Futures linked to the Dow Jones rose 181 points, or 0.4%, while S&P 500 and Nasdaq 100 futures climbed 0.6% and 0.9%, respectively. The gains were led by chipmakers, with Micron Technology surging nearly 4% and Qualcomm jumping 6%, extending its winning streak to a fourth straight session.
Investor sentiment got a boost after the US Bureau of Labor Statistics said nonfarm payrolls increased by 115,000 in April, sharply ahead of Dow Jones estimates of 55,000. The unemployment rate held steady at 4.3%, matching Street expectations.
The upbeat labour data added to optimism around the broader market, which has already been buoyed by a strong earnings season. The Nasdaq is now on track to gain 2.8% this week, while the S&P 500 is headed for a 1.5% weekly rise. The Dow Jones, however, has underperformed with gains of just 0.2% so far this week.
Chip stocks continued to remain in focus amid the ongoing AI-led rally, helping offset concerns stemming from geopolitical tensions in the Middle East.
Oil prices edged higher after fresh military exchanges between the US and Iran in the Strait of Hormuz. West Texas Intermediate crude futures rose 0.3% to hover around $95 per barrel.
The latest flare-up came after the US and Iran accused each other of initiating attacks near the key shipping route. The US Central Command said its forces intercepted “unprovoked Iranian attacks” and carried out “self-defense strikes” while three US Navy destroyers were transiting the region.
US President Donald Trump claimed in a Truth Social post that there was “no damage done” to the destroyers and described the retaliatory strikes as “just a love tap”, while insisting that the ceasefire remained intact.
Meanwhile, US Secretary of State Marco Rubio said Washington could receive clarity from Iran “today” regarding the proposed peace framework. His remarks came after Iranian state media reported that Tehran was reviewing messages sent by the US through Pakistani mediators but had not reached a conclusion yet.
The developments come amid heightened uncertainty in the region after Iranian officials reportedly warned that Tehran would not allow the US to reopen the Strait of Hormuz under what it called an “unrealistic plan”. Iranian state media also said the country would seek reparations for damages caused during the conflict.
Despite the geopolitical overhang, markets have largely remained resilient on the back of strong corporate earnings, particularly from technology companies. PNC Asset Management chief investment strategist Yung-Yu Ma said the momentum from earnings is likely to continue in the near term.
