Dow Closes at Record High as June Jobs Miss Eases Rate-Hike Fears to 17.6%

According to the Bureau of Labor Statistics, nonfarm payrolls in the U.S. increased by 57,000 in June, below the expected 115,000, while the Dow Jones Industrial Average closed at a record high of 52,900.07, up 1.1% on Thursday. The S&P 500 ended flat at 7,483.24, and the Nasdaq 100 eased 1.6% to 29,329.21. The unemployment rate came in at 4.2%, below expectations of 4.3%.

Weaker-than-expected jobs data led to a sharp decline in rate-hike odds. According to the CME FedWatch tool, the probability of a 25-basis-point rate increase fell to 17.6% on Thursday, down from 28.9% a day ago. Meanwhile, semiconductor stocks declined sharply, with the Philadelphia Semiconductor Index falling 5.4% and the VanEck Semiconductor ETF (SMH) dropping 4.5%.