US equities hit record levels as robust employment data outweighs Strait of Hormuz tensions

US stock markets reached record levels on Friday, driven by a jobs report that showed 115,000 new positions created, a figure nearly double what economists had forecast. The S&P 500 climbed 0.8 per cent to an all-time high, the Dow Jones Industrial Average edged up 12 points, and the Nasdaq composite rallied 1.7 per cent. This positive momentum occurred despite escalating tensions in the Strait of Hormuz, where US forces disabled two Iranian oil tankers, causing Brent crude oil prices to rise 1.2 per cent to $101.29 per barrel.

While global markets in Europe and Asia generally fell, the robust US employment figures and strong corporate profits overshadowed the geopolitical risks and higher fuel costs. The S&P 500 closed out a sixth straight winning week, its longest such streak since 2024, buoyed by the latest sign that the nation's job market is doing better than expected. The Dow Jones Industrial Average added 12.19 points to 49,609.16, while the Nasdaq composite climbed 440.88 points to 26,247.08.

One big factor helping to support the US stock market despite the war's uncertainties is the strong profits that companies have been reporting for the start of 2026. Monster Beverage jumped 13.6 per cent after the energy drink maker joined the parade of companies topping analysts' expectations for profit and revenue for the latest quarter. It benefited from strong growth outside the United States, and total net sales from there made up about 45 per cent of its total, the highest percentage ever for the company.

Akamai Technologies leaped even more, up 26.6 per cent, after its results squeaked past expectations. The company announced a $1.8 billion deal to provide cloud infrastructure services to an unnamed client over seven years. The cybersecurity and cloud computing company is benefiting from the surge in investment in artificial-intelligence technology. Conversely, Voracious demand for AI helped CoreWeave report revenue for the latest quarter that was more than double what it was a year earlier, but its net loss was worse than analysts expected. The stock of the company, which offers AI computing power to customers over the cloud, fell 11.4 per cent.

In stock markets abroad, indexes fell across much of Europe and Asia. Germany's DAX lost 1.3 per cent, and Hong Kong's Hang Seng dropped 0.9 per cent for two of the bigger losses. South Korea's Kospi was an exception, and it inched up 0.1 per cent to another all-time high. In the bond market, Treasury yields eased and remained lower after a preliminary report suggested sentiment among US consumers is stuck near its lowest level since 2022.

Consumers told the survey from the University of Michigan they are concerned about both high gasoline prices and tariffs, though their expectations for inflation in the coming year softened by a bit. The yield on the 10-year Treasury fell to 4.36 per cent from 4.41 per cent late Thursday and from 4.45 per cent early this week. Lower yields can bring down rates for mortgages and other kinds of loans going to US households and businesses, which in turn can give the economy a boost. Lower yields also tend to push upward on prices for stocks and other kinds of investments.