US Stocks Climb Near Record High Amid Surprise Payrolls Increase, Boosting Chip Sector

US Stocks on Track for Record Closing High Amid Strong Payrolls and Iran Ceasefire

The US stock market was poised to reach a record closing high on [current date], driven by semiconductor stocks, strong monthly payrolls figures, and a US-Iran ceasefire that appeared intact despite overnight clashes near the Strait of Hormuz.

The S&P 500 Index rose 0.5% at 9:38 a.m. in New York, with seven of 11 sectors in the green, led by the tech sector. The Nasdaq 100 Index added 1%. Heavyweight chip stocks, including Nvidia Corp., Micron Technology Inc., and Qualcomm Inc., rose, while Microchip Technology Inc. gained 0.52% after its earnings beat estimates. The Philadelphia Semiconductor Index, known as the SOX, rose 3.4%.

Oil prices were relatively stable, with West Texas Intermediate crude oil down about 0.3% to around $95 a barrel. The US government stated that it expected an imminent response from Iran on its proposal to end the war.

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The strong US jobs report for April marked the first back-to-back advance in nearly a year, with employers adding to payrolls. This development contributed to increasing risk appetite among investors, according to RSM Chief Economist Joseph Brusuelas.

US equities rebounded from Thursday's dip as the Iran ceasefire appeared to be holding despite the exchange of fire on Thursday. The federal trade court's finding that President Donald Trump's 10% global tariffs were unlawful also had a positive impact. Vital Knowledge founder Adam Crisafulli noted that equities investors may be looking through the Iran conflict.

Goldman Sachs strategist Christian Mueller-Glissmann highlighted strong earnings and the potential for investors to overlook the Iran conflict. Many clients, he said, do not take a view on the conflict.

In earnings news, payments company Block Inc. climbed 5.7% on a rosier outlook after AI-driven job cuts. Akamai Technologies Inc. soared 18% as it raised the outlook for its Cloud Infrastructure Services business after announcing a deal with a leading frontier AI-model provider. AI data-center operator CoreWeave Inc. fell 9.5% after a disappointing forecast sparked concerns about slowing growth.

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The overall earnings trends and better investor sentiment prompted RBC to raise its rolling 12-month-forward price target for the S&P 500 to 7,900 from 7,750. Strategist Lori Calvasina sees "more upside potential as stocks climb the proverbial wall of worry."

In the consumer sector, Bank of America US economist Aditya Bhave stated that card-spending growth per household slowed sharply across most categories (besides gas) and across income cohorts last week. Unlike other blips this year, this one cannot be easily explained by weather disruptions or shifting holidays.