The New York Stock Exchange closed mixed as slowing U.S. job growth eased concerns about interest rate hikes, but continued selling pressure on semiconductor stocks led to a decline in the Nasdaq.
On July 2, the Dow Jones Industrial Average rose by approximately 594 points to close at 52,900.07, marking a 1.1% increase and a new all-time high. The Standard & Poor's 500 index remained flat at 7,483.24, while the tech-heavy Nasdaq fell 0.8% to finish at 25,832.67.
Market attention was focused on the June employment report released that day. The U.S. economy added only 57,000 non-farm jobs in June, significantly below the market expectation of 110,000. However, the unemployment rate held steady at 4.2%, which limited fears of a sharp economic downturn.
The slowdown in job growth reduced the likelihood of further interest rate hikes by the Federal Reserve. The yield on the 10-year U.S. Treasury note fell to around 4.48%. As interest rate pressures eased, buying activity increased in defensive sectors such as healthcare and consumer staples, as well as industrial stocks.
However, semiconductor stocks continued to struggle for the second consecutive day, with the Philadelphia Semiconductor Index dropping over 5%. This decline was attributed to profit-taking following a surge in AI-related stocks earlier in the year. Nvidia saw a decline of over 1%, while Micron and Lam Research also experienced significant losses.
Large tech stocks added pressure to the indices. Despite Tesla reporting second-quarter vehicle deliveries that exceeded market expectations, its stock fell by more than 7%. In contrast, Apple rose over 4% on anticipation of the new iPhone launch, contributing to the Dow's increase.
Sector performance showed that defensive stocks and traditional industries were relatively strong compared to large tech stocks. More than two-thirds of the S&P 500 constituents rose, but the weakness in semiconductor and AI-related stocks limited the overall index gains.
Investors adjusted their positions ahead of the Independence Day holiday, with U.S. markets closed on July 3. While the slowdown in job growth was viewed positively as a factor that could ease interest rate burdens, ongoing valuation concerns in AI-related stocks led to increased differentiation among sectors.
* This article has been translated by AI.
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