The S&P 500 and Nasdaq hit record highs on Friday, boosted by gains in Nvidia, Sandisk and other AI-related stocks, while a stronger-than-expected jobs report pointed to the resilience of the labor market.

Nvidia climbed, while memory and storage vendors Micron Technology and SanDisk rose, driven by strong demand from the rapid construction of AI data centers. Still, despite the tech rally, most sectors in the S&P 500 were down for the day.

The Philadelphia SE ⁠Semiconductor index jumped, bringing its gains so far in the second quarter to nearly 54%.

The S&P 500 and Nasdaq hit record highs this week as investors focused on strong financial reports from U.S. companies, shrugging off concerns that higher oil prices linked to the Middle East conflict are fueling inflation.

According to LSEG I/B/E/S, first-quarter S&P 500 earnings are on track to climb nearly 29% year-over-year, with much of the growth driven by Wall Street’s AI-related heavyweights.

“This is an economy that looks hard to break,” said Rob Williams, chief investment strategist at Sage Advisory Services in Austin, Texas. “It’s a productivity story, spending, consumer wealth impact and earnings.”

Data showed that US employment rose more than expected in April and the unemployment rate held steady at 4.3%, bolstering expectations that the Federal Reserve will keep interest rates on hold for some time.

Traders expect the central bank to keep interest rates steady in the range of 3.50% to 3.75% until the end of the year.

According to preliminary data, the S&P 500 rose 61.40 points, or 0.84%, to close at 7,398.51, while the Nasdaq Composite added 437.64 points, or 1.70%, to 26,243.84. The Dow Jones Industrial Average rose 10.10 points, or 0.02%, to 49,607.81.

The S&P 500 and Nasdaq notched their sixth straight weekly gains, the longest winning streak since October 2024. The Dow has registered two consecutive weekly advances.

Earnings optimism helped investors watch fresh attacks between US and Iranian forces in the Gulf.

Brent crude rose above $100 a barrel due to the rapid resolution of the Middle East conflict and the gradual reopening of the Strait of Hormuz, a key transit route for oil and liquefied natural gas.

The US said it expected a response from Tehran to its latest proposal later on Friday.

Of the 440 S&P 500 companies that have reported first-quarter results so far, 83% topped analysts’ earnings estimates, according to LSEG. That compares to a long-term average of about 67%.

However, there have been some earnings disappointments.

Cloudflare sank after the cloud services company said it would cut about 20% of its workforce and forecast second-quarter revenue slightly below Wall Street expectations.

The trade desk fell after the ad-tech firm forecast second-quarter revenue that beat Wall Street estimates.

CoreWave fell after the cloud infrastructure technology company raised the low end of its annual capital spending forecast, citing an increase in component costs.

Online travel platform Expedia declined after it flagged that the conflict in the Middle East was hurting demand.