FINWIRES · TerminalLIVE
FINWIRES

Equities Rise Intraday as Markets Parse Jobs Report; Middle East Tensions Send Oil Higher

By
Equities Rise Intraday as Markets Parse Jobs Report; Middle East Tensions Send Oil Higher

US benchmark equity indexes were higher intraday as traders parsed the latest jobs report, while oil prices climbed amid renewed tensions in the Strait of Hormuz.

The Nasdaq Composite was up 1.6% at 26,214.4 after midday Friday, while the S&P 500 rose 0.8% to 7,399.1. The Dow Jones Industrial Average was up 0.1% at 49,621.5. Among sectors, technology paced the gainers with a 2.7% jump, while healthcare saw the steepest drop.

Total nonfarm payrolls rose by 115,000 last month, the Bureau of Labor Statistics said, well above the 65,000 increase expected in a Bloomberg-compiled survey.

"There is nothing in this (nonfarm payrolls) report to move the Federal Reserve off the sidelines on future rate cuts," BMO said in a note. "On balance, the solid jobs report makes the case for a near-term rate cut to stabilize a deteriorating labor market a more remote possibility."

Separately, TD Economics said the pace of job growth appears to have improved since the end of last year, though "it's too soon to say whether the labor market is regaining momentum."

West Texas Intermediate crude was up 1.2% at $95.95 per barrel, while Brent advanced 1.3% to $101.35.

The US Central Command said Friday it fired on two Iranian-flagged oil tankers trying to bypass an ongoing blockade.

Washington expects Iran to respond Friday on a proposal to end the war, CNN reported, citing US Secretary of State Marco Rubio, who added that he hopes "it's a serious offer."

A ceasefire is still in effect, the news outlet reported, citing US President Donald Trump. US forces earlier said they targeted military facilities in Iran responsible for attacking its warships in the strait, according to the report.

"Brent crude trades firmer, holding above $100 after another volatile week that saw an almost $20 trading range as Middle East headlines swung sentiment between optimism and frustration," Saxo Bank said in a report Friday. "The key point remains unchanged: the Strait of Hormuz remains effectively closed, with renewed clashes between US and Iranian forces lowering the prospect of a near-term reopening."

US Treasury yields were lower intraday, with the 10-year rate down 2.8 basis points at 4.37% and the two-year rate easing 2.4 basis points to 3.90%.

In other economic news, US consumer sentiment continued to fall in May as cost pressures tied to the Middle East conflict sent the measure tumbling to all-time lows, a survey by the University of Michigan showed.

"Consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump," Surveys of Consumers Director Joanne Hsu said. "Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall."

In company news, Fluor (FLR) reported weaker-than-expected first-quarter results, while the engineering and construction company lowered the top end of its full-year earnings outlook. The company's shares were down 15% intraday.

Among big tech names, Intel (INTC) was up nearly 14%, among the top gainers on the S&P 500, while Nvidia (NVDA) rose 2%, the third-best performer on the Dow. Apple (AAPL), Amazon.com (AMZN), Micron Technology (MU) and Dell Technologies (DELL) were also advancing.

Gold was up 0.3% at $4,724 per troy ounce, while silver advanced 0.6% to $80.65 per ounce.

Related Articles

US Markets

Japan Services Activity Hits 11-Month Low as Middle East Conflict Drives Input Costs to One-Year High

Japan's service sector growth slowed to an 11-month low in April as rising costs and weaker demand weighed on activity, while companies raised prices at one of the fastest rates on record, adding to concerns over mounting inflationary pressure ahead of a possible Bank of Japan rate increase.The au Jibun Bank Japan Services PMI business activity index fell to 51 in April from 53.4 in March, marking the weakest expansion since May 2025, according to data compiled by S&P Global Market Intelligence. A reading above 50 indicates growth.New business growth also softened to the slowest pace since October, while export demand contracted for the first time in five months as uncertainty linked to the Middle East conflict and elevated prices weighed on overseas sales.At the same time, input costs rose at the fastest rate in a year, driven largely by higher fuel and import expenses tied to the conflict and a weaker yen. Companies passed those costs on to customers, pushing selling prices to the third-steepest increase since the survey began in 2007.The broader composite PMI, which combines manufacturing and services activity, eased to 52.2 from 53, though manufacturing output expanded at the fastest pace in more than 12 years amid front-loaded demand."Underlying data indicated that the slowdown stemmed from more subdued growth across the service sector, as manufacturers reported the quickest rise in output in over 12 years amid reports of front-loading due to thewar in the Middle East," said S&P Global Market Intelligence's Economics Associate Director Annabel Fiddes.The data adds to signs that Japan's economy is entering a more difficult phase for policymakers, with slowing activity coinciding with persistent inflation pressure."The business mood continued to be dampened by lingering uncertainty over the war and the possibility of future price hikes and softer customer demand. Notably, optimism around the year-ahead slipped to the lowestsince the COVID-19 pandemic in August 2020," Fiddes added.Separate government data showed real wages in March rose 1% from a year earlier for a third straight monthly increase, while nominal wages climbed 2.7% to 317,254 yen. However, wage gains continued to lag inflation, with consumer prices rising 1.6%.The combination of softer services demand and accelerating price pressures could complicate the Bank of Japan's policy outlook as markets increasingly price in a possible rate increase in June. The central bank kept interest rates unchanged in April but warned that inflation could overshoot expectations as companies continue shifting toward higher wages and prices.

Nikkei 225
US Markets

S&P 500, Nasdaq Snap 2-Day Record Run as Oil Prices Rise in Volatile Session

The S&P 500 and the Nasdaq Composite fell from record closing highs on Thursday as oil prices rose in what turned out to be a choppy trading session for crude.The S&P 500 closed 0.4% lower at 7,337.1, while the Nasdaq slipped 0.1% to 25,806.2. The Dow Jones Industrial Average dropped 0.6% to 49,597. All three indexes snapped a two-day advance that propelled the S&P 500 and the Nasdaq to all-time highs.Barring communication services and technology, all sectors were in the red, led by materials and energy.West Texas Intermediate crude was last up 0.7% at $95.73 a barrel, swinging between gains and losses during Thursday late-afternoon trade. Brent was up 0.1% at $101.36. Both benchmarks fell sharply Wednesday amid prospects of a diplomatic breakthrough between the US and Iran.Iran is still reviewing "messages" from the US via Pakistani mediation, CNN reported, citing Iranian media. Tehran has set out new rules for ships looking to transit ross the crucial Strait of Hormuz, the news outlet reported."Markets continue to be cautiously optimistic toward the prospect of a US-Iran deal to end the war despite the appearances of the US administration pumping the deal vastly more than the other side," Scotiabank said in a note.US Treasury yields were higher, with the 10-year rate up 4.5 basis points at 4.40% and the two-year rate rising 5.4 basis points to 3.92%.In company news, Tapestry (TPR) raised its fiscal 2026 outlook after delivering a third-quarter beat, but provided a subdued fourth-quarter sales guidance for its Kate Spade brand. The luxury fashion company's shares slumped 12%, the second-worst performer on the S&P 500.Planet Fitness (PLNT) shares slid 31% after the fitness center operator tempered its full-year expectations amid fewer-than-projected member additions in the first quarter.Shake Shack (SHAK) shares plummeted 28% after the fast food chain operator's first-quarter results fell short of Wall Street's estimates amid weather-related headwinds.Datadog (DDOG) shares surged 31%, the top gainer on the S&P 500. The software maker raised its full-year outlook after posting first-quarter results that topped the Street expectations.In economic news, US job cuts increased in April to the third-highest total for the month since 2009 as technology companies continued to announce layoffs amid a shift toward artificial intelligence, Challenger Gray & Christmas said Thursday.The report comes ahead of the official April nonfarm payrolls data to be released on Friday.Official data are expected to show that the US economy added 65,000 nonfarm jobs in April, compared with a 178,000 increase reported for the previous month, according to a Bloomberg-compiled consensus. On Wednesday, ADP (ADP) said that employment in the US private sector grew at its fastest pace in more than a year.Gold was up 0.3% at $4,709.90 per troy ounce in Thursday late-afternoon trade, while silver jumped 2.7% to $79.40 per ounce.

Dow JonesNasdaq CompositeS&P 500$ADP$DDOG$PLNT$SHAK$TPR
US Markets

Airbnb Trails First-Quarter Earnings Views, Beats on Revenue Amid Demand Strength

Airbnb's (ABNB) first-quarter earnings lagged Wall Street's estimates, while the vacation rental company reported higher-than-expected revenue amid demand momentum.Earnings per share rose to $0.26 from $0.24 a year earlier, but trailed the FactSet-polled consensus of $0.30. Revenue increased 18% year-over-year to $2.68 billion, above the Street's $2.62 billion view.Revenue benefited from strong growth in nights stayed and "a meaningful increase" in average daily rate, Airbnb said in a shareholder letter.Gross booking value, which includes host earnings, service and cleaning fees and taxes, advanced 19% annually to $29.2 billion, compared with $27.82 billion modeled by analysts.Nights and seats booked grew 9% to 156.2 million, compared with the Street's 155.8 million view. The metric represents the total number of nights booked for stays and seats booked for services and experiences, net of cancellations and alterations."We're navigating a period of macroeconomic and geopolitical uncertainty," the company said. "We saw that show up in slightly elevated cancellations this quarter in (Europe, the Middle East, and Africa) and Asia Pacific, primarily driven by the conflict in the Middle East."For the second quarter, Airbnb forecast revenue of $3.54 billion to $3.60 billion, reflecting annual growth of 14% to 16%. The consensus is for $3.46 billion.Gross booking value is seen rising in the low-double-digit range amid gains in nights and seats booked, Airbnb said.The company expects the full-year revenue growth to accelerate to low to mid-teens, compared with the prior outlook that called for growth of at least low double digits. The consensus indicates $13.71 billion in revenue this year.Shares rose 1.8% in after-hours trade. The stock is up about 3.5% since the start of the year through Thursday's close.

$ABNB