The S&P 500 and Nasdaq fell on Thursday as technology shares slid for a second day, while the Dow climbed toward another weekly gain. A softer-than-expected June jobs report eased fears that the Federal Reserve might soon raise interest rates.
The S&P 500 lost 54.40 points, or 0.72%, to 7,429.31, and the Nasdaq Composite dropped 403.04 points, or 1.54%, to 25,636.99. The Dow Jones Industrial Average bucked the trend, rising 162.66 points, or 0.32%, to 52,470.59.
Tech drags the market down
The decline centered on chipmakers. The Philadelphia SE Semiconductor index fell 6.7% as the sector sold off for a second session, with many investors cashing in on its lofty valuations. Tesla added to the pressure, its shares falling 7.8% even after the carmaker posted second-quarter deliveries above estimates.
The Dow, by contrast, was on track for its fourth consecutive weekly gain — its longest such streak since October 2024. The U.S. market will be closed on Friday for the Independence Day holiday.
Jobs data cools rate worries
The move followed a weaker labor report. The U.S. economy added 57,000 jobs last month, far below economists' estimates for a rise of 110,000, while the unemployment rate came in at 4.2%. Because of the soft print, expectations for a rate hike from the Fed eased, with odds for the September meeting slipping to 55% from 64.1%, according to CME FedWatch.
Even so, the relief was partial. According to Reuters, the report "doesn't mean the fear of inflation is over," said Adam Sarhan, chief executive at 50 Park Investments.
Oil eases inflation pressure
Investors have worried about inflation partly because of sharp gains in oil prices tied to the Middle East war. On Thursday, oil prices fell more than 1% to a four-month low after mediator Qatar said Iran and the U.S. had made progress in talks over ending the war.
Source: Reuters
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