S&P 500 rises to record close Friday and posts strongest week since April: Live updates

The S&P 500 closed at a record high on Friday, marking its strongest weekly performance since April, as traders interpreted a surprise drop in July job losses as evidence that the Federal Reserve may not need to raise interest rates soon. The index soared 0.6%, while the Nasdaq Composite outperformed with a gain of 1.3%. Meanwhile, the Dow Jones Industrial Average added 151 points, or 0.3%.

The S&P 500, which had previously surpassed the 7,700 mark, has risen more than 3% for the week, and the Nasdaq saw an even more impressive gain of 5%, largely driven by chip stocks. The iShares Semiconductor ETF (SOXX) climbed by about 7% during the same period.

July's nonfarm payrolls report showed a startling 23,000 job loss, significantly below the 83,000 jobs economists had anticipated. The unemployment rate fell to 4.1%, while the labor force participation rate dropped to its lowest level in over five years. Fed futures traders now believe the central bank will maintain its benchmark lending rate between 3.50% and 3.75% at the upcoming September meeting, per the CME FedWatch tool. This follows a sharp drop in expectations from 55% just a day prior.

Software stocks led market gains on Friday, as positive earnings reports dispelled concerns that artificial intelligence would disrupt the sector. Cloudflare surged 4% after delivering a solid full-year and current-quarter outlook, while Atlassian jumped 36% following its fourth-quarter earnings that surpassed expectations and provided upbeat guidance. Airbnb also experienced a 15% surge after reporting strong top and bottom-line results.

Oil prices edged higher as investors awaited a potential deal between the U.S. and Iran to reopen the Strait of Hormuz. Treasury Secretary Scott Bessent had previously stated that a resolution could be reached soon. West Texas Intermediate futures for September delivery rose by 1.15% to $78.18 per barrel, while Brent crude increased by 1.29% to $83.55.

Space Exploration Technologies (SpaceX) showcased a strong performance, rising 12% on Friday and on track to end its first week in the green in several weeks. The company's shares were up nearly 19% for the week, fueled by growing investor confidence in SpaceX's fundamental strength. The rally was partly driven by Argus raising its rating on SpaceX to "buy" from "hold" and reaffirming its $160 target price, which implies a 39% upside potential from the previous day's close.

Iranian and U.S. negotiators are currently awaiting final approval from the Supreme National Security Council regarding a deal to reopen the Strait of Hormuz. Negotiators are optimistic that a resolution will soon be reached, according to a diplomat from a mediating country. Meanwhile, chipmaker Nvidia led the stock market with a more than 10% increase on the week, and an additional 1% gain in intraday trading.

The company's partnership with SpaceX CEO Elon Musk, who declared Nvidia as the exclusive partner for SpaceX's AI buildout, played a significant role in the rally.