4:15pm: Chips boost
The Nasdaq finished Friday’s session up 1.7% at 26,247 points on the news Intel and Apple have struck a deal to produce chips. The S&P 500 was up 0.8% at 7,392 points while the Dow Jones was little changed at 49,609 points.
3:05pm: Proactive news headlines
- HIVE Digital Technologies Ltd (TSX:HIVE, NASDAQ:HIVE, FRA:YO0, BVC:HIVECO) announced that its subsidiary BUZZ High Performance Computing (HPC) has contracted a new fibre optic network overbuild and carrier transport upgrade at its Grand Falls Data Centre in New Brunswick as part of plans to develop the site into a Tier III high-performance computing facility.
- Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) reported higher first quarter revenue, earnings and production as increased natural gas sales volumes in Brazil helped drive record quarterly sales for the company.
- Abacus Global Management (NYSE:ABX) has reported higher first quarter revenue and earnings and raised its full-year adjusted net income guidance as growth in its longevity-focused investment business continued to drive results.
2.15pm: Market movers
- Draftkings Inc (NASDAQ:DKNG) shares rose about 4% after the company reported mixed first quarter results, with stronger-than-expected revenue offset by a slight earnings miss.
- Block Inc (NYSE:SQ) shares rose about 6.5% after it reported stronger-than-expected first-quarter 2026 earnings, highlighted by solid profit growth and improved margins, despite a slight revenue miss.
- CoreWeave (NASDAQ:CRWV) reported strong first quarter revenue growth that topped Wall Street expectations, but shares fell sharply as wider-than-expected losses and softer forward guidance weighed on sentiment.
- Cloudflare (NYSE:NET) reported first-quarter 2026 results on May 7, beating analyst expectations for both revenue and earnings, but shares fell sharply after the company issued softer near-term guidance and announced a significant restructuring tied to an AI-focused operating model shift.
1:15pm: Sticky inflation risks persist, analysts warn
Deutsche Bank analysts have warned that inflation risks may remain elevated even five years after the initial COVID-era price shock, arguing that optimism around a rapid return to the Federal Reserve’s 2% target could prove premature.
The analysts said personal consumption expenditures (PCE) inflation remains “more than one percentage point above the Fed’s target,” despite expectations that price pressures would ease more decisively over time.
While Deutsche Bank said its base-case forecast still calls for “meaningful disinflation next year,” the firm outlined several factors supporting “a more pessimistic take on the inflation outlook.”
Among those concerns, the bank noted that “trend inflation has not shown clear signs of dipping below 3%,” while demand-side pressures continue contributing to stronger-than-expected inflation readings. Analysts also pointed to artificial intelligence-related investment and spending as a potential inflationary force that “may be conflated with tariff effects.”
The note added that tariff- and supply shock-driven inflation could persist longer than markets currently anticipate. Deutsche Bank also highlighted rising short-term inflation expectations, warning they “may support continued elevated inflation pressures,” even as longer-run expectations remain relatively anchored.
11.30am: Fresh highs
US stocks hit fresh highs on Friday morning amid strong earnings reports and robust labor market data.
“US stock indices powered ahead with several hitting record highs as strong earnings and Friday's positive jobs data offset risks from the war in the Middle East and US consumer sentiment dropping to a record low,” IG chief technical analyst Axel Rudolph said.
“European markets didn't fare so well, though, with particularly Europe's largest economy and stock market - the DAX 40 - extending Thursday's sharp sell-off amid concerns over high energy prices with Brent crude trading back around the $100 mark amid heightened tensions in the Gulf region."
10:15am: Jobs report boosts stocks
A stronger-than-expected jobs report buoyed US stocks on Friday, with the tech-laden Nasdaq leading the way higher, up 1.2% at 26,116 points.
The S&P 500 was up 0.7% at 7,386 points and the Dow Jones added 0.2% at 49,672 points.
“What a week it has been – and it is not over! It started with renewed Middle East tensions, sending oil prices up to $115pb, then tensions eased and markets breathed a sigh of relief thanks to the US’ unwillingness to escalate, while euphoria kicked in on news that even a peace proposal had come to the table,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
Ozkardeskaya added that the week’s most closely monitored earnings “went extremely well.”
“Chip stocks rallied on better-than-expected results from Samsung and AMD, while the Nasdaq renewed record after record,” he said. “The good mood got a further sugar coating from falling sovereign yields, as declining oil prices also pulled inflation expectations lower and softened central banks’ policy outlooks.”
8:45am: Jobs report tops estimates
US job growth topped expectations in April while the unemployment rate held steady, according to data released Friday by the Bureau of Labor Statistics.
Nonfarm payrolls increased by 115,000 in April, above economists’ expectations for a gain of 65,000, based on a Bloomberg survey. The unemployment rate was unchanged at 4.3%.
March payroll growth was revised higher to 185,000 from 178,000, while February’s figure was revised to a decline of 156,000 jobs.
The April gain was lower than March’s revised total but continued a stronger hiring trend in 2026 compared with last year, when employers added an average of about 15,000 jobs per month.
8:00am: Futures point higher
US stocks are set for a positive open on Friday, with futures pointing higher as Wall Street looks ahead to April's non-farm payrolls report, even as tensions in the Middle East flared overnight.
Nasdaq futures are up 0.7%, S&P 500 futures have gained 0.5%, and Dow futures are 0.3% higher. That follows a quiet session on Thursday, when all three indexes pulled back modestly from record highs: the Dow fell 0.6%, the S&P slipped 0.4%, and the Nasdaq edged 0.1% lower.
The jobs number is the main event this morning. Deutsche Bank's Jim Reid notes that Fed pricing has already shifted in a hawkish direction given the energy shock, and last month's payrolls came in at a 15-month high of 178,000. This time, the bank's economists are forecasting just 50,000 new jobs, which would still mark the first back-to-back positive reading since May last year, with unemployment expected to hold steady at 4.3%.
The geopolitical backdrop remains uncomfortable. Reid flags a clear escalation overnight, with the US striking targets in Iran after Iranian forces fired on three US warships in the Strait of Hormuz. President Trump responded with characteristic bluntness, warning of far harder strikes "if they don't get their Deal signed, FAST."
Brent crude spiked 1.6% to $101.64 a barrel on the news before pulling back to around $100.
In Europe, London's FTSE 100 has come under pressure, currently down 0.2%, as investors weigh up the fresh escalation in the Middle East and a difficult night for the ruling Labour party in the UK's local government elections. In Paris, the CAC 40 is down 0.8%, while the DAX in Frankfurt is down by a similar margin.
Asian markets were mostly lower, with Tokyo's Nikkei shedding 0.2%, Hong Kong's Hang Seng falling 0.8%, and the Shanghai Composite closing almost unchanged. In Seoul, the Kospi gained 0.1% and Sydney's ASX 200 closed 1.5% in the red.