and then pulled back Friday morning in early trading. The Dow looks like it will finish off the week not quite as strong- around 0.2% higher.
The U.S. jobs report was better than Wall Street expected, with 115,000 jobs added in April. Unemployment remained steady- holding at 4.3%. President Donald Trump said that the report smashed expectations, and the economy seems less affected by Iran tensions and inflation than expected- at least as far as the employment sector is concerned.
Stocks Rising and Expected to Remain Bullish
The Dow added 0.15% on Friday morning, propped up by strong showings from Apple (AAPL), Cisco (CSCO), and Nvidia (NVDA). These stocks rose 2.08%, 3.49%, and 2.04% respectively on Friday.
The Nasdaq Composite climbed 1.21% on Friday, reversing course from its premarket trading dip. The S&P 500 added 0.74% to its total, once again setting a new high.
These bullish movements prompted analysts to predict that the upward momentum would continue through next week, especially if Iran and the United States can come to an agreement over the conflict in the region. Iran expects repayment from the U.S. over damage caused to its gas production facilities, ships, and oil fields, and the U.S. expects Iran to abide by certain restrictions in controlling the Strait of Hormuz. Both sides seem interested in peace but unwilling to make these specific concessions.
Tech stocks have done particularly well this week, rallying on positive quarterly reports and excellent market sentiment for the AI sector. Qualcomm (QCOM) stock managed to gain 35% over the last week thanks to a strong Q2 report and easing off from China-U.S tariffs.
Micron Technology (MU) shares rose 4% Friday and continued a bullish push for AI stocks that has helped indices set new records in May. Investors should expect semiconductor stocks and other AI-related stocks to continue to perform well through next week.
Timothy St. John
Financial Writer – European & US Desks
