US sharemarkets jumped on Friday after stronger-than-expected US employment data reinforced confidence in the economy, while investors continued monitoring developments in the Iran war.
The S&P 500 gained 0.84% to close at 7,398.93, while the Nasdaq Composite climbed 1.71% to 26,247.08. Both indices reached fresh intraday record highs and finished at record closing levels. The Dow Jones Industrial Average edged up 12.19 points, or 0.02%, to 49,609.16.
Markets were supported by April payrolls data, with the Bureau of Labor Statistics reporting that nonfarm payrolls increased by 115,000, comfortably ahead of expectations for 55,000 new jobs. The unemployment rate held steady at 4.3%, in line with forecasts.
All three major US indices posted weekly gains, supported by a strong earnings season and continued momentum in artificial intelligence-related sectors. The Nasdaq rose 4.5% for the week, while the S&P 500 added 2.3%, with both benchmarks recording a sixth consecutive weekly advance. The Dow lagged, rising 0.2% over the week.
Investor sentiment was also shaped by ongoing developments between the US and Iran after both sides exchanged fire in the Strait of Hormuz. US Central Command said military forces intercepted Iranian attacks and responded with self-defence strikes as US Navy destroyers moved through the waterway.
President Donald Trump later said there had been “no damage done” to the destroyers and described the US response as “just a love tap”, while insisting the ceasefire remained in effect.
Investors also awaited Iran’s response to a US proposal aimed at ending the conflict. Secretary of State Marco Rubio said on Friday that the US expected further clarity “today”.
Artificial intelligence-linked stocks continued to outperform despite broader concerns about valuations and geopolitical risk. Memory chipmakers Micron Technology and Sandisk surged 15% and 16% respectively on Friday, with Micron posting a weekly gain of nearly 38%.
Oil prices edged higher as investors monitored renewed hostilities between the US and Iran in the Strait of Hormuz.US West Texas Intermediate crude rose 0.64% to settle at US$95.42 a barrel following the exchange of fire between US and Iranian forces in the key shipping passage.
Australian Market Outlook
Australian shares are expected to extend recent losses on Monday as higher oil prices and ongoing uncertainty surrounding the Iran war weigh on investor sentiment.
SPI futures point to a fall of 42 points, or 0.5%, at the open, following Friday’s sharp sell-off which wiped almost $50 billion from the local market.
Investors remain concerned that Australia could be disproportionately exposed to any prolonged closure of the Strait of Hormuz due to the country’s reliance on imported refined fuel.
Locally, CSL will remain in focus after revising down its FY26 earnings guidance citing weaker immunoglobulin sales in the US, pricing pressure in China and softer contributions from parts of its Vifor and iron businesses.
