S&P 500 Reaches New High, Fueled by Chip Stocks and Robust Jobs Data

Deep News05-09 05:12

The S&P 500 index reached a record high for the third time this week, buoyed by strength in semiconductor stocks, robust employment data, and the largely maintained ceasefire between the US and Iran. The S&P 500 rose 0.8%, with five of its eleven sectors advancing, led by the technology sector which surged 2.7%. The Nasdaq 100 Index gained 2.4%, also setting a new all-time high. NVIDIA and Micron Technology moved higher, with Micron Technology soaring 15% to mark its largest single-day gain in over a year. The Philadelphia Semiconductor Index climbed 5.5%, also reaching a record high. Intel shares advanced 14% following reports that the company had reached a preliminary chip production agreement with Apple. AI chipmaker Cerebras is reportedly set to raise its IPO price range due to overwhelming demand. Oil prices were little changed as the US expressed hope for a prompt Iranian response to proposals to end the conflict. US employers added jobs for a second consecutive month in April, marking the first time in nearly a year that job growth has occurred for two straight months. "The solid US jobs report appears to be boosting risk appetite," said Joseph Brusuelas, Chief Economist at RSM. In a note, Adam Crisafulli, founder of Vital Knowledge, stated that US equities rebounded from Thursday's pullback "because the US-Iran ceasefire appears to be holding despite Thursday's skirmish." Improving overall earnings trends and a resurgence in investor sentiment have prompted the Royal Bank of Canada to raise its rolling 12-month target for the S&P 500 from 7,750 to 7,900 points. At the close, the S&P 500 was up 0.8% at 7,398.93 points; The Dow Jones Industrial Average was essentially flat at 49,609.16 points; The Nasdaq Composite Index rose 1.7% to 26,247.08 points; The Nasdaq 100 Index gained 2.4% to 29,234.99 points; The Russell 2000 Index advanced 0.8% to 2,861.209 points.

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