U.S. Markets Mixed as Weak Jobs Data Cools Rate-Hike Expectations

The Dow Jones Industrial Average climbed 594.83 points to 52900.07, while the Nasdaq Composite retreated 0.80% to 25832.67. Technology shares faced broad pressure, led by a 5.4% drop in the PHLX Semiconductor Index. Concerns mounted over potential overcapacity in data centers following reports that Meta Platforms intends to monetize excess AI computing power, a sentiment that echoed through declines in Asian memory-chip giants like SK Hynix and Samsung Electronics.

Corporate movements remained volatile across sectors. Tesla shares fell 7.5%, marking their sharpest single-day decline in nearly a year despite a 24.9% year-over-year increase in second-quarter deliveries. Conversely, Rivian Automotive jumped 8.4% after raising its full-year delivery forecast. In the financial space, Blue Owl Capital advanced 4.6% even as investors requested $4.7 billion in withdrawals from its flagship funds. Meanwhile, Alphabet shares slipped 0.5% after a European Union court maintained a $4.69 billion antitrust fine related to the Android operating system.

The broader economic outlook remains clouded by labor force participation, which hit its lowest level since early 2021 at 61.5%. While the unemployment rate dipped to 4.2%, analysts noted this movement stemmed primarily from workers exiting the labor force. Consequently, the probability of a July rate hike has faded to approximately 20%. Markets will remain closed Friday for the Independence Day holiday.