The Nasdaq Composite finished lower on Thursday as technology stocks declined, while a weaker-than-expected US employment report reduced concerns that the Federal Reserve might soon raise interest rates. The Dow Jones Industrial Average rose, marking its fourth straight weekly advance, the longest such run since October 2024. US markets will be shut on Friday for the Independence Day holiday.
A semiconductor index fell sharply for the second consecutive session, and technology ranked among the largest decliners in the S&P 500. Investors appear to be locking in gains in chip stocks after strong performance earlier this year, according to Bruce Zaro of Granite Wealth Management.
Tesla shares dropped notably despite the company reporting second-quarter deliveries that exceeded forecasts. The stock had climbed earlier in the week ahead of the results.
The nonfarm payrolls report showed the economy added 57,000 jobs in the prior month, well below the 110,000 expected by economists. The unemployment rate came in at 4.2 percent, close to forecasts.
Preliminary figures showed the S&P 500 slipping 1.53 points, or 0.06 percent, to 7,478.66, while the Nasdaq lost 226.28 points, or 0.87 percent, to 25,813.75. The Dow gained 560 points, or 1.10 percent, to 52,865.24.
The employment data followed several months of robust job growth. Odds of a rate increase by the Fed at its September meeting fell to 55 percent from 64.1 percent, based on CME FedWatch figures.
The report does not eliminate inflation concerns but eases immediate pressure on the central bank to tighten policy, said Adam Sarhan of 50 Park Investments. Oil prices declined after reports of progress in talks between Iran and the United States mediated by Qatar.
