Mixed Close for US Stocks as Chipmakers Continue to Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
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Source: NASDAQ.COM
- Market Divergence: On Thursday, the S&P 500 closed unchanged, while the Dow Jones Industrial Average rose 1.14% to a new all-time high, and the Nasdaq 100 fell 1.61%, indicating a split in market sentiment, particularly due to the ongoing weakness in chip stocks impacting the broader market.
- Employment Data Impact: US nonfarm payrolls rose by 57,000 in June, significantly below the expected 113,000, although the unemployment rate unexpectedly fell to a one-year low of 4.2%, suggesting a stronger labor market than anticipated, which may influence the Fed's interest rate decisions.
- Chipmaker Declines: Chipmakers faced another sell-off on Thursday, with the iShares Semiconductor ETF dropping over 5%, and SanDisk and KLA Corp falling more than 14% and 12%, respectively, reflecting growing market concerns over the sustainability of the AI buildout boom.
- Oil Price Decline Impact: WTI crude oil prices fell to a fresh 4.25-month low as UAE ramped up shipments by 30% in June, restoring exports to pre-war levels, a trend that may further lower inflation expectations and affect market sentiment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
