US markets closed higher on Friday after stronger-than-expected US jobs data reinforced optimism around the resilience of the economy despite ongoing geopolitical tensions in Middle East. A closely watched report released by the Labor Department showed the US economy added 115K jobs in April 2026, following an upwardly revised 185K increase in March, and way above market forecasts of 62K. Job gains occurred in health care (37K), transportation and warehousing (30K), and retail trade (22K). Some support also came with the Commerce Department released a report showed US wholesale inventories advanced by 1.3% month-over-month to $906.371 billion in March 2026, following a 0.9% increase in February and compared with a preliminary estimate of 1.4%. However, preliminary data released by the University of Michigan showed the University of Michigan’s Consumer Sentiment Index dropped to a record low of 48.2 in early May 2026, missing market expectations of 49.5 and falling below April’s 49.8. The current conditions component declined about 9% to 47.8, driven by growing concerns over high prices affecting personal finances and buying conditions for major purchases.
Nasdaq rose 440.88 points or 1.71 percent to 26,247.07, S&P 500 added 61.82 points or 0.84 percent to 7,398.93 and Dow Jones Industrial Average increased 12.19 points or 0.02 percent to 49,609.16.
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