The stock market rally powered higher again last week, buoyed by lower oil prices and AI optimism fueled by deals and generally positive earnings. The Nasdaq composite led, hitting new highs along with the S&P 500 and small-cap Russell 2000.
Upbeat tech earnings lifted the Nasdaq to a 4.5% climb, while the S&P 500 gained 2.3%. Both posted six straight winning weeks, marking the longest win streak since 2024 for the broad market benchmark and the tech-heavy index. The Dow Industrials lagged with a weekly gain of 0.2%.
Sentiment was bolstered last Friday by the Bureau of Labor Statistics that reported nonfarm payrolls rose by 115,000 last month, more than the 55,000 that economists polled by Dow Jones were expecting. Amid the fifth-straight decline in labor-force participation, the unemployment rate remained unchanged at 4.3%, in line with expectations.
Automatic Data Processing’s (ADP‘s) Employment Change Report suggests continued momentum following a solid March.
Last week Nvidia (NVDA) agreed to invest up to $3.2 billion in glass maker Corning (GLW) and $2.1 billion in data center operator IREN (IREN).
In March, Nvidia invested $2 billion in Marvell Technology as part of a strategic partnership to work on silicon photonics technology.
Memory chip stocks Micron (MU) posted a weekly gain of nearly 38%, while Sandisk (SNDK) advanced more than 31%.
Oil prices fell last week as the market hoped for a U.S.-Iran deal, though Brent has since stabilized around $100 per barrel amid a series of violent confrontations in the Persian Gulf.
New home sales in March beat expectations amid homebuilder incentives and lower sales prices.
The U.S. trade deficit widened less than expected in March, due to improving import conditions,as factory orders increased month-over-month (M/M).
The Institute for Supply Management’s (ISM’s) April services Purchasing Managers Index (PMI) declined slightly, but remains in expansionary territory.
Looking ahead to this week, investors can expect updates on inflation, including the Consumer Price Index (CPI) and the Producer Price Index (PPI), as well as retail sales, small business optimism, industrial production, and existing home sales.
President Donald Trump will travel to Beijing to meet with China’s Xi Jinping on May 14-15. Tariffs, rare earths and chip export bans may be in focus, with Trump expected to bring along major CEOs in anticipation of high-profile deals.
If you click the Looking Ahead link below, you will find a report from Wells Fargo Investment Institute. Below are excerpts from that research.
Week in review: May 4-8
Economic news
- Last week’s job data suggests stabilization in the labor market, despite persistent inflation concerns.
- The March Job Openings and Labor Turnover Survey (JOLTS) showed that while job openings decreased slightly, there was a pick up in hiring.
- Headline non-farm payrolls increased by 115,000 in April, the first back-to-back gain since last May.
- The unemployment rate in April held steady at 4.3%, supported by another decline in the labor force.
- The ADP Employment Change Report for April showed private payrolls rising by 109,000, with the majority in health services and education.
- The ISM services PMI softened from 54.0 in the prior month to 53.6 in April, with the service economy remaining in expansionary territory, even as order growth slowed and import prices increased.
- Price paid for services and materials remained steady at 70.7, the highest since 2022.
- New orders shipped to a three month low of 53.5.
- The U.S. trade deficit widened in March to $60.3B, as imports rose 2.3% M/M and exports increased 2.0% M/M.
- Factory orders for March rose by 1.5% M/M, exceeding expectations, driven by a sharp rise in computers and electronic products, which saw their largest increase since March 2001.
- Recent home sales data indicated improving affordability in the housing market.
- New single-family home sales rose by 7.4% M/M in March to an annualized 682,000, the fastest pace this year. Meanwhile, the median sales price for a new home decreased 6.2% year-over-year.
- Construction spending for March rose by 0.6% M/M, marking the first increase since December 2025. Although the construction sector has seen weakness, March data may limit negative contributions to first- quarter gross domestic product (GDP).
Looking Ahead to this week: May 11-15
U.S.
- The focus of the week will be on inflation data, with CPI on Tuesday, PPI on Wednesday, and both Import and Export Price Indexes on Thursday. Other potential market-moving releases include April’s retail sales and industrial production data. Also on tap: April‘s existing home sales, small business optimism, and federal budget balance.
- Rounding out the docket are March business inventories, and the Federal Reserve Bank of New York’s May Empire State Manufacturing Survey and first-quarter Household Debt and Credit report.
- In the central bank space, Jerome Powell‘s official term as Federal Reserve Chairman ends and the Senate will hold a vote to confirm Kevin Warsh as the new Chairman.
Asia
- In China, the highlight will be April’s CPI, PPI, and money supply, while the U.S. President Donald Trump is scheduled to meet in Beijing with Chinese president Xi Jinping.
- From Japan for March’s leading index and April’s money supply, PPI, and preliminary machine tool orders.
- Elsewhere in the region, South Korea’s March money supply and April unemployment rate and Export Price Index, along with Australia’s April business confidence and first-quarter Wage Price Index.
Europe
- The focus will be on the Eurozone’s first-quarter preliminary employment and second reading of GDP along with March industrial production, and May ZEW expectations for economic growth.
- From the U.K., Watch for the preliminary reading of first quarter GDP and March’s industrial production, Index of Services, construction output, and visible trade balance.
- Also be on the lookout for French and German finalized April CPI, along with France’s first-quarter unemployment rate, and Germany’s May VEW index of current conditions.
