Stocks Climb on Solid Tech Earnings and US Labor Market Strength

The S&P 500 Index ($SPX) (SPY) today is up +0.62%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.22%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +1.32%.  June E-mini S&P futures (ESM26) are up +0.61%, and June E-mini Nasdaq futures (NQM26) are up +1.35%.

Stock indexes are moving higher today, with the Nasdaq 100 posting a new record high.  Chipmakers and AI-infrastructure stocks are leading the overall market higher today, offsetting Iran war concerns.  Stronger-than-expected corporate earnings are also pushing stocks higher.

Stock indexes also found support today on signs of resiliency in the US labor market after April nonfarm payrolls rose more than expected and March nonfarm payrolls were revised upward.

US Apr nonfarm payrolls rose by +115,000, stronger than expectations of +65,000, and Mar nonfarm payrolls were revised upward to +185,000 from the previously reported +178,000.  The Apr unemployment rate was unchanged at 4.3%, right on expectations.

US Apr average hourly earnings rose +0.2% m/m and +3.6% y/y, weaker than expectations of +0.3% m/m and +3.8% y/y.

In the latest developments in the Middle East, Iran's semi-official Tasnim news agency said Iran seized an oil tanker today in the Strait of Hormuz for "attempting to disrupt oil exports and the interests of the Iranian nation."  Also, US forces targeted missile and drone launch sites and other military assets in Iran that were responsible for attacking three US Navy destroyers transiting the Strait of Hormuz.  The US is awaiting a response from Iran on a proposed deal to reopen the strait, and President Trump has threatened intense strikes if Iran refuses the deal. 

WTI crude oil prices (CLM26) are up slightly today amid a report that Iran seized an oil tanker in the Strait of Hormuz for “violations.”  Crude also has support from a report that said the US is looking to restart military operations as soon as next week to guide commercial ships through the Strait of Hormuz with naval and air support.  The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait.  Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.

The markets are discounting a 6% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.

Earnings reports thus far in this reporting season have been supportive of stocks.  As of today, 84% of the 425 S&P 500 companies that reported Q1 earnings have beaten estimates.  Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence.  Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.

Overseas stock markets are lower today.  The Euro Stoxx 50 is down -0.95%.  China's Shanghai Composite fell from a 2-month high and closed unchanged.  Japan's Nikkei Stock Average closed down by -0.19%.

Interest Rates

June 10-year T-notes (ZNM6) today are up +7 ticks.  The 10-year T-note yield is down -3.5 bp to 4.351%.  T-notes are moving higher today on an increase in safe-haven demand after Iran seized an oil tanker today in the Strait of Hormuz and US forces attacked missile and drone launch sites and other military assets in Iran that were responsible for attacking three US Navy destroyers transiting the Strait of Hormuz. 

Today’s US payroll report was mixed for T-notes. Weaker-than-expected April hourly earnings suggested slack wage pressures and were supportive of T-notes. However, gains in T-notes are limited after April nonfarm payrolls rose more than expected. 

European government bond yields are mixed today.  The 10-year German Bund yield is down -0.1 bp to 3.002%. The 10-year UK gilt yield fell to a 2-week low of 4.881% and is down -6.3 bp to 4.885%.

German Mar industrial production unexpectedly fell by -0.7% m/m, weaker than expectations of a +0.4% m/m increase.

German trade news was better than expected, with Mar exports rising +0.5% m/m versus expectations of -1.5% m/m.  Also, Mar imports rose +5.1% m/m, stronger than expectations of +0.5% m/m and the biggest increase in 2.75 years.

ECB Vice President Luis de Guindos said the most important determinant for interest rates at the ECB's June meeting will be "whether Hormuz is reopened or not."

ECB Executive Board member Isabel Schnabel said, "If the energy-price shock broadens, monetary policy will need to tighten to contain the risk of second-round effects threatening medium-term price stability."

Swaps are discounting an 78% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.

US Stock Movers

Chipmakers and AI-infrastructure stocks are climbing today to lift the overall market.  Micron Technology (MU) is up more than +7%, and Sandisk (SNDK) is up more than +6%. Also, Advanced Micro Devices (AMD), KLA Corp (KLAC), Intel (INTC), and Qualcomm (QCOM) are up more than +5%, and Applied Materials (AMAT) is up more than +4%. In addition, Marvell Technology (MRVL) is up more than +3%, and ARM Holdings Plc (ARM), ASML Holding NV (ASML), Western Digital (WDC), Seagate Technology Holdings Plc (STX), Lam Research (LRCX), Broadcom (AVGO), and Analog Devices (ADI) are up more than +2%.

Software stocks are on the defensive today, limiting gains in the broader market.  Atlassian (TEAM) is down more than -6%, and Salesforce (CRM) is down more than -4% to lead losers in the Dow Jones industrials.  Also, Workday (WDAY), ServiceNow (NOW), and Intuit (INTU) are down more than -4%, and Adobe (ADBE) is down more than -3%. In addition, Autodesk (ADSK) is down more than -2%, and Microsoft (MSFT) and Oracle (ORCL) are down more than -1%.  

Cybersecurity stocks are under pressure today, led by a -21% plunge in Cloudflare (NET) after it forecasted Q2 revenue of $664 million to $665 million, below the consensus of $666.1 million.

Also, Zscaler (ZS) is down more than -4%, and Okta (OKTA) is down more than -2%.  In addition, CrowdStrike Holdings (CRWD) and Palo Alto Networks (PANW) are down more than -1%, and Fortinet (FTNT) is down -0.85%. 

Fluence Energy (FLNC) is up more than +39% after Roth Capital Partners upgraded the stock to buy from neutral with a price target of $26.

Akamai Technologies (AKAM) is up more than +23% to lead gainers in the S&P 500 after raising its full-year revenue forecast to $4.45 billion to $4.55 billion, the midpoint above the consensus of $4.47 billion, and announcing that an AI model provider had committed $1.8 billion over seven years for its Cloud Infrastructure Services. 

Monster Beverage (MNST) is up more than +12% to lead gainers in the Nasdaq 100 after reporting Q1 net sales of $2.35 billion, better than the consensus of $2.15 billion. 

Iren Ltd (IREN) is up more than +12% after announcing that it signed a five-year $3.4 billion AI Cloud contract with Nvidia. 

Block (XYZ) is up more than +9% after reporting a Q1 adjusted EPS of 85 cents, stronger than the consensus of 67 cents, and raising its full-year profit forecast to $12.33 billion from a previous estimate of $12.20 billion, above the consensus of $12.15 billion. 

Wendy’s (WEN) is up more than +4% after reporting Q1 revenue of $540.6 million, stronger than the consensus of $517.7. 

HubSpot (HUBS) is down more than -22% after forecasting Q2 revenue of $897 million to $898 million, weaker than the consensus of $899.4 million.

CoreWeave (CRWV) is down more than -13% after reporting a Q1 loss per share of -$1.40, wider than the consensus of -$1.20 pe share.

Trade Desk (TTD) is down more than -9% after reporting Q1 adjusted EPS of 28 cents, weaker than the consensus of 32 cents.

Expedia Group (EXPE) is down more than -8% after forecasting Q2 gross bookings of $32.5 billion to $33.1 billion, the midpoint below the consensus of $33.0 billion.

Earnings Reports(5/8/2026)

Anglogold Ashanti Plc (AU), Brookfield Asset Management Ltd (BAM), EchoStar Corp (SATS), Fidelity National Information (FIS), Janus Henderson Group PLC (JHG), Madison Square Garden Sports Corp (MSGS), Oshkosh Corp (OSK), PPL Corp (PPL), QXO Inc (QXO), Starwood Property Trust Inc (STWD), Trump Media & Technology Group (DJT), Ubiquiti Inc (UI), Wendy's Co/The (WEN).