On June 29, 2026, the Dow Jones Industrial Average reached record highs as investors reacted to a weaker-than-expected nonfarm payrolls report for June, while the Nasdaq Composite struggled as semiconductor stocks faced declines again:
The 30-stock index added 594.83 points, or 1.14%, for a record close of 52,900.07. The index hit a new all-time intraday high of 52,903.85. The S&P 500 rose less than 1 point to end at 7,483.24, while the Nasdaq dropped 0.8% to 25,832.67:
Semiconductors fell for a second consecutive day, weighing on the latter two benchmarks. The VanEck Semiconductor (SMH) ETF dropped 4.5%, led by a 13.6% decline in Teradyne and an 11.5% slide for KLA. Shares of Nvidia also pulled back 1.4%, while shares of Micron lost 5.5%:
"This is a rotation potentially out of a sector that's been red hot for the last few months and into other areas, but I also do think that there's a little bit of a revaluation of the AI trade in itself," said Anshul Sharma, chief investment officer at Savvy Wealth:
Big jobs report miss
The June jobs report showed an increase of 57,000 last month, below the 115,000 jobs that economists polled by Dow Jones expected. The unemployment rate, however, dropped to 4.2%. Economists had forecast the rate to stay at 4.3%:
The 2-year Treasury note yield fell after the data on the notion the Federal Reserve will hold off hiking interest rates under these conditions:
