NEW YORK, July 3, 2026, 16:04 EDT
- U.S. exchanges closed for the Independence Day holiday. Markets reopen Monday for normal trading.
- Dow finished at a new high Thursday. S&P 500 was flat. Nasdaq ended lower.
- S&P 500 breadth was stronger than the index level suggested, with most stocks in the benchmark moving higher.
- Fed minutes and results from Delta and PepsiCo are on deck, and could be the next test for the rotation trade.
U.S. markets stayed closed Friday for the observed Independence Day holiday, leaving Thursday’s session as the last trading day before the extended weekend. The NYSE and Nasdaq both show July 3, 2026, as a full market holiday for Independence Day observed, according to the .
Holiday trading saw a split finish. The Dow Jones Industrial Average hit a record close, the S&P 500 inched up just 0.01, and the Nasdaq dropped, but all three major indexes still posted weekly gains. Under the surface, more than two-thirds of S&P 500 stocks rose Thursday—suggesting investors rotated out of crowded AI names instead of leaving stocks altogether.
| Index | Thursday close | Thursday move | Week | Year-to-date |
|---|---|---|---|---|
| S&P 500 | 7,483.24 | Up 0.01 point, less than 0.1% | Up 1.8% | Up 9.3% |
| Dow Jones Industrial Average | 52,900.07 | Gained 594.83, or 1.1% | Up 2.0% | Up 10.1% |
| Nasdaq Composite | 25,832.67 | Dropped 207.36, or 0.8% | Up 2.1% | Up 11.1% |
| Russell 2000 | 2,996.11 | Down 16.48, or 0.5% | Down 0.5% | Up 20.7% |
NYSE ended with advancers ahead of decliners by 1.42-to-1, and 318 stocks posted new highs while 111 hit new lows. On Nasdaq, decliners led, 2,548 to 2,419 advancers. The Philadelphia semiconductor index slid 5.4%. Nvidia NASDAQ:NVDA lost 1.4%. SanDisk NASDAQ:SNDK tumbled 14.1%. Apple NASDAQ:AAPL gained 4.8%, and Tesla NASDAQ:TSLA dropped 7.5% even after reporting Q2 deliveries above expectations. Adam Sarhan, chief at 50 Park Investments, said the jobs report “takes the pressure off the Fed to raise rates in the short term.” Reuters
The split’s key because the market didn’t crack in the heavy trading zones for most stocks. It happened in the biggest growth names. If chip losses stay isolated, Dow names, healthcare, and banks can help hold things up. But if AI names start to drop too, the S&P 500 could stall out even as most shares move higher.
The market move started after weaker labor numbers. Nonfarm payrolls rose by 57,000 in June, according to the Bureau of Labor Statistics. Unemployment hit 4.2%. Labor-force participation dropped to 61.5%. Leisure and hospitality lost 61,000 jobs. April and May payrolls got revised down by a total of 74,000. Average hourly earnings rose 0.3% for the month, up 3.5% from last year.
Rotation trades face a big test this week. The S&P 500 just wrapped up a 14.9% jump in the second quarter, its strongest since 2020, but action in tech and chip stocks has been shaky. Joe Mazzola, head trading and derivatives strategist at Charles Schwab NYSE:SCHW, said he’s watching “whether or not that broadening continues.” Matthew Miskin at Manulife John Hancock Investments said investors will look at “how incrementally hawkish are they leaning” in the Fed minutes. Delta Air Lines NYSE:DAL and PepsiCo NASDAQ:PEP are both on deck to report. S&P 500 earnings for the second quarter are on track for more than 24% growth, according to LSEG IBES data cited by Reuters. Reuters
Wall Street faces a lighter economic calendar coming out of the holiday. Services PMIs come out Monday. Trade balance numbers are due Tuesday. Wednesday brings the FOMC minutes and consumer credit, with jobless claims and existing home sales lined up for Thursday.
| Date | Event | Investor read |
|---|---|---|
| Monday, July 6 | S&P Global final services PMI; ISM services PMI | Markets watch if services demand or prices cool off after soft jobs |
| Tuesday, July 7 | May trade balance | Looks at goods demand and dollar impact |
| Wednesday, July 8 | FOMC minutes, 2 p.m. EDT; consumer credit | First long look at where Warsh’s Fed stands on rates |
| Next week | Delta Air Lines NYSE:DAL, PepsiCo NASDAQ:PEP earnings | Gauges signals on travel, staples, margins |
| Thursday, July 9 | Weekly jobless claims; June existing home sales | Checks if June’s jobs softness is widening out |
