Stocks maintained their bullish momentum on Friday, welcoming a strong jobs report for April while brushing off a decline in Apple’s shares. Instead of being overly influenced by earnings reports, particularly from giants like Apple, the market seemed energized by the news that 177,000 jobs were added during the month, significantly exceeding expectations of 130,000.
The Dow Jones Industrial Average surged over 400 points, marking a 1.1% increase, while the S&P 500 and Nasdaq composite saw gains of 1.3% each. Notably, the Russell 2000 small-cap index led the pack with a 1.5% uptick.
On the Dow, tech stocks like Microsoft and Nvidia were standout performers, each rising by over 2%. Microsoft capitalized on a positive earnings report from the previous day, while Nvidia’s future remains uncertain after hitting resistance at its 50-day moving average. For Nvidia to regain its upward trajectory, it must break above its 200-day moving average, currently near the $125 mark. Despite strong performances from companies like Meta Platforms and Microsoft, concerns linger over Nvidia’s ability to sustain growth.
In another tech sector highlight, Oracle’s shares rose by approximately 4%, even as the stock grapples with a 40% pullback from earlier highs.
The encouraging jobs report provided a bullish backdrop for the market, as the unemployment rate remained steady at 4.2%. Meanwhile, average hourly earnings grew by 3.8%, slightly below the anticipated 3.9%. Market sentiment was further buoyed by hints from China regarding potential trade discussions with the U.S.
Trading activity reflected this optimism, with volume slightly up on both the New York Stock Exchange and Nasdaq. Advancers enjoyed a significant lead over decliners, with a nearly 3-to-1 ratio on the Nasdaq and a 5-to-1 ratio on the NYSE.
In fixed income, the 10-year Treasury yield remained largely stable around 4.23% prior to the jobs report but saw a six-basis-point rise to 4.29% following the data release. This uptick came ahead of the Federal Reserve’s upcoming meeting, where it’s widely expected that interest rates will remain unchanged in the 4.25% to 4.5% range. President Trump reiterated his call for the Fed to cut interest rates.
Apple’s stock, however, fell over 3% despite reporting better-than-anticipated earnings and iPhone revenue. Investors were more attentive to comments from CEO Tim Cook, who warned of $900 million in additional costs due to expected tariffs.
In earnings news, Amazon’s shares fluctuated slightly downward despite reporting strong top-line and bottom-line growth. Its Amazon Web Services (AWS) arm grew by 17%, albeit falling short of the $29.45 billion analysts had projected.
On a positive note, Duolingo’s stock has been on a remarkable ascent, with first-quarter revenue growing by 38% year-over-year to $230.7 million. Following a 17% spike last week, shares surged nearly 20% this week, breaking out of an early-stage 11-week cup base.
Additionally, the MarketSurge Growth 250 revealed several other breakout stocks among leading growth companies, including Kratos Defense & Security, which climbed over 5% after exceeding a 14-week consolidation ahead of its earnings report.
Overall, the aerospace and defense sector is currently buzzing with leaders, including noted stocks like Loar and Carpenter Technology, suggesting a robust environment for strategic investments in these areas.
