GLOBAL MARKETS: Stocks mixed, dollar down as investors digest US job growth, chipmaker strength and elevated oil

Global equities were mixed, while the dollar weakened on Friday, as new U.S. data showed domestic job growth, although consumer sentiment fell and oil prices remained elevated on continued fighting near the Strait of Hormuz.

European stocks dipped, but the S&P 500 .SPX added 0.8%, and the Nasdaq Composite .IXICrose1.7% to fresh records. The Dow Jones Industrial Average .DJI was little changed.

Chipmakers recovered, including Qualcomm QCOM.O, up about 8%, while Nvidia NVDA.O was 1.75% higher. Intel <INTC.O> shares surged around 14% on a Wall Street Journal report that it had reached a preliminary agreement with Apple AAPL.O to manufacture some of the chips that power the iPhone maker's devices.

Brent crude futures jumped as much as 3% on Friday, a day after the U.S. and Iran traded air strikes, but pared gains as traders hoped for a longer pause in the fighting. Brent crude futures <LCOc1> settled at $101.29 a barrel, up 1.23%

U.S. employment increased more than expected in April while the unemployment rate held steady at 4.3%, pointing to labor market resilience.

"More solid jobs data leaves the Fed where it’s been for a while - watching and waiting, focused on the inflation side of its mandate," said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. "Rate cuts still aren’t on the near-term horizon, but the absence of inflationary threats in today’s report should quiet some of the chatter about a potential hike."

At the same time, U.S. consumer sentiment slumped to a record low in early May as higher gasoline prices weighed on household finances and purchasing power, a survey showed on Friday.

MIDDLE EAST CLASHES

The U.S. and Iran exchanged fire in the Gulf and the UAE came under renewed attack, testing a month-long ceasefire. Both sides played down the situation, leaving investors uncertain.

"The market seems to be taking every chance to price in a quick end to the war," said Jan von Gerich, chief analyst at Nordea.

"But it seems unlikely there's going to be an agreement. I still think there are going to be disruptions in the Strait (of Hormuz) for a longer time and it won't be resolved any time soon."

European stocks were lower, with the pan-continental STOXX 600 .STOXX down 0.7%.

Asian equities slipped from recent highs after a robust week, supported by strong revenue and spending plans from U.S. AI hyperscalers, which have boosted regional chipmakers.

MSCI's broadest index of Asian shares outside Japan .MIAPJ0000PUS fell 0.8%, although South Korea's KOSPI .KS11 inched up 0.1%, bringing its weekly gain to more than 13.5% - its largest since 2008 - helped by rallies in Samsung 005930.KS and SK Hynix 000660.KS.

Taiwan's benchmark was up 7% this week and Japan's Nikkei .N225 rose 5.4%.

DOLLAR INCHES LOWER

The dollar edged lower for a second straight weekly decline, while the yen remained in focus after Japan intervened in currency markets in early May to stem its slide, a source familiar with the matter told Reuters. FRX/

The dollar fell0.1% to 156.73 yen JPY=, a second weekly fall against Japan's currency. Gains beyond 155 have proved difficult to sustain following suspected intervention totalling nearly $70 billion since last Thursday.

The euro EUR=rose about 0.5%to $1.177, while China's yuan CNY=CFXS, Asia's best-performing currency since the war broke out, hovered near 6.8 per dollar, close to its strongest since 2023.

The pound and UK government bonds climbed on Friday after British Prime Minister Keir Starmer said he would not resign despite bruising losses for his ruling Labour Party in local elections.

TARIFFS

A U.S. trade court ruled on Thursday that President Donald Trump's latest 10% temporary global duties are unjustified under a 1970s trade law. But the administration appealed the ruling on Friday, and analysts expect little overall impact on U.S. levies.

Treasury yields were slightly lower on Friday, with the benchmark 10-year yield US10YT=RR at 4.364%, down 3 basis points.

Bitcoin BTC= continued its resurgence, last hitting $80,101, up nearly 14% over three months.

-Lawrence Delevingne and Samuel Indyk/Reuters