Overview
- U.S. payrolls growth slowed sharply to 57,000 in June, a report released Thursday that cut traders’ expectations for near‑term Federal Reserve rate increases according to CME FedWatch data.
- The Dow closed at a record high as investors bought cyclical and value names, while the Nasdaq fell as heavy selling of semiconductor stocks dragged technology indexes lower.
- Chip and memory names experienced acute losses with the iShares Semiconductor ETF falling roughly 5.6% on the day, flash‑storage leader SanDisk down about 14%, and Micron retreating more than 5%, moves that also sent South Korea’s Kospi plunging near 8% before partial recovery.
- Crude oil eased after reports of progress in U.S.‑Iran technical talks and rising tanker transits through the Strait of Hormuz, a change that helped lift risk appetite and fueled a strong IT‑led rally in Indian markets despite continued foreign institutional selling.
- The swings reflect a concentrated, AI‑driven rally earlier this year that made indices sensitive to profit‑taking; investors will now watch Fed commentary, chip earnings and oil flows for clues on whether the rotation continues or reverses.