Dow Nears Record, S&P 500 and Nasdaq Retreat on Semiconductor Sell-Off
SPY•The Dow Jones Industrial Average approached a fresh intraday record on July 2 but saw the S&P 500 and Nasdaq Composite shift to losses after initial gains from the US June jobs report evaporated. Semiconductor stocks spearheaded the pullback, dragging broader indices lower.
1. Market Overview
On July 2, the Dow Jones Industrial Average rallied intraday toward a new record but finished off highs as the S&P 500 and Nasdaq Composite turned negative. Traders initially cheered the June US jobs report before sentiment soured.
2. Jobs Report Reaction
Headline payroll gains fell short of consensus and wage growth figures prompted profit-taking across rate-sensitive sectors. Investors pared back positions after re-evaluating economic strength.
3. Semiconductor Sector Pullback
Major chipmakers led declines, with several recording double-digit intraday reversals that erased morning advances. Concerns over stretched valuations and shifting supply dynamics weighed heavily on sector sentiment.
4. Implications for SPY
The S&P 500 ETF mirrored the broader index shift, dipping after early gains and testing support near its 50-day moving average. Ongoing volatility in semiconductor names may challenge SPY’s near-term resilience.
