Dow Jones Hits Record High at 52,900, Nasdaq Drops 0.8% as Chip Stocks Extend Sell-Off on Weak Jobs Data

Mumbai, July 3: US markets closed mixed ahead of the Independence Day holiday, with the Dow Jones hitting a record high while the Nasdaq fell. Weak June jobs data eased Fed rate hike worries, but semiconductor losses weighed on tech for a second day. 

The 30-stock Dow Jones Industrial Average (^DJI) climbed 594.83 points, or 1.14%, to settle at a record 52,900.07, having touched an all-time intraday high of 52,805.12. The blue-chip index is now pacing for a weekly gain of more than 1.7%, marking its fourth consecutive week of advances. 

Meanwhile, the S&P 500 (^GSPC) remained virtually unchanged, inching up by just 0.01 points to 7,483.24, while the Nasdaq Composite (^IXIC) dropped 207.36 points, or 0.80%, to close at 25,832.67, bringing its weekly gain to more than 2.4%despite Thursday’s decline. 

Dow Jones Industrial Average Scales Record High on Rotation Out of Technology 

The Dow rose 594.83 points to a record close of 52,900.07, driven by rotation from tech into value stocks as Treasury yields fell, supporting companies with stronger cash flows. 26 of 30 Dow components finished higher.  

Apple (AAPL) shares surged 4.72%, leading gains, followed by McDonald’s (MCD) +4.06%, Walt Disney (DIS) +3.86%, Amgen (AMGN) +3.55%, and Johnson & Johnson (JNJ) +3.35%. Visa (V) added 2.95%, while JPMorgan (JPM) slipped 0.03%. On the downside, Caterpillar (CAT) fell 2.70% and UnitedHealth (UNH) declined 0.53%, amid broader industrial weakness. 

Semiconductor Stocks Suffer Second Day of Losses as SMH ETF Plunges 5.2% 

Semiconductors extended declines, with the SMH ETF falling 5.2%. KLA (KLAC) plunged 11.51%, Lam Research (LRCX) dropped 10.22%, and Teradyne (TER) sank 13%. Memory stocks also weakened: Western Digital (WDC) -9.89%, Seagate (STX) -10.30%, and Micron (MU) -5.45%. The DRAM ETF fell nearly 15% weekly. SanDisk dropped over 11%, taking its 2-day fall past 20%. 

Among chip giants, Nvidia (NVDA) fell 2.1%, AMD dropped 4.28%, Intel (INTC) declined 5.24%, Applied Materials (AMAT) slid 7.31%, and ASML (ASML) lost 3.95%. Despite this, the SMH ETF had earlier surged 71% in Q2, marking a sharp reversal in sentiment. 

Also Read: How to invest in US stocks  

Tesla Shares Sink 7.5% Despite Blowout Q2 Delivery Numbers Beating Estimates 

Tesla (TSLA) shares fell 7.49% to $393.45 despite strong Q2 results showing 480,126 vehicle deliveries, beating estimates of 406,600. Deliveries rose 25% year-on-year and 34% quarter-on-quarter, while production stood at 451,758 units. The stock dropped in a “sell the news” move after gaining over 13% in four sessions ahead of the report.  

Energy storage deployments came in at 13.5 GWh, matching Street expectations but below some forecasts of 20.6 GWh, and recovering from 8.8 GWh last quarter. Meanwhile, Rivian (RIVN) jumped 9% after raising 2026 delivery guidance to 65,000–70,000 vehicles, up from 62,000–67,000. 

Netflix Shares Jump 5% for Best Day Since February as Tech Outperformer 

Netflix (NFLX) surged 4.64% to become a standout performer in the Nasdaq-100, marking its strongest single-day gain since 27 February. The move came despite broader tech weakness, with Netflix set to post a weekly gain of around 5.6% in a holiday-shortened trading week, significantly outperforming the Nasdaq Composite.  

The rally had no clear catalyst, though it may reflect positioning ahead of upcoming earnings and optimism around streaming competition dynamics. Meanwhile, Meta Platforms (META) fell 4.90% after reports it may rent computing infrastructure, with JPMorgan’s Doug Anmuth urging focus on core AI products.  

Alphabet (GOOGL) slipped 0.36%, while Microsoft (MSFT) rose 1.47%, Amazon (AMZN) gained 0.40%, and Apple (AAPL) jumped 4.72%. 

June Jobs Report Misses Estimates with 57,000 Additions, Cooling Fed Rate Hike Fears 

The US economy added 57,000 jobs in June, well below the 115,000 expected by economists, while the unemployment rate unexpectedly fell to 4.2%. Revisions also lowered April and May job figures, signalling a faster cooling labour market. 

The weaker jobs data has reduced expectations of a near-term Federal Reserve rate hike. Analysts said the slowing but still expanding labour market gives the Fed room to keep rates unchanged while monitoring inflation. Following the report, 2-year Treasury yields fell, the US dollar weakened, and traders scaled back bets on a September rate increase. 

Oil Prices Drop Fourth Consecutive Day as US-Iran Talks Show Positive Progress 

Oil prices fell for a fourth straight session as US–Iran talks showed positive progress, raising hopes of easing tensions and reopening the Strait of Hormuz. Brent crude (BZ=F) slipped 0.8% to below $71 per barrel, while WTI (CL=F) dropped 1.1% to under $68, hitting levels last seen in early March before the conflict escalated. Qatar’s foreign ministry said negotiations had made “positive progress,” with the next round expected after July 9. JPMorgan’s Natasha Kaneva noted prices are nearing pre-war levels despite earlier supply shocks, with easing crude costs supporting sentiment and reducing inflation pressure. 

Also Read: US Stock market timings  

Top Gainers and Losers: SL Science Holding Surges 34.6% as Chip Equipment Stocks Plunge 

The Nasdaq Composite saw sharp stock-level divergence, with healthcare and biotech names leading gains. SL Science Holding (SLBT) surged 34.61% to $5.99, topping the gainers list, followed by Polibeli Group (PLBL) up 18.20% to $10.26 and Genuine Parts Company (GPC) rising 13.34% to $133.06. SELLAS Life Sciences (SLS) climbed 12.92%, while Moderna (MRNA) gained 10.01% to $79.76. Other notable movers included Immunome (IMNM) up 9.87%, Aris Mining (ARIS) up 9.51%, Avis Budget (CAR) up 11.30%, and AeroVironment (AVAV) up 10.70%. 

On the downside, semiconductor and chip equipment stocks led declines. Regencell Bioscience (RGC) fell 20.67%, Vicor (VICR) dropped 19.21%, and Axcelis Technologies (ACLS) declined 18.97%. Veeco Instruments (VECO) slid 18.48%, while Bel Fuse (BELFA) and BELFB fell 18.29% and 16.07% respectively. Ultra Clean Holdings (UCTT) lost 17.84%, MaxLinear (MXL) dropped 17.15%, Aehr Test Systems (AEHR) fell 17.13%, Ouster (OUST) declined 16.96%, and ACM Research (ACMR) closed down 16.55%. 

Jersey Mike’s and Cumberland Farms File for US IPOs as Listings Market Revives 

Jersey Mike’s and Cumberland Farms have filed for US IPOs as listing activity shows signs of recovery. Jersey Mike’s, which operates around 3,300 stores across all 50 states, filed to list on the NYSE under “JMKE”. The 99% franchised sandwich chain reported $4.3 billion in systemwide sales in 2025, up 13% from $3.7 billion in 2024, with 3% same-store sales growth and nearly 20 years of positive annual growth. Founded in 1956 and franchised in 1987, it plans expansion toward 7,500 additional US stores and a long-term target of 15,000 globally. 

Cumberland Farms also filed for a Nasdaq listing under “CMBY”, highlighting its high-traffic store network and partnerships, despite reporting a $95 million quarterly net loss on higher revenue. 

The divergent market performance underscores the importance of sector allocation in the current environment, with rate-sensitive cyclicals outperforming technology names as the Federal Reserve maintains its holding pattern. The weaker jobs data suggests labour market cooling, reducing near-term rate hike risks while supporting defensive positioning in consumer staples and healthcare. Investors should monitor geopolitical developments in the Middle East for oil price direction and watch for second-quarter corporate earnings season beginning mid-July, which will provide crucial insights into margin sustainability and AI-related capital expenditure trends. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/