Nonfarm Payrolls Ignite a Risk Rally as Chip Stocks Power a Sixth Straight Weekly Gain

Market Overview

Stronger-than-expected U.S. nonfarm payrolls data reignited bullish sentiment across global markets, with semiconductor stocks leading the charge and helping both the S&P 500 and Nasdaq post a sixth consecutive week of gains, marking their longest winning streak in a year and a half.

Although early-session headlines surrounding restrained military exchanges between the U.S. and Iran briefly unsettled sentiment, risk appetite remained firmly intact as capital continued to rotate aggressively into semiconductor names and momentum-driven thematic plays.

However, enthusiasm cooled slightly during Mondays early Asia-Pacific session. U.S. equity futures and precious metals edged lower, while crude oil rebounded sharply amid renewed geopolitical concerns.

Diverging Performance Across Asset ClassesSemiconductor and Technology Stocks

The Philadelphia Semiconductor Index surged 5.5% in a single session, with both chip stocks and major U.S. benchmarks climbing to fresh record highs.

Intel soared 14% following reports that the company had secured a preliminary chip manufacturing agreement tied to Apple hardware components. Micron Technology rallied more than 15%, while AMD extended its earnings-week gains to an impressive 26%.

Meanwhile, Rocket Lab skyrocketed 34% after landing a major “Golden Dome” defense-related contract.

In contrast, CoreWeave plunged more than 10% after issuing disappointing guidance, underscoring how unforgiving investors remain toward earnings misses and weaker outlooks.

Energy and Commodities

Crude oil snapped a three-session losing streak as the U.S.-Iran conflict appeared relatively contained, though prices still finished the week down more than 6%. During Mondays early trading, geopolitical tensions pushed oil prices nearly 3% higher once again.

In the broader commodities space, gold and silver both logged a third consecutive daily gain, while copper futures in New York surged nearly 2% to close at a fresh all-time high. Nevertheless, both gold and silver retreated modestly during the early Asian session on Monday.

Fixed Income and Foreign Exchange

Following the release of the nonfarm payrolls report, the U.S. 2-year Treasury yield initially spiked higher before quickly reversing lower.

The U.S. Dollar Index briefly touched an intraday high on geopolitical headlines before turning negative. Meanwhile, the offshore Chinese yuan remained exceptionally strong, breaking below the 6.80 level against the dollar for a second consecutive session and reaching its strongest level in four years.

Cryptocurrency and Asian Market Performance

Bitcoin reclaimed the $80,000 level intraday, rebounding more than 1% from session lows as dip-buying demand remained resilient.

Asian equities, however, underperformed. China‘s ChiNext Index and Hong Kong’s Hang Seng Index both closed lower, while semiconductor shares broadly pulled back. Capital rotated into robotics-related plays during the session, whereas most Chinese internet and technology names remained under pressure. Kuaishou bucked the trend, rallying more than 9%.

Key Themes to WatchU.S. April Nonfarm Payrolls Crush Expectations with 115,000 Jobs Added

The U.S. economy added 115,000 jobs in April, far exceeding market expectations of 65,000 and marking the strongest stretch of payroll growth in nearly a year.

The unemployment rate held steady at 4.3%, while annual wage growth slowed to 3.6%, easing some inflation concerns.

Although the broader unemployment measure climbed to 8.2% and labor force participation weakened, the overall resilience of the labor market gives the Federal Reserve more room to remain patient as it assesses inflation risks tied to the Iran conflict. As a result, expectations for near-term rate cuts have diminished further.

U.S. Consumer Sentiment Falls to Another Record Low

The preliminary University of Michigan Consumer Sentiment Index for May fell to 48.2 from Aprils 49.8, missing expectations and marking the second consecutive month at a historic low.

Consumers assessment of personal finances deteriorated to its weakest level since 2009. Meanwhile, inflation expectations remained elevated, with respondents expecting prices to rise 4.5% over the next year and projecting long-term inflation of 3.4% over the next five to ten years.

According to the survey director, roughly one-third of respondents cited gasoline prices as a major concern, while another one-third pointed to tariffs.

Key Event to Watch (GMT+8)

22:00 ET | U.S. Existing Home Sales (Annualized), April