New York, July 3, 2026, 20:01 EDT
- U.S. markets stayed closed Friday for the Independence Day holiday. The last cash session ended Thursday.
- The Dow ended at a record high, while the Nasdaq slipped 0.8% after the semiconductor index tumbled 5.4%.
- U.S. tech funds pulled in $3.42 billion for the week ended July 1, ahead of the recent chip stock pullback.
- Investors will get Fed minutes next week, along with early earnings from Delta Air Lines Inc NYSE:DAL and PepsiCo Inc NASDAQ:PEP.
U.S. stock screens showed nothing new on the cash tape Friday night. Both the New York Stock Exchange and Nasdaq marked July 3, 2026, as closed for the observance of Independence Day. Nasdaq’s standard after-hours trading lasts from 4 p.m. to 8 p.m. ET on normal days.
Thursday saw a split close, and Friday’s fund-flow numbers showed investors buying into tech funds on the pullback. But chip stocks dropped again before the long weekend. Now Monday’s open is a test for whether buyers stick with tech as AI valuations get a tougher look.
| Last regular session | Close | Change | Week |
|---|---|---|---|
| Dow Jones Industrial Average | 52,900.07 | up 594.83, or 1.14% | around 2.0% higher |
| S&P 500 | 7,483.24 | up 0.01 | gained 1.8% |
| Nasdaq Composite | 25,832.67 | fell 207.36, down 0.80% | up 2.1% |
| Philadelphia Semiconductor Index | — | fell 5.4% | — |
The Dow set a record but it didn’t pull the rest of the market up. On the NYSE, advancers beat decliners 1.42-to-1, while Nasdaq saw more decliners than advancers, 1.05-to-1. Volume on U.S. exchanges totaled 19.92 billion shares, trailing the 20-day average of 23.34 billion.
Apple Inc NASDAQ:AAPL gained 4.8% after news it has plans for five new iPhone models, giving the main indexes some lift. NVIDIA Corp NASDAQ:NVDA slipped 1.4%. SanDisk Corp NASDAQ:SNDK sank 14.1%. Tesla Inc NASDAQ:TSLA shed 7.5%, even as its second-quarter deliveries beat what analysts expected.
| Stock or group | Thursday move | Investor read-through |
|---|---|---|
| Apple Inc NASDAQ:AAPL | +4.8% | Indexes got a lift from Apple as chips slumped |
| Philadelphia Semiconductor Index | -5.4% | AI-linked names took a second hit in a row |
| NVIDIA Corp NASDAQ:NVDA | -1.4% | Big-chip weakness stuck around |
| SanDisk Corp NASDAQ:SNDK | -14.1% | Memory names kept seeing outflows |
| Tesla Inc NASDAQ:TSLA | -7.5% | Profit-taking stuck even with solid deliveries |
ETF proxies after-hours told the same story before the holiday. The SPDR Dow Jones Industrial Average ETF Trust (NYSEARCA:DIA) last showed $527.88, up $5.50. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) was at $744.78, down 85 cents. Invesco QQQ Trust NASDAQ:QQQ traded at $712.60, off $12.33. Prices were at 0015 GMT Friday, 2015 EDT Thursday.
Flows added a twist. U.S. equity funds saw $1.03 billion in inflows for the week ended July 1, after investors pulled $3.47 billion the week before. Technology sector funds brought in $3.42 billion, following $19.97 billion in net sales the previous week.
| U.S. fund category, week to July 1 | Flow |
|---|---|
| U.S. equity funds | +$1.03 billion |
| Technology sector funds | +$3.42 billion |
| Financial funds | +$1.96 billion |
| Healthcare funds | +$1.47 billion |
| Large-cap funds | +$7.20 billion |
| Mid-cap funds | -$2.10 billion |
| Money market funds | +$47.82 billion |
The split in flows is telling. Investors sent cash to large-cap and tech funds, but mid-cap, small-cap and equity-income funds saw outflows. If chip stocks keep dropping, the sectors that just got inflows before the holiday might feel the first pressure to sell.
The jobs report handed equity bulls some rate relief, but also left doubts about labor demand. Nonfarm payrolls added 57,000 in June, missing the 110,000 Reuters poll estimate. Revisions cut April and May payrolls by 74,000. Labor-force participation dropped to 61.5%, the lowest since March 2021.
Adam Sarhan, CEO at 50 Park Investments, said the report “doesn’t mean the fear of inflation is over,” but it “takes the pressure off the Fed” for now. F.L. Putnam’s chief market strategist Ellen Hazen called the labor market “weaker than expected” but said it’s still “okay” if you look at the moving average. Reuters
Rate hike odds dropped quickly. Reuters said traders now see a 55% chance of a September hike, down from 64.1%, after the jobs data. In another Reuters report, short-term rate futures priced less than a 20% chance of a July move, and just under 60% for September, down from roughly 75% before.
Seema Shah, chief global strategist at Principal Asset Management, said the latest payroll data means the Fed isn’t being pushed to tighten. Shawn Snyder, economic strategist at Potomac Fund Management, said tech investors probably like the dip in yields given concerns over AI buildout expenses, but warned the jobs numbers may just delay any possible rate hike.
Looking to next week, investors may pay closer attention to Fed minutes on Wednesday since Chair Kevin Warsh has stepped back from forward guidance. Joe Mazzola, head trading and derivatives strategist at Charles Schwab, said he’ll watch if the move to market broadening sticks. James Ragan, co-CIO at D.A. Davidson, flagged a Fed tightening cycle as a risk “to the market and the valuations.” Reuters
Earnings season kicks off with consumer names, not big tech, in focus. Delta Air Lines Inc NYSE:DAL and PepsiCo Inc NASDAQ:PEP are on the calendar for next week. LSEG IBES data, cited by Reuters, put S&P 500 companies on track to boost Q2 earnings by over 24%.
