Overview
- A cooler‑than‑expected June nonfarm payrolls report on Thursday reduced investor concern about further Fed tightening and helped lift the Dow and S&P 500 while the Nasdaq slipped due to tech selling.
- The Dow jumped roughly 425 points and the S&P 500 rose about 39 points, while the Nasdaq Composite fell about 58 points as traders booked profits in AI and semiconductor names.
- Federal Reserve Chair Kevin Warsh said inflation expectations have moderated and indicated policymakers are not in a hurry to raise rates, a comment that reinforced the softer near‑term policy outlook.
- Progress in U.S.‑Iran talks and moves to reopen the Strait of Hormuz eased oil‑supply fears, pushing Brent below $71 a barrel and WTI below $68 and helping broader market sentiment.
- Investors are rotating into financials, industrials, energy and healthcare after an earlier AI‑driven tech rally produced outsized gains, and markets face elevated volatility as Q2 earnings and fresh inflation data approach.