Stock Market Today, May 8: Nasdaq Gains 1.7% on AI Demand and Strong Jobs Data

The S&P 500 (^GSPC +0.84%) rose 0.76% to 7,392.56, the Nasdaq Composite (^IXIC +1.71%) jumped 1.71% to a record 26,247.08, and the Dow Jones Industrial Average (^DJI +0.02%) inched up 0.02% to 49,609.16 as strong jobs data and AI leaders drove gains.

Market movers

Micron Technology extended its surge, rising 16% as memory stocks continued to gain. Intel rallied on reports of a preliminary chip-manufacturing deal with Apple.

On the downside, Cloudflare sank 24% after unveiling sizable layoffs tied to an AI-focused restructuring. HubSpot plunged 19% on soft second-quarter guidance.

What this means for investors

Strong labor data and broad tech strength propelled the S&P 500 and Nasdaq to new highs. It is the sixth week in a row that the S&P 500 has finished in the green. Tensions in the Middle East have not abated, but signs of economic resilience offer investors reassurance. In particular, better-than-expected jobs data suggests the labor market may be stabilizing. Nonfarm payroll jobs grew by 115,000 in April, and unemployment held at 4.3%.

Risk appetite is high, as shown by Micron’s double-digit gains today — it is up almost 215% in the past six months. Rocket Lab soared almost 35% today and is now up over 350% in the past year. However, some commentators have flagged concerns about over-concentration and questioned the sustainability of growth that’s largely driven by megacaps.In that light, investors have high expectations for **Nvidia’s **May 20 earnings. Its ability to meet them will impact wider markets as well as data-center sentiment.