US Jobs Report, Semiconductor Slump Shape Wall Street’s Mixed Close
Wall Street’s Performance and Key Market Drivers
By Stephen Culp
NEW YORK, July 2 (Reuters) - Wall Street was mixed on Thursday as weakness in semiconductors weighed on the Nasdaq, while the dollar dropped after a soft employment report eased rate-hike expectations at the end of a holiday-shortened week.
U.S. markets will be closed on Friday, July 3, in observance of Independence Day.
Market Recap and Recommended Reading
I will go into more detail on today's market moves below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
Top Financial and Economic Headlines
1. The U.S. economy added 57,000 jobs in June, unemployment dips to 4.2% as workforce declines
2. Federal Reserve policymakers have less impetus to raise interest rates after June employment report
3. Russia launches a deadly missile and drone attack on Kyiv, one of the biggest attacks in the war
4. U.S. and Iran delegates wrap up Doha talks; unfreezing Iranian assets and traffic in the Strait of Hormuz discussed
5. Tesla reports record second-quarter deliveries as rebound in European demand offset North American weakness
6. Tesla rival Rivian hikes 2026 delivery forecast, share price surges
7. U.S. factory orders fall in May, weighed by commercial aircraft
Today's Key Market Moves
Major Indexes and Sectors
• STOCKS: All 3 major U.S. stock indexes post weekly gains; Europe's STOXX index reaches record closing high
• SECTORS/SHARES: Healthcare was the strongest gainer among S&P sectors; tech, weighed by chips, was the biggest laggard
Currency and Bond Markets
• FX: Dollar drops after soft jobs report, yen surges
• BONDS: U.S. Treasury yields retreat after soft payrolls data dampens rate-hike expectations
Commodities
• COMMODITIES/METALS: Front-month WTI and Brent crude settle up 0.2% and 0.3%, respectively; gold gains more than 2%
Today's Talking Points
Geopolitical Developments
Iran’s Supreme Leader Funeral and Political Implications
* Iran prepares to bury slain Supreme Leader with a week of mass mourning
Iran's ruling clerics are preparing for days of mass funeral rites for Ayatollah Ali Khamenei as a show of public devotion to the Islamic Republic and proof that its revolutionary fervor still burns strong.
Khamenei was killed amid the first round of Israeli and U.S. strikes, and the funeral events will ensue in Tehran over the weekend, with mass processions planned across the country next week.
Organizers hope to mobilize millions of supporters throughout Iran's cities to proclaim the might of their theocratic state after it survived what they viewed as an existential war.
Hedge Fund Performance
* Hedge funds see gains in June on short bets, lose on oil
Hedge funds wrapped up the last month of the second quarter with double-digit year-to-date gains, according to a Goldman Sachs note seen by Reuters on Thursday.
While stockpickers returned 4% last month, hedge funds that use fundamental analysis to assess a company's financial health posted an 18.4% return for the quarter, their strongest performance on Goldman's records. Their year-to-date result is 17.4%.
But losses stemmed from market volatility and short bets that asset prices would fall, as oil prices have returned to pre-Iran war levels, the bank said.
Energy Infrastructure and Demand
* Largest U.S. power grid PJM braces itself for "heat dome," data center boom
PJM, the largest power grid in the U.S., braced for record-setting energy consumption spurred by a sweltering heat wave, aggravated by the boom in energy-hungry data centers.
PJM expects the system's 20-year demand record to be broken at about 6 p.m. EDT on Thursday, with a forecast peak power consumption of 166.2 gigawatts. The grid operator says it has the capacity to meet the challenge.
What Could Move Markets Tomorrow?
Upcoming Economic Data and Events
• Developments in the Middle East
• Energy market moves
• Social media posts from Trump
• UK, Germany, Italy, France, Sweden, Spain, UAE, India, services PMI (June)
• Norway unemployment (June)
• France, Spain, Brazil industrial output (May)
• Turkey CPI (June)
• Italy retail sales (May)
• Mexico consumer confidence (June)
• Brazil trade balance (June)
Market Closure Reminder
U.S. MARKETS WILL BE CLOSED ON FRIDAY, JULY 3
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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
