AI and Semiconductor Sectors Continue to Lead Gains, US Stocks Hit New Highs

Strong employment data and the AI chip deal boom have jointly propelled US stocks to reach new historical highs again on Friday, with the S&P 500 Index recording gains for the sixth consecutive week.

Meanwhile, expectations for peace talks in the Middle East have压抑ed oil prices, with US Treasury yields fluctuating, the dollar weakening, and gold prices rising.

US non-farm employment data for April came in better than expected, with the unemployment rate remaining unchanged at 4.3%, demonstrating the job market's resilience to energy shocks. Northlight Asset Management's Chris Zaccarelli stated:

The economy is performing far better than the bears suggest, and despite facing multiple headwinds such as high oil prices, sticky inflation, and long-term high interest rates, the job market continues to add positions.

Nevertheless, the strong job data did not change the market's judgment that the Federal Reserve will maintain a wait-and-see approach. Money market pricing shows that the Federal Reserve is expected to stand pat this year. Ellen Zentner, Chief U.S. Investment Strategist at Morgan Stanley Wealth Management, said:

Strong employment data keeps the Fed in its existing stance - observe and wait, focusing on the inflation side. Lower rates in the short term are still not on the agenda.

Lindsay Rosner from Goldman Sachs Asset Management also noted, "Strong data and inflation pressures have essentially ruled out the possibility of easing in the near term, but this judgment will change along with the developments of the Middle East situation and the direction of energy prices."

The S&P 500 Index rose by 0.8% on Friday, with chip stocks fueling a 1.7% surge in the Nasdaq Index, while the Dow Index remained essentially flat.

Intel's stock soared by about 14% on Friday due to reports of a preliminary chip manufacturing agreement with Apple, Nvidia rose by 1.75%, and Qualcomm gained about 8%. The performance of the seven technology giants outperformed the remaining 493 components of the S&P by a wide margin.

The US banking sector underperformed, with Wells Fargo down 3.8%, Bank of America down 2.6%, JPMorgan Chase down 1.7%, and Credit Suisse down 1.5%.

Goldman Sachs' Christian DeGrasse pointed out that the revision of the US CLARITY Act may benefit the cryptocurrency sector, thereby suppressing the performance of the US banking sector.

For the week, technology stocks outperformed other sectors significantly, while energy stocks suffered heavy losses.