Dow Hits Record High as Investors Await Jobs Data Amid Middle East Uncertainty

index Update

The Dow Jones jumped 875 points to a record close on Thursday, supported by strong gains in healthcare, financials, communication services, and real estate stocks, while the S&P 500 rose 0.4%. However, the Nasdaq slipped 0.1% as investors rotated out of technology shares, with Broadcom tumbling 12.6% after its AI-chip Revenue outlook disappointed, while AMD and Micron also declined. Market sentiment was also supported by easing oil prices after reports of a conditional Israel-Lebanon ceasefire raised hopes for broader regional de-escalation involving Iran.

Market Movers

Among the top-performing stocks of the session Solidion Technology, Inc. surged 350.60%, while Indaptus Therapeutics, Inc rallied 114.93%. On the losing side, CDT Environmental Technology Investment Holdings Limited. fell 30.01%, while Decent Holding Inc. declined 29.79%, making them the weakest performers during the trading day.

Commodities Update

WTI and Brent Crude remained elevated near $93 and below $95 per barrel, respectively, despite sharp losses in the previous session, as hopes for a US-Iran diplomatic resolution and a possible reopening of the Strait of Hormuz eased some Supply fears. However, both benchmarks stayed higher for the week amid limited progress in negotiations, continued Israel-Lebanon hostilities, and Hezbollah’s rejection of a US-mediated ceasefire proposal. Gold and silver declined on Friday, with gold falling below $4,450 an ounce and silver slipping below $73 an ounce, putting both metals on track for weekly losses of more than 2% and nearly 4%, respectively. The decline was driven by persistent Middle East uncertainty, as limited progress in US-Iran talks and Hezbollah’s rejection of a US-mediated Israel-Lebanon ceasefire proposal kept geopolitical risks elevated. Continued disruptions to energy flows through the Strait of Hormuz also kept oil prices high, reinforcing Inflation concerns and expectations that interest rates could remain elevated.

Macro Updates

US May Jobs Report Expected to Show Softer Hiring but Stable Labour Market

The US economy is expected to add 85,000 jobs in May 2026, slowing from the previous two months of 100,000-plus gains, while the Unemployment rate is forecast to remain steady at 4.3%. Wage growth is projected to rise slightly by 0.3% month-over-month, though annual Earnings growth may ease to 3.4% from 3.6%. Overall, the report is expected to signal a still-resilient labour market, supported by a low-hire, low-fire environment, though analysts note that AI adoption and other structural pressures may be starting to reshape employment trends.

Dollar Holds Firm on Safe-Haven Demand Ahead of US Jobs Data

The dollar index held steady near 99.4 on Friday and remained set for a weekly gain, supported by safe-haven demand amid continued Middle East uncertainty. While President Trump suggested peace talks were nearing a final stage, Iran reported no meaningful progress and Hezbollah rejected a US-mediated ceasefire proposal, keeping geopolitical risks elevated. Investors also awaited the May employment report for clues on labour market strength and the Fed’s policy path, as resilient recent jobs data and energy-driven inflation pressures kept expectations alive for a possible rate hike before year-end.

Bonds Commentary

The US 10-year Treasury Yield held steady near 4.48% on Friday as investors awaited the May jobs report for signals on labour market strength and the Fed’s policy outlook. Recent employment data suggested continued economic resilience, supporting expectations that the Fed could raise rates later this year amid inflation risks from higher energy prices. Meanwhile, Middle East tensions remained elevated, with limited progress in US-Iran talks and Hezbollah rejecting a US-mediated Israel-Lebanon ceasefire proposal.

Futures Update

US stock futures declined on Friday as investors awaited the May employment report for clues on labour market strength and the Fed’s policy outlook, while uncertainty over stalled US-Iran negotiations kept sentiment cautious. Corporate concerns also weighed on futures after Lululemon shares fell over 11% in extended trading following a cut to its full-year earnings and revenue forecasts. In the previous session, the Dow hit a fresh record high, supported by healthcare and financial stocks, while the S&P 500 rose modestly and the Nasdaq slipped as Broadcom’s weak outlook pressured AI-related shares.

The S&P 500 remains firmly bullish despite a modest 0.41% pullback, with the index holding comfortably above its 21-day and 50-day EMAs, reinforcing the strength of the broader uptrend. Momentum remains positive following the sharp recovery from April lows, while the RSI near 69 indicates strong buying pressure without a confirmed overbought signal. With Volume remaining elevated and key support around 7,500–7,450, the outlook continues to favor buying dips, with potential upside toward the 7,600–7,650 area in the near term.