* US job growth beats expectations in April

* Cloudflare ( NET ) plunges as Q2 forecast disappoints

* Strong earnings boost investor optimism

(Updates with market close)

By Noel Randewich

May 8 (Reuters) - The S&P 500 and the Nasdaq notched

record highs on Friday, boosted by gains in Nvidia ( NVDA ), Sandisk ( SNDK ) and

other AI-related stocks, while a stronger-than-expected jobs

report pointed to labor market resilience.

Nvidia ( NVDA ) climbed, while memory and storage sellers

Micron Technology ( MU ) and Sandisk ( SNDK ) soared, lifted by

strong demand from the rapid buildout of AI data centers. Still,

despite the tech rally, most sectors in the S&P 500 were down

for the day.

The Philadelphia SE Semiconductor index jumped,

bringing its gain so far in the second quarter to about 54%.

The S&P 500 and the Nasdaq have surged to record highs this

week as investors focused on strong financial reports from U.S.

companies, setting aside concerns that high oil prices related

to the Middle East conflict are fueling inflation.

First-quarter S&P 500 earnings are on track to climb almost

29% year-over-year, with much of that growth fueled by Wall

Street's AI-related heavyweights, according to LSEG I/B/E/S.

"This is an economy that seems hard to wreck," said Rob

Williams, chief investment strategist at Sage Advisory Services

in Austin, Texas. "It's the productivity story, the spending,

the consumer wealth effect and the earnings."

Data showed U.S. employment increased more than expected in

April and the unemployment rate held steady at 4.3%, reinforcing

expectations that the Federal Reserve would leave interest rates

unchanged for some time.

Traders expect the central bank will hold interest rates

steady in the 3.50% to 3.75% range until the end of the year.

According to preliminary data, the S&P 500

gained 61.40 points, or 0.84%, to end at 7,398.51 points,

while the Nasdaq Composite gained 437.64 points, or

1.70%, to 26,243.84. The Dow Jones Industrial Average

rose 10.10 points, or 0.02%, to 49,607.81.

The S&P 500 and the Nasdaq notched their sixth straight

weekly gains, the longest such winning streak since October

2024. The Dow has logged two consecutive weekly advances.

The earnings optimism helped investors look past fresh

attacks between U.S. and Iranian forces in the Gulf.

Brent crude rose above $100 a barrel as hopes faded

for a quick resolution to the Middle East conflict and the

gradual reopening of the Strait of Hormuz, a key transit route

for oil and liquefied natural gas.

The U.S. said it expected a response from Tehran to its

latest proposal later on Friday.

Of the 440 S&P 500 companies that have reported

first-quarter results so far, 83% have topped analysts' earnings

estimates, according to LSEG. That compares with a long-term

average of about 67%.

However, there have been some earnings disappointments.

Cloudflare ( NET ) plunged after the cloud services company

said it would cut about 20% of its workforce and forecast

second-quarter revenue slightly below Wall Street expectations.

Trade Desk ( TTD ) fell after the ad-tech firm forecast

second-quarter revenue below Wall Street estimates.

CoreWeave ( CRWV ) dropped after the cloud infrastructure

technology company raised the lower end of its annual capital

expenditure forecast, citing a rise in component costs.

Online travel platform Expedia ( EXPE ) declined after it

flagged that the conflict in the Middle East was hurting demand.