Wall Street finished the holiday-shortened week higher, with the Dow Jones Industrial Average climbing to another record as investors welcomed a weaker-than-expected US jobs report, while continuing to rotate out of semiconductor stocks.
The Dow rose 594.83 points, or 1.14%, to a record close of 52,900.07 after touching a fresh intraday high. The S&P 500 edged up less than one point to finish at 7,483.24, while the Nasdaq Composite fell 0.8% to 25,832.67.
Semiconductor stocks remained under pressure for a second straight session. The VanEck Semiconductor ETF dropped 4.5%, led by sharp declines in Teradyne and KLA. Nvidia fell 1.4% and Micron lost 5.5% as investors continued to take profits in AI-related names after their strong first-half rally.
Market strategists said the weakness reflected a rotation rather than a broader sell-off, with investors moving into sectors such as financials, healthcare and consumer discretionary. Despite the mixed session, all three major indices posted solid weekly gains. The S&P 500 rose 1.8% for the week, while the Dow and Nasdaq gained nearly 2% and 2.1%, respectively.
The June US non-farm payrolls report came in weaker than expected, reinforcing expectations the Federal Reserve is likely to leave interest rates unchanged at its July and September meetings. The softer labour market data helped support broader market sentiment, although investors remain focused on inflation and the outlook for monetary policy.
Australian Market Outlook
Australian shares are expected to open higher, tracking record gains on the Dow as investors welcomed softer US jobs data while continuing to rotate away from technology stocks. S&P/ASX 200 futures were up 52 points, or 0.6%, to 8,762.
Apple rallied 4.8%, lifting its market value to US$4.53 trillion after a five-session gain of more than 12%, while Tesla fell 7.5% despite reporting stronger vehicle deliveries. Semiconductor stocks remained under pressure, with the sector index falling another 5.4%.
Locally, investors will continue monitoring global interest rate expectations following the weaker US employment report, with the Federal Reserve’s next policy meetings scheduled for late July and mid-September.
