US markets ended Thursday mixed following a softer-than-expected jobs report for June. The Nasdaq Composite fell by 0.87%, or 226.28 points, closing at 25,813.75, primarily due to declines in technology and chip stocks. This marked its second consecutive day of losses in the semiconductor sector. Conversely, the Dow Jones Industrial Average rose significantly by 1.10%, or 560.00 points, to finish at 52,865.24, extending its longest weekly gaining streak since October 2024. The S&P 500 slipped marginally by 0.06%, or 1.53 points, to settle at 7,478.66, despite a majority of its stocks seeing gains, indicating that large-cap tech and AI stocks were dragging down the overall index.
The Labor Department reported that nonfarm payrolls increased by 57,000 in June, significantly below economists' estimates of 110,000. The unemployment rate stood at 4.2%, largely in line with expectations. This softer jobs data eased concerns about immediate interest rate hikes by the Federal Reserve, with September hike expectations dimming to 55% from 64.1%. Adam Sarhan, CEO of 50 Park Investments, noted that the report relieves pressure on the Fed for short-term rate increases, though inflation concerns, partly due to oil prices and the Middle East war, persist.
Key decliners included Tesla, which fell despite posting record second-quarter deliveries of 480,126 vehicles, surpassing estimates. Investors might be taking profits in chip stocks after strong year-to-date gains, according to Bruce Zaro of Granite Wealth Management. Other significant drops included Meta Platforms, down over 4%, Nvidia, down 2.2%, Micron Technology, down 5.8%, and Lam Research, down 11.4%. Bending Spoons, owner of Vimeo, also dropped 13.7% after its strong Nasdaq debut. The US market will be closed on Friday for the Independence Day holiday.
