Dow Soars to Record Close; Nasdaq Declines as Chip Stocks Tumble

The Dow Jones Industrial Average surged to fresh record highs on Thursday as investors responded to a weaker-than-expected June jobs report, while the Nasdaq Composite declined as semiconductor stocks continued to struggle.

The 30-stock Dow gained 594.83 points, or 1.14%, to close at a record 52,900.07, after touching an all-time intraday high of 52,903.85. Meanwhile, the S&P 500 ended nearly flat, edging up less than 1 point to 7,483.24, while the Nasdaq fell 0.8% to 25,832.67.

Chip stocks remained under pressure for a second straight session, dragging on both the Nasdaq and S&P 500. The VanEck Semiconductor ETF (SMH) dropped 4.5%, with sharp losses in Teradyne, down 13.6%, and KLA, which fell 11.5%. Nvidia slipped 1.4%, while Micron Technology lost 5.5%.

Despite the tech weakness, major indexes posted solid gains for the shortened holiday week. The S&P 500 advanced 1.8%, while the Dow and Nasdaq climbed nearly 2% and 2.1%, respectively.

June’s nonfarm payrolls report showed the U.S. economy added just 57,000 jobs, well below economists’ expectations of 115,000. However, the unemployment rate improved to 4.2%, compared with forecasts of 4.3%.

Following the jobs data, the yield on the U.S. 2-Year Treasury Note moved lower, reinforcing expectations that the Federal Reserve may delay further interest rate hikes.