Wall Street Hits Record High as AI Chip Stocks and Strong U.S. Jobs Data Boost Markets

Wall Street closed at fresh record highs on Friday as investors reacted positively to stronger-than-expected U.S. jobs data and a rally in semiconductor stocks. The S&P 500 rose 0.8% to 7,396.79, while the Nasdaq Composite surged 1.7% to 26,247.08, both reaching all-time highs. The Dow Jones Industrial Average ended nearly flat at 49,609.04 as declines in McDonald’s and Salesforce weighed on the index.

Investor sentiment improved after the U.S. Labor Department reported that nonfarm payrolls increased by 115,000 in April, exceeding analyst expectations of 65,000. The unemployment rate remained steady at 4.3%, signaling continued resilience in the U.S. economy despite concerns over inflation and rising oil prices linked to tensions in the Middle East. Analysts noted that inflationary pressure and geopolitical uncertainty could still impact future economic growth.

AI-related technology stocks led market gains, with companies such as Intel, AMD, and Micron Technology posting strong performances. Intel shares jumped nearly 14% following reports of a preliminary chip manufacturing agreement with Apple. The continued enthusiasm surrounding artificial intelligence and strong corporate earnings helped offset concerns about the ongoing U.S.-Iran conflict in the Strait of Hormuz, a critical global oil shipping route.

Meanwhile, oil prices remained elevated amid escalating military activity between the U.S. and Iran. Brent crude traded above $100 per barrel as investors monitored developments in the region. Despite the geopolitical risks, market participants remained focused on robust earnings growth and the strength of the technology sector. Analysts believe the AI-driven profits boom and stable labor market continue to support the broader stock market rally heading into the second half of 2026.