The S&P 500 and Nasdaq indices both pushed to fresh records on Friday, on solid US jobs numbers. The Dow ended flat. European bourses retreated.

Oil prices rose as fresh US-Iran clashes in the Strait of Hormuz jolted hopes for a deal to end the Middle East war and reopen the crucial waterway.

"No negative news sticks to this bull market, and it just keeps working its way higher," said CFRA Research's Sam Stovall.

A US fighter jet disabled two Iranian-flagged tankers to enforce a port blockade on Friday, prompting retaliatory attacks from Iran. The latest incident came after another flare-up overnight in the strait.

Meanwhile, US data showed the economy added 115,000 jobs in April, more than double the forecast.

But US consumer confidence was at an all-time low according to a University of Michigan survey, with Americans weighed down by concerns about high prices and the fallout of the US-Israel war on Iran.

Stovall cited both the consumer confidence figure and the brittle conditions in the Middle East as headwinds the market has shrugged, but added, "I would not be surprised if we do see some digestion of recent gains take place in the near-term."

Bret Kenwell, eToro's US investment analyst, noted that if the labour market and broader economy continue to hold up as rising energy prices fan inflation, the Fed will have less justification to cut interest rates.

"In other words, good news may actually be good news again – just not for investors hoping the Fed rides in with quick rate cuts," he said.

Investors often consider bad economic news to be good news in the sense it increases chances of interest rate cuts.

The dollar retreated against its main rivals.

The S&P 500 rose 0.8 percent to 7,398, the Dow closed almost unchanged at 49,609, and the Nasdaq rose 1.7 percent to 26,247. (AFP)



Edited by Robert Kemp