S&P 500 and Nasdaq Hit Record Highs on Strong April Jobs Report; Consumer Sentiment Plummets to Historic Low
U.S. stock markets surged to all-time record highs Friday as the April jobs report beat expectations with 115,000 jobs added, but consumer sentiment crashed to a historic low due to soaring gas prices from the Iran war.
Markets Rally on Jobs Surprise Despite Consumer Pessimism
The tech-heavy Nasdaq Composite rose 1.7% while the S&P 500 rose 0.8%, with both averages posting all-time record highs to cap six straight weeks of wins.
Jobs Report Beats Expectations
The U.S. added 115,000 jobs in April, well above expectations for 65,000, while unemployment held steady at 4.3%. Market sentiment got a lift after the April jobs report showed the US economy added 115,000 jobs, far better than expected.
Consumer Sentiment Collapses
Despite stock market strength, consumer confidence deteriorated sharply. Surging gas prices due to the Iran war sent consumer sentiment to a new low in the early part of May, according to a University of Michigan survey Friday. The school's closely watched Survey of Consumers posted a 48.2 preliminary reading, down 3.2% from April's prior record swoon.
Chip Stocks Lead Rally
Shares of chipmakers rallied on Friday afternoon after the Wall Street Journal reported that Apple and Intel agreed to a deal that would see Intel provide chips for some of Apple's devices. Intel stock soared 13% on the news, and Apple rose 1.8%.