Dow Sets Record High Ahead of Independence Day as Job Reports Soften Rate Hike Fears

The Dow surged over 1% to achieve a record closing high before the U.S. Independence Day holiday, driven by softer than expected job numbers that eased rate hike worries. Despite gains in Apple, the Nasdaq dipped due to semiconductor losses. Tesla and Bending Spoons shares dropped significantly.

The Dow Jones Industrial Average climbed over 1%, reaching a record closing high prior to the long holiday weekend, following a lackluster U.S. jobs report that alleviated concerns about Federal Reserve interest rate hikes. Meanwhile, the Nasdaq fell as semiconductor stocks experienced a significant downturn.

The Dow marked a fourth consecutive week of gains, a first since October 2024, while the S&P 500 remained flat. On the economic front, the addition of 57,000 jobs in the U.S.—much lower than anticipated—coupled with a consistent unemployment rate of 4.2%, has decreased expectations for an imminent rate hike by the Federal Reserve.

Despite broader market gains, the semiconductor index dropped sharply by 5.4%, with Nvidia and SanDisk shares falling. Tesla's stock also declined 7.5% despite posting better-than-expected delivery numbers for the second quarter. The overall trading volume was below the average of recent sessions due to the holiday weekend.