05/10/2026
Stock indexes settled higher on Friday, with the S&P 500 and Nasdaq 100 posting new record highs. Chipmaker and AI-infrastructure stocks led the overall market higher on Friday, offsetting concerns about the Iran war. Stronger-than-expected corporate earnings are pushing stocks higher. Weakness in software stocks on Friday weighed on the Dow Jones Industrial Average.
Stock indexes also found support today on signs of resiliency in the US labor market after April nonfarm payrolls rose more than expected and March nonfarm payrolls were revised upward. Stocks rallied on Friday despite a larger-than-expected decline in US consumer sentiment to a record low. US Apr nonfarm payrolls rose by +115,000, stronger than expectations of +65,000, and Mar nonfarm payrolls were revised upward to +185,000 from the previously reported +178,000. The Apr unemployment rate was unchanged at 4.3%, right on expectations.
The University of Michigan’s US May consumer sentiment index fell -1.6 to a record low of 48.2 (data from 1978), weaker than expectations of 49.5.
The University of Michigan US May 1-year inflation expectations rate unexpectedly eased to +4.5% from +4.7% in Apr, weaker than expectations of an increase to 4.8%. The May 5-10 year inflation expectations rate unexpectedly eased to +3.4%, weaker than expectations of no change at +3.5%.
In the latest developments in the Middle East, Iran's semi-official Tasnim news agency said Iran seized an oil tanker on Friday in the Strait of Hormuz for "attempting to disrupt oil exports and the interests of the Iranian nation." Also, US forces targeted missile and drone launch sites and other military assets in Iran that were responsible for attacking three US Navy destroyers transiting the Strait of Hormuz. The US is awaiting a response from Iran on a proposed deal to reopen the strait, and President Trump has threatened intense strikes if Iran refuses the deal.
Earnings reports thus far in this reporting season have been supportive of stocks. As of Friday, 83% of the 446 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled lower on Friday. The Euro Stoxx 50 closed down -1.02%. China's Shanghai Composite fell from a 2-month high and closed unchanged. Japan's Nikkei Stock Average closed down by -0.19%.
Here is our US Stock Movers, Chipmakers and AI-infrastructure stocks moved higher on Friday to lift the overall market. Sandisk (SNDK) closed up more than +15% to lead gainers in the Nasdaq 100, and Micron Technology (MU) closed up more than +14%. Also, Intel (INTC) closed up more than +13%, and Advanced Micro Devices (AMD) closed up more than +10%. In addition, Qualcomm (QCOM) closed up more than +8%, and Applied Materials (AMAT), KLA Corp (KLAC), and Marvell Technology(MRVL) closed up more than +5%. Finally, ASML Holding NV (ASML) closed up more than +4%