finance
Dow Hits Record High While S&P 500 and Nasdaq Fall on Weak June Jobs Report
The Dow Jones Industrial Average rose 330 points to a new intraday high of 52,805.12 on Thursday. Broader indexes fell as semiconductor stocks declined sharply after the jobs report.
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The Dow Jones Industrial Average rose 330 points, or 0.6 percent, on Thursday and reached a new all-time intraday high of 52,805.12, Cnbc reported. The S&P 500 fell 0.4 percent and the Nasdaq Composite dropped 1.2 percent. The June nonfarm payrolls report showed an increase of 57,000 jobs, below the 115,000 gain forecast by economists polled by Dow Jones.
The unemployment rate fell to 4.2 percent, compared with the 4.3 percent rate that had been expected. Semiconductor stocks led declines in the broader indexes. The VanEck Semiconductor ETF dropped 5.2 percent.
Teradyne and KLA shares each fell 13 percent, Nvidia shares declined 2.1 percent, and Micron shares lost 6 percent. The 2-year Treasury note yield fell after the data release. Anshul Sharma, chief investment officer at Savvy Wealth, said the moves reflected a potential rotation out of a sector that had been strong in recent months and some revaluation of the AI trade.
Bradford Smith, portfolio manager at Janus Henderson Investors, said the jobs print takes some pressure off the Federal Reserve to hike rates near term, though he noted Chairman Kevin Warsh's earlier comment that jobs data only becomes meaningful after the third revision. The major averages are on track to finish the holiday-shortened week with gains, Cnbc reported.
