U.S. stocks rose on Friday as investors welcomed a stronger-than-expected April jobs report and another wave of AI-fueled tech momentum, even as renewed clashes between the U.S. and Iran kept geopolitical risks elevated. The Nasdaq Composite led the rally with a 1.4% gain, while the S&P 500 rose 0.8% and the Dow Jones Industrial Average edged up 0.1% after Thursday’s pullback.
Markets got an early boost after the U.S. economy added 115,000 jobs in April, sharply above expectations for roughly 65,000 new positions, while unemployment held steady at 4.3%. Investors largely looked past fresh tensions near the Strait of Hormuz, where military exchanges briefly pushed oil prices higher overnight, instead focusing on resilient economic data, cooling fears of a major slowdown, and continued strength across AI-linked technology stocks.
Market Movers:
- Intel (INTC) +14%: Intel surged after reports that Apple reached a preliminary agreement to use Intel’s manufacturing services for select chips. The news reignited optimism around Intel’s foundry turnaround and added fuel to the broader semiconductor rally.
- Micron (MU) +13%: Micron extended its massive AI-driven run as investors continued piling into memory-chip stocks tied to booming data center demand. The company has now become one of the market’s biggest semiconductor winners of 2026.
- Rocket Lab (RKLB) +26%: Rocket Lab soared after posting stronger-than-expected quarterly revenue and announcing a multiyear launch agreement alongside a new defense-related contract. Investors also cheered progress on the company’s Neutron rocket ahead of its planned debut launch later this year.
- Innodata (INOD) +88%: Innodata skyrocketed after delivering record quarterly results and raising its growth outlook. The AI data engineering company cited expanding partnerships with major hyperscaler customers and accelerating demand for AI training services.
- Akamai Technologies (AKAM) +20%: Akamai jumped after unveiling a major AI infrastructure agreement worth roughly $1.8 billion over seven years. Strong growth in cloud infrastructure and cybersecurity services also boosted investor sentiment.
- Cloudflare (NET) -23%: Cloudflare plunged despite topping revenue expectations as investors focused on margin pressure and weaker-than-expected guidance. The sell-off highlighted elevated expectations across AI software and cloud infrastructure names.
- CoreWeave (CRWV) -10%: CoreWeave slipped after issuing second-quarter revenue guidance that fell short of Wall Street forecasts. Investors appeared concerned about slowing near-term growth despite ongoing demand for AI cloud infrastructure.
- Coinbase (COIN) -2%: Coinbase declined after weaker crypto trading activity pressured quarterly results. Revenue and profitability both fell sharply year over year as digital asset markets struggled to regain momentum.
AI Stocks Continue to Power the Market
AI remained the driving force behind Wall Street on Friday, with semiconductor and infrastructure companies continuing to attract massive investor inflows. Nvidia, Apple, Alphabet, and the broader “Magnificent Seven” complex traded near fresh highs as investors doubled down on expectations for sustained AI spending. Chipmakers, including Intel, AMD, Micron, Broadcom, and Nvidia, collectively added hundreds of billions in market value as demand for AI servers, memory, and computing power continued to accelerate. The rally also reinforced how concentrated market leadership has become in 2026, with technology and semiconductor stocks carrying much of the broader market higher.
Jobs Data Reinforces Economic Resilience
Friday’s nonfarm payrolls report eased concerns that the economy was weakening too quickly under the pressure of inflation and geopolitical uncertainty. The stronger-than-expected hiring data suggested businesses are still adding workers at a healthy pace despite elevated interest rates and ongoing global instability. Stable unemployment also helped reinforce hopes that the economy could avoid a deeper slowdown while inflation gradually cools.
However, consumer sentiment remains fragile. The University of Michigan’s latest survey showed sentiment falling to a record low as Americans continued worrying about gasoline prices and broader cost-of-living pressures tied to instability in the Middle East.
Oil and Geopolitics Stay Front and Center
Energy markets remained volatile as traders monitored fresh developments involving Iran and the Strait of Hormuz, a crucial global oil shipping route. Crude prices initially rose after reports of renewed military exchanges before stabilizing after President Trump described the latest confrontation as limited and insisted the ceasefire framework remained intact. Investors remain highly sensitive to any disruption that could reignite inflation fears through higher energy prices. Despite the geopolitical uncertainty, Wall Street largely focused on earnings momentum and AI-related growth opportunities, helping major indexes maintain their upward trajectory.
Looking Ahead
Investors now turn toward upcoming inflation data and additional earnings reports to see whether the current tech-led rally can continue driving markets to new highs. AI enthusiasm remains the market’s most powerful theme, particularly across semiconductors, cloud infrastructure, and mega-cap technology stocks. Still, elevated valuations, volatile oil prices, and ongoing geopolitical tensions could create sharper swings in sentiment as markets move deeper into the second quarter.