SemiconductorSector Weakness Pulls Major Indices Down

The S&P 500 Index closed down -0.22%, the Dow Jones Industrial Average fell -0.03%, and the Nasdaq 100 Index declined -1.54%. E-mini S&P futures dropped -0.21%, while Nasdaq futures fell -1.57%. The selloff in semiconductor and AI-related stocks drove broader market declines, reversing recent gains. Weak U.S. economic data, including a lower-than-expected June ADP employment change of +98,000 and a 4-month low in June ISM prices paid at 73.0, added downward pressure.

Despite this, technology sector strength—particularly in software firms and the “Magnificent Seven” (Meta, Microsoft, Apple, etc.)—provided partial support. Fed Chair Jerome Powell emphasized reduced inflation risks, though gold prices remained pressured by energy market volatility. U.S. mortgage applications held steady, with 30-year fixed rates dropping to 6.57%.

Q2 earnings expectations remain bullish, with Bloomberg Intelligence forecasting a 23% earnings increase, driven largely by AI infrastructure investments. CRude oil prices fell for a fourth consecutive week, influenced by diplomatic progress in Iran nuclear talks.

Global markets showed mixed performance, with European indices down -0.72% and Japanese equities up +0.59%. U.S. Treasury yields rose as inflation expectations increased, though Fed rate cut expectations persist.

Key stock movers included a significant drop in chipmakers like KLA Corp (-1%), Micron (-9%), and Intel (-9%), while software companies such as Palantir (+7%) and ServiceNow (+6%) rallied. Energy sector representatives, including Alcoa and Caterpillar, faced declines due to market sentiment shifts.

Upcoming earnings reports from Lindsay Corp and National Beverage Corp are scheduled for July 2, 2026.

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