U.S. stocks end mixed as chip weakness and soft payrolls weigh on rate outlook

U.S. stocks end mixed as chip weakness and soft payrolls weigh on rate outlook
Stocks mixed, chips weigh

A holiday-shortened trading week is ending with diverging moves across U.S. assets as investors weigh weaker labor data against sector-specific pressure in technology. U.S. markets are closed on Friday, July 3, for Independence Day, leaving Thursday's session to set the tone for weekly gains in the main indexes.

Highlights

  • Nasdaq dips as semiconductor stocks weaken, while softer U.S. payrolls data lowers dollar and reduces expectations for further Fed rate hikes.
  • Healthcare leads S&P sector gains this week but technology lags; all three major U.S. stock indexes nevertheless post weekly advances.
  • Gold rises more than 2%, WTI and Brent crude both settle higher, and Europe’s STOXX index hits a record close amid sector and regional divergences.

Semiconductors and jobs data shape trading

As reported by Reuters, Wall Street is mixed on Thursday as weakness in semiconductor shares weighs on the Nasdaq and a softer employment report pushes the dollar lower while easing expectations for further rate hikes.

All three major U.S. stock indexes post weekly gains, but sector performance is uneven. Healthcare is the strongest gainer among S&P sectors, while technology lags as chip stocks come under pressure.

In fixed income and currency markets, U.S. Treasury yields retreat after the payrolls data dampens rate-hike expectations. The yen strengthens against the dollar, while gold climbs more than 2%.

Energy, Europe and broader market signals

Oil prices also move higher, with front-month WTI and Brent crude settling up 0.2% and 0.3%, respectively. In Europe, the STOXX index reaches a record closing high, adding to the cross-market contrast seen by investors late in the week.

Beyond the main market moves, investors are also tracking broader developments including hedge fund performance and energy demand. A Goldman Sachs note seen by Reuters says hedge funds post double-digit year-to-date gains through June, while PJM, the largest U.S. power grid, is bracing for record electricity consumption driven by a heat wave and expanding data center demand.

In our earlier coverage of the Nasdaq 100 drop driven by semiconductor profit-taking, we explained how chip stocks triggered a broader pullback after the AI-fueled rally and pushed the index below its 20-day moving average while it stayed above longer-term trend lines. We also highlighted upcoming index rebalancing catalysts such as SpaceX’s scheduled inclusion, which could amplify volatility and keep key support levels in focus for short-term traders.

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