Tech Stocks Slump Amid Easing Rate Hike Worries

The Nasdaq fell as tech shares declined, while a weaker U.S. jobs report reduced concerns about imminent interest rate hikes. The Dow rose, marking its longest winning streak since 2024. Chip stocks faced a sell-off after strong gains, and Tesla shares dropped despite exceeding delivery estimates.

The Nasdaq Composite index declined on Thursday, primarily due to a drop in technology stocks. This came after a U.S. jobs report that fell short of expectations, suggesting the Federal Reserve may not rush to hike interest rates.

While the Dow Jones Industrial Average posted gains for the fourth consecutive week, technology sectors including semiconductors were among the top decliners in the S&P 500. Investors appeared to be cashing in on earlier profits from chip stocks, noted Bruce Zaro of Granite Wealth Management.

In other market movements, Tesla shares fell despite surpassing second-quarter delivery forecasts. The U.S. nonfarm payrolls report showed a rise of only 57,000 jobs, missing expectations of 110,000, which eased pressure on the Fed for immediate rate hikes. Separately, oil prices dropped following positive diplomatic developments involving Iran and the U.S.