US Stocks Hit Record Highs on Strong Jobs Data and AI Optimism

The U.S. stock market surged to an all-time high, buoyed by positive employment news and rising stock prices of artificial intelligence (AI) and semiconductor companies. This surge is attributed to recent employment figures that exceeded expectations and the positive market impact of growing excitement around AI technologies. On the U.S. stock market on the 8th (local time), the S&P 500 index rose 0.84% to 7,398.93, marking a new record high, while the Nasdaq Composite index climbed 1.71% to 26,247.08, also setting a new peak. Key drivers for the rally included a larger-than-expected increase in non-farm payrolls for April, with the unemployment rate holding steady at 4.3%, strong performance in technology and AI-related stocks, and robust earnings reports from Monster Beverage and Akamai Technologies.

In contrast, the pan-European STOXX 600 index fell 0.69% to 612.14, with the UK's FTSE 100 index (-0.43%), Germany's DAX index (-1.32%), and France's CAC 40 index (-1.09%) all experiencing declines. This downturn was attributed to a combination of escalating tensions in the Middle East, the burden of energy prices, and the potential for the United States to impose tariffs on the European Union (EU).

Major government bond yields showed a downward trend. U.S. 10-year Treasury yields stood at 4.362% on the London Stock Exchange, down 3.2 basis points. Despite the strong employment figures, factors such as deteriorating consumer sentiment, Middle East uncertainties, and future economic pressures contributed to this decline. German 10-year yields fell 0.8 basis points to 2.997%, UK 10-year yields dropped 0.5 basis points to 4.913%, and Japanese 10-year yields decreased by 0.4 basis points to 2.475%.

The dollar weakened. Despite robust employment data, a combination of easing Middle East tensions and evolving expectations regarding the U.S. Federal Reserve's future interest rate path contributed to the dollar's decline. On the London Stock Exchange, the euro rose 0.48% against the dollar to $1.1782, and the pound gained 0.58% to $1.3630. The Japanese yen strengthened 0.15% against the dollar, trading at 0.0064.

International oil prices remained around the $100 per barrel mark, acting as a potential catalyst for inflation concerns. Gold prices rose 0.09% to $4,724.80 per ounce, and copper prices increased by 1.62%. The rise in precious metals and industrial metals prices was attributed to a combination of increased demand for safe-haven assets amid Middle East tensions, central bank buying, and technical rebound sentiment. Copper prices, in particular, saw a rally reflecting expectations of a global manufacturing recovery, China's demand outlook, and supply chain uncertainties.