US Stocks Hit New Highs on Strong Earnings, Jobs Data; Intel Soars

Wall Street experienced a robust trading session, culminating in record highs for both the S&P 500 and Nasdaq indices. The market's upward momentum was fueled by a combination of encouraging corporate financial reports and a surprisingly strong US jobs report, which reinforced expectations that the Federal Reserve will maintain current interest rates for the foreseeable future. Investors appear to be largely overlooking the inflationary pressures stemming from elevated oil prices and ongoing Middle East tensions.

The technology sector, particularly companies involved in artificial intelligence, was a standout performer. Intel experienced a dramatic surge, climbing nearly 14%, while Nvidia also saw gains. This sector-wide enthusiasm propelled the Philadelphia Semiconductor Index to a significant increase of over 5.5%. However, not all tech giants shared in the success, as Taiwan Semiconductor Manufacturing Company (TSMC) ADR experienced a minor pullback, closing down 0.60%.

The US employment data indicated that job growth in April exceeded expectations, with the unemployment rate holding steady at 4.3%. This stability further solidifies the market's belief that the Federal Reserve will keep its benchmark interest rate within the 3.50% to 3.75% range through the end of the year. Meanwhile, Brent crude oil prices surpassed $100 per barrel, reflecting diminishing hopes for a swift resolution to Middle East conflicts and the reopening of the Strait of Hormuz.