The release of the employment report provided significant initial support to the market. The US economy added 115,000 jobs in April, while the unemployment rate remained steady at 4.3%. This combination alleviates fears of an economic slowdown but also complicates the scenario for rapid monetary easing, as the Fed may see it as further justification to gradually withdraw its accommodative bias.

Against this slightly better macroeconomic backdrop, investors were better able to look past the tensions in the Middle East. US Central Command said that American forces had struck military targets in Iran after Tehran fired upon three destroyers in the Strait of Hormuz, while clarifying that they were not seeking escalation. Donald Trump subsequently stated that the vessels had left the strait undamaged, limiting the immediate impact of the episode on risk assets.

Beyond the support from employment data, the session was primarily dominated by semiconductors and AI-related stocks. Intel surged nearly 14% following reports from the Wall Street Journal regarding a preliminary agreement to produce chips for Apple, bolstering confidence in the turnaround of its foundry business. Micron gained nearly 15% after shipping new high-capacity SSDs optimized for artificial intelligence, while AMD jumped over 11%. The PHLX Semiconductor Index advanced more than 5%, bringing its weekly gain to nearly 11% and its monthly performance to almost 40%.

Except for tech giants, several corporate moves also animated the tape. Dell gained 13% following favorable comments from Donald Trump, who explicitly cited the group during a public address. Corpay rose 12% after posting better-than-expected results and a solid outlook. Rocket Lab also soared 34% following record quarterly revenue and the announcement of its largest launch contract to date.

Despite the strength of the rally in segments most exposed to artificial intelligence, certain disappointments limited the breadth of the advance across several sectors. Cloudflare plummeted approximately 24% despite better-than-expected results, weighed on by slowing growth, margin pressure, and concerns over its guidance. Motorola Solutions slid over 11%, despite beating expectations and raising its outlook. Expedia also traded lower amid a cautious environment for travel-related stocks.

After a week that was dominated by corporate earnings, employment, and geopolitics, next week attention is expected to shift towards US inflation data, with the release of consumer price figures followed by producer prices.