NEW YORK, July 3, 2026, 11:03 (EDT)
- U.S. cash equity markets will be closed Friday for the Independence Day holiday. NYSE and Nasdaq both show July 3, 2026, as a market holiday.
- The Dow finished at a new high of 52,900.07 on Thursday. The S&P 500 ended little changed, while the Nasdaq slipped 0.8%.
- Semis broke down, with the PHLX semiconductor index dropping 5.4%. That’s after the index rose about 78% for the year so far.
- Fed minutes lead off next week’s lineup, with Delta Air Lines NYSE:DAL and PepsiCo NASDAQ:PEP results also on deck.
U.S. stock markets did not hold regular trading hours Friday since the July 4 holiday was observed early this year, with Independence Day landing on Saturday. That made Thursday’s close the final full price for U.S. stocks ahead of the long weekend. On normal days, NYSE’s core session runs from 9:30 a.m. to 4:00 p.m. Eastern, with Nasdaq following the same hours.
| Index | Last cash close | Thursday move | Week move |
|---|---|---|---|
| Dow Jones Industrial Average (INDEXDJX:.DJI) | 52,900.07 | up 1.14% | gained 2.0% for the week |
| S&P 500 (INDEXSP:.INX) | 7,483.24 | rose just 0.01 point | up 1.8% for the week |
| Nasdaq Composite (INDEXNASDAQ:.IXIC) | 25,832.67 | fell 0.80% | rose 2.1% on the week |
The odd thing this week wasn’t market softness. It was about where the selling showed up. On Thursday, NYSE advancers led decliners 1.42 to 1, but on the Nasdaq, decliners edged out advancers 1.05 to 1. The S&P 500 finished up by just one-hundredth of a point. That’s important for investors since the index’s steady look actually masked a sharper rotation under the surface.
Semis dropped hard again. The PHLX semiconductor index slid 5.4% in a second straight day of steep declines. Nvidia NASDAQ:NVDA edged down 1.4%, while SanDisk NASDAQ:SNDK tumbled 14.1%. “Investors were probably locking in gains after a strong 2026 run,” said Bruce Zaro, managing director at Granite Wealth Management. The group is still up about 78% for the year. Reuters
Apple NASDAQ:AAPL helped support the Dow, jumping 4.8% after Nikkei Asia said it plans five new iPhone models. Tesla NASDAQ:TSLA dropped 7.5% even as its Q2 deliveries beat expectations, with the stock giving up ground anyway as strong numbers failed to steady crowded trades before the break.
The jobs report gave the Dow a lift, but failed to send a clear message for growth. The Labor Department reported nonfarm payrolls increased by 57,000 in June. The jobless rate was 4.2%. Hiring picked up in professional and business services, social assistance and health care, but leisure and hospitality shed jobs.
| Signal | Latest read | Market use |
|---|---|---|
| June nonfarm payrolls | +57,000 | Pulled back some Fed hiking bets |
| Unemployment rate | 4.2% | Looked stable, but labor force shrank |
| April-May revisions | -74,000 | Made it tougher to argue for strength |
| Labor force | About -700,000 in June | Raised questions over the jobless rate dip |
Daniel Zhao, chief economist at Glassdoor, said the drop in the unemployment rate was “good news for the wrong reasons.” The rate fell as people exited the labor force, not because hiring improved. According to Reuters, the labor force shrank by about 700,000 in June and is down roughly 1.3 million since January 2025. Reuters
Rate pricing shifted, but the market’s main risk is still out there. Reuters said chances of a September Fed hike dropped to 55% from 64.1% after the jobs report, citing CME FedWatch. Adam Sarhan, CEO at 50 Park Investments, said the data “takes the pressure off the Fed” for now, though “doesn’t mean the fear of inflation is over.” Reuters
The first big hurdle next week comes Wednesday with Fed minutes. Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments, says the focus is just “how incrementally hawkish” the policymakers are right now. James Ragan, co-CIO and research director at D.A. Davidson, said a tighter Fed stance would be “a risk to the market and the valuations.” Reuters
Earnings breadth is the next thing up. The S&P 500 gained 14.9% in the second quarter, its biggest move since 2020. Reuters, citing LSEG IBES data, said analysts see second-quarter earnings for the S&P 500 rising over 24%. Delta Air Lines and PepsiCo will report next week. Keith Lerner, chief investment officer at Truist Advisory Services, said companies will have to “validate the earnings trajectory.” Reuters
