Today’s Market Recap: AI Breakthroughs and Resilient Jobs Data Propel Nasdaq to Record Highs

Track the Market Trend

TradingKey - The S&P 500 gained 0.76% to close at 7,392.56, while the Nasdaq Composite surged 1.71% to a record high of 26,247.08. The Dow Jones Industrial Average also inched up 0.02% to 49,609.16, as robust employment data and leadership in the AI sector fueled market growth.

Iren (IREN), a developer and operator of renewable-powered data centers for Bitcoin (BTC) mining and AI cloud services, finished Friday at $61.2, a gain of 7.65%. The stock climbed following the announcement of a multi-year partnership with Nvidia (NVDA) and the unveiling of significant AI cloud expansion initiatives. Investors are focused on the scaling of contracted AI infrastructure agreements and the integration of the company's recent acquisitions. Trading volume hit 108.3 million shares, roughly 187% above its three-month average of 37.7 million. Since its IPO in 2021, Iren has appreciated 150%.

Micron Technology (MU) extended its rally, climbing 16% as momentum continued across memory-focused stocks. Intel (INTC) also saw gains amid reports of a preliminary chip-manufacturing agreement with Apple (AAPL).

Rackspace Technology (RXT), an end-to-end multi-cloud services provider, closed at $5.49, surging 55.97%. The share price spiked after the company announced an AI cloud infrastructure partnership with AMD (AMD) aimed at providing governed enterprise AI for regulated clients; market participants are now evaluating how this collaboration will impact future demand.

Rocket Lab (RKLB), a provider of launch services and space systems, ended Friday at $105.55, up 34.32%. The stock jumped after record-breaking first-quarter revenue exceeded expectations, with guidance suggesting another record-setting quarter ahead. Investors are closely monitoring how the company’s expanding backlog will translate into long-term growth and sustained margins.

Market Headline

On Friday, May 8, the U.S. Secretary of State urged the commencement of a "serious negotiation process" as the U.S. military opened fire on Iranian tankers for "violating the blockade." Iran stated that while the exchange of fire in the Gulf has ceased, there is a risk it could reignite. Senator Marco Rubio noted that a response from Iran is expected on Friday, expressing hope for a "serious and earnest proposal." The U.S. military confirmed that the firing successfully prevented two Iranian tankers from entering an Iranian port in the Gulf of Oman; over 50 vessels have been forced to divert since the U.S. blockade began.

U.S. non-farm payrolls surged by 115,000 in April, significantly exceeding the anticipated 65,000 and marking the largest two-month gain since late 2024. While the unemployment rate remained steady at 4.3% — matching the March figure — wage growth slowed to 3.6% year-over-year, easing some inflationary concerns. Despite a rise in the broad unemployment rate to 8.2% and a decline in labor participation, the overall resilience of the data provides the Federal Reserve with room to observe inflationary pressures triggered by the conflict with Iran, further reducing the immediate urgency for interest rate cuts.

U.S. consumer confidence hit record lows for the second consecutive month as rising oil prices and tariffs intensified inflation anxieties. The University of Michigan’s preliminary consumer sentiment index for May fell more than expected to 48.2, down from 49.8 in April; personal financial assessments reached their worst levels since 2009. Meanwhile, inflation expectations remain elevated, with consumers anticipating price increases of 4.5% over the next year and 3.4% over the next five to ten years. Survey directors noted that roughly one-third of respondents specifically cited gasoline prices and tariffs as primary concerns.

Federal Reserve Governor Adriana Kugler expressed hope that Jerome Powell’s continued tenure as a Governor would be brief, stating she hopes there are no "sinister plots" involved. Kugler characterized Powell’s decision to remain on the Board as a "transition period" for the change in leadership, warning against internal "loyalty divides" or a multi-headed leadership structure. Simultaneously, she issued strong dovish signals, advocating for rate cuts to reduce the suppression of employment and calling for less forward guidance to enhance policy flexibility.

British Prime Minister Keir Starmer declared he will "never resign," triggering a rebound in British government bonds as markets bet that the "worst-case scenario" has passed. Despite a heavy defeat for the Labour Party and the rapid rise of the Reform Party in local elections, Starmer’s firm stance successfully stabilized market sentiment. Gilt yields fell and the pound rebounded as investors ruled out the immediate risk of a Starmer departure followed by fiscal loosening. However, risks associated with political fragmentation and the potential relaxation of fiscal discipline remain.

TSMC (TSM) reported April revenue of NT$410.7 billion, a 17.5% year-over-year increase. While the growth rate slowed from 45.2% in March and revenue edged down 1.1% month-over-month, cumulative revenue for the first four months reached NT$1.5448 trillion, up 29.9% year-over-year. Supported by a wave of AI capital expenditures from tech giants like Alphabet (GOOGL) and Amazon (AMZN) totaling $725 billion, TSMC has maintained its full-year capital expenditure guidance with an upper limit of $560 billion.

Top 10 Most Traded Stocks

The chart below lists the ten most actively traded stocks in the market last Friday. Bolstered by massive trading volume and exceptional liquidity, these assets have become key benchmarks for tracking global market dynamics.