The S&P 500 and Nasdaq have reached fresh record highs on Friday as technology shares advanced and a stronger-than-expected U.S. jobs report eased concerns about labour market weakness. The S&P 500 rose above 7,400 for the first time in history during the session, extending a rally that has added about $10 trillion in market value since March 30. The Nasdaq also moved higher, supported by gains in semiconductor and artificial intelligence-linked stocks. At late morning trading, the Dow Jones Industrial Average was up 0.05% at 49,621.33, the S&P 500 gained 0.74% to 7,391.10, and the Nasdaq Composite climbed 1.32% to 26,144.57. The S&P 500 and Nasdaq were on track for a sixth straight weekly gain, which would be their longest winning run since October 2024. Technology stocks led the advance. NVIDIA rose 2.3% , while Apple gained 1.8% . The Philadelphia Semiconductor Index recovered from Thursday’s decline and moved to a new high as investors continued to price in demand for AI infrastructure. Jobs Data Supports Market Sentiment The April employment report showed U.S. job growth exceeded expectations, while the unemployment rate held at 4.3%. Nonfarm payrolls reportedly rose by 115,000, above economist estimates of 55,000. The data suggested that the labor market remains resilient despite tighter financial conditions and higher energy prices. Market participants said broader hiring across sectors helped support confidence in the economic outlook. The report also reinforced expectations that the Federal Reserve will keep interest rates unchanged for an extended period. Traders continued to expect the central bank to hold rates in the 3.50% to 3.75% range through the end of the year. Investors are now watching inflation risks tied to oil prices. Brent crude traded above $100 a barrel as hopes faded for a quick resolution to the Middle East conflict and the reopening of the Strait of Hormuz. AI Stocks Lead Wall Street Rally The stock market advance has been supported by a strong earnings season and investor demand for companies tied to artificial intelligence. Nvidia and other chipmakers have remained central to the rally as cloud computing firms, software companies and data center operators increase spending on AI systems. Of the 440 S&P 500 companies that have reported first-quarter results so far, 83% have beaten analysts’ earnings estimates, according to LSEG data cited in reports. That is above the long-term average of about 67%. Market analysts said the rally reflects earnings strength, liquidity and demand for AI-related exposure. Call option activity also showed rising risk appetite. According to reports, the S&P 500 call option volume reached a record $2.6 trillion in notional value on Wednesday, with calls accounting for about 58% of all S&P 500 options traded. Source: X Akamai Technologies rose more than 20% after its earnings report, adding to gains among selected technology names. Semiconductor shares also drew buying interest as investors continued to view AI infrastructure as a major growth area. Middle East Risks Remain in Focus Despite the rally, geopolitical risk remained a key concern. Fresh exchanges between U.S. and Iranian forces in the Gulf kept energy markets volatile, while investors waited for Tehran’s response to a U.S. peace proposal. Barclays reportedly warned that further S&P 500 gains may be limited without progress on reopening the Strait of Hormuz. The bank said global equities were benefiting from hopes of a US-Iran agreement but noted that the rally still depends on major risks easing. The Strait of Hormuz remains a key route for oil and liquefied natural gas shipments. Prolonged disruption could keep energy prices elevated and create renewed inflation pressure. Some companies also faced pressure from weaker outlooks. Cloudflare dropped about 24% after announcing plans to cut about 20% of its workforce and issuing second-quarter revenue guidance slightly below Wall Street expectations. The Trade Desk fell 6.2% after forecasting second-quarter revenue below estimates. CoreWeave dropped 13% after raising the lower end of its annual capital expenditure forecast due to higher component costs. Despite the decline, this entire rally may be a boost for the crypto market. Moreover, as we reported, according to Binance founder Changpeng Zhao, 'CZ', stronger equity markets boost digital asset sentiment. He said stronger stock market performance could be “very positive” for Bitcoin and the wider crypto market, as witnessed by Bitcoin price recovery above $80,000.