Stocks Rise on Strong Jobs, Iran Memo Progress and AI Capex
S&P 500 rose 0.78% after stronger-than-expected April payrolls, progress on a U.S.-Iran memorandum and rallies in semiconductor and AI infrastructure names.
U.S. stocks advanced Friday, with the S&P 500 up 0.78%, the Nasdaq Composite rising 1.34% to about 26,153 and the Dow Jones Industrial Average edging 0.08% to roughly 49,634. Technology and semiconductor names led gains while some defensive sectors lagged.
The April jobs report showed nonfarm payrolls increased by 115,000, above consensus estimates of roughly 55,000 to 65,000. The unemployment rate held at 4.3% and average hourly earnings rose 0.2% month over month. The data was released Friday alongside other monthly labor-market measures.
U.S. and Iranian negotiators were reported to be close to a one-page memorandum of understanding that would outline a 14-point framework and open a 30-day window for a comprehensive agreement. Core terms under discussion included a temporary pause in enrichment, stepped sanctions relief and expanded U.N. inspections, with Iran expected to respond within days. Reports of progress coincided with strength in risk-sensitive assets and commodity-linked sectors.
Semiconductor and AI infrastructure stocks were among the top performers. Micron gained about 10.5%, AMD rose roughly 7.3% and Intel advanced about 7.5%. Equipment suppliers Applied Materials and KLA each climbed more than 4.9%. AI software and cloud-related names also moved higher, with Datadog extending gains after reporting revenue above expectations and Akamai rising after a reported $1.8 billion AI cloud contract.
Not all technology companies posted positive reactions. CoreWeave shares fell after reporting Q1 revenue above estimates but issuing softer Q2 guidance and raising its 2026 capital-expenditure floor to $31 billion. Cloudflare shares dropped after slower growth, weaker guidance and a planned workforce reduction near 20% tied to an AI-related restructuring. The results highlighted divergent earnings trajectories and cost pressures across cloud and AI infrastructure providers.
Market breadth showed more advancing issues than decliners, with roughly 49% of stocks rising and 46% falling. About 59% of issues reached new 52-week highs. Sector moves included a roughly 1.6% gain in technology, a 1.1% rise in basic materials and a 0.8% decline in healthcare; communication services and financials lagged modestly.
On price charts, traders identified a breakout from a consolidation pattern in the S&P 500. Immediate resistance was cited near 7,536 and support near 7,170, with a measured move target around 8,326 if the breakout holds.
Investors are watching for Iran’s formal response to the memorandum, next week’s April consumer price index report for further inflation data, developments on tariffs and the Federal Reserve’s policy meeting in June.
