* US job growth beats expectations, S&P, Nasdaq hit
records
* Intel shares surge on Apple deal report
* Brent hovers near $100/barrel on renewed Mideast
hostilities
* U.S. consumer sentiment slumps
(Updates to U.S. market close)
BOSTON/LONDON, May 8 (Reuters) – Global equities were
mixed, while the dollar weakened on Friday, as new U.S. data
showed domestic job growth, although consumer sentiment fell and
oil prices remained elevated on continued fighting near the
Strait of Hormuz.
European stocks dipped, but the S&P 500 added 0.8%, and
the Nasdaq Composite rose1.7% to fresh records. The Dow
Jones Industrial Average was little changed.
Chipmakers recovered, including Qualcomm, up about 8%,
while Nvidia was 1.75% higher. Intel shares
surged around 14% on a Wall Street Journal report that it had
reached a preliminary agreement with Apple to
manufacture some of the chips that power the iPhone maker’s
devices.
Brent crude futures jumped as much as 3% on Friday, a day
after the U.S. and Iran traded air strikes, but pared gains as
traders hoped for a longer pause in the fighting. Brent crude
futures settled at $101.29 a barrel, up 1.23%
U.S. employment increased more than expected in April while the
unemployment rate held steady at 4.3%, pointing to labor market
resilience.
“More solid jobs data leaves the Fed where it’s been for a
while – watching and waiting, focused on the inflation side of
its mandate,” said Ellen Zentner, chief economic strategist for
Morgan Stanley Wealth Management. “Rate cuts still aren’t on the
near-term horizon, but the absence of inflationary threats in
today’s report should quiet some of the chatter about a
potential hike.”
At the same time, U.S. consumer sentiment slumped to a record
low in early May as higher gasoline prices weighed on household
finances and purchasing power, a survey showed on Friday.
MIDDLE EAST CLASHES
The U.S. and Iran exchanged fire in the Gulf and the UAE came
under renewed attack, testing a month-long ceasefire. Both sides
played down the situation, leaving investors uncertain.
“The market seems to be taking every chance to price in a
quick end to the war,” said Jan von Gerich, chief analyst at
Nordea.
“But it seems unlikely there’s going to be an agreement. I
still think there are going to be disruptions in the Strait (of
Hormuz) for a longer time and it won’t be resolved any time
soon.”
European stocks were lower, with the pan-continental STOXX 600
down 0.7%.
Asian equities slipped from recent highs after a robust
week, supported by strong revenue and spending plans from U.S.
AI hyperscalers, which have boosted regional chipmakers.
MSCI’s broadest index of Asian shares outside Japan
fell 0.8%, although South Korea’s KOSPI
inched up 0.1%, bringing its weekly gain to more than 13.5% –
its largest since 2008 – helped by rallies in Samsung
and SK Hynix.
Taiwan’s benchmark was up 7% this week and Japan’s Nikkei
rose 5.4%.
DOLLAR INCHES LOWER
The dollar edged lower for a second straight weekly decline,
while the yen remained in focus after Japan intervened in
currency markets in early May to stem its slide, a source
familiar with the matter told Reuters.
The dollar fell0.1% to 156.73 yen, a second weekly fall
against Japan’s currency. Gains beyond 155 have proved difficult
to sustain following suspected intervention totalling nearly $70
billion since last Thursday.
The euro rose about 0.5%to $1.177, while China’s yuan
, Asia’s best-performing currency since the war broke
out, hovered near 6.8 per dollar, close to its strongest since
2023.
The pound and UK government bonds climbed on Friday after
British Prime Minister Keir Starmer said he would not resign
despite bruising losses for his ruling Labour Party in local
elections.
TARIFFS
A U.S. trade court ruled on Thursday that President Donald
Trump’s latest 10% temporary global duties are unjustified under
a 1970s trade law. But the administration appealed the ruling on
Friday, and analysts expect little overall impact on U.S.
levies.
Treasury yields were slightly lower on Friday, with the
benchmark 10-year yield at 4.364%, down 3 basis
points.
Bitcoin continued its resurgence, last hitting $80,101,
up nearly 14% over three months.
(Reporting by Lawrence Delevingne in Boston, Samuel Indyk in
London and Tom Westbrook in Singapore. Editing by Elaine
Hardcastle, Mark Potter, Toby Chopra, Nick Zieminski, Chizu
Nomiyama and Cynthia Osterman)
QUALCOMM
NVIDIA
Apple
