A softer-than-expected June payrolls report drove the Dow to all-time highs while tech and chip stocks slumped on AI trade revaluation.
The Dow Jones Industrial Average climbed 0.6% to a new intraday record Thursday after June payrolls added just 57K jobs, missing the 115K consensus. The unemployment rate unexpectedly fell to 4.2%, easing immediate Fed rate-cut pressure.
Tech and semiconductor stocks led declines, with chip equipment makers dropping nearly 8% and heavyweights like Nvidia and Micron following. Traders cited a revaluation of the AI-driven capital-spending narrative rather than routine profit-taking.
The rotation favored older, cheaper Dow constituents, leaving the S&P 500 flat and the Nasdaq lower. Markets interpreted the jobs data as a sign of cooling labor demand without triggering recession fears.