Dow Hits Record 52,900 as Weak Jobs Data Crushes Rate-Hike Bets; Chip Rout Deepens

The Dow Jones Industrial Average surged to a record close of 52,900.07 on Thursday, driven by a weaker-than-expected June jobs report that crushed expectations for a Federal Reserve rate hike. The economy added just 57,000 jobs, roughly half the consensus estimate, while the labor force participation rate fell to a five-year low. However, the Nasdaq Composite slipped 0.8% as the Philadelphia Semiconductor Index plunged 5.4%, extending an AI-led selloff. Apple surged nearly 5% on foldable iPhone news, single-handedly keeping the S&P 500 flat. U.S. equity funds saw $17.2 billion in outflows for the week, the largest since March, as capital rotated into value sectors and Japanese stocks.

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Dow hits record 52,900 as weak jobs data crushes rate-hike bets The Dow Jones Industrial Average surged 594 points to a record close of 52,900.07 after the June jobs report showed just 57,000 payrolls added, roughly half the 115,000 consensus estimate. The miss, combined with downward revisions of 74,000 jobs for April and May, pushed the 2-year Treasury yield down and effectively removed September from the list of likely rate-hike dates, fueling a rotation into value stocks. 1 2 3 4

Nasdaq slips 0.8% as chip rout deepens on AI valuation fears The Nasdaq Composite fell 0.8% to 25,832.67, while the Philadelphia Semiconductor Index plunged 5.4%, marking its steepest two-day selloff since early June. Nvidia slipped 1.4%, SanDisk tumbled 14%, and the VanEck Semiconductor ETF dropped 4.5% as investors reassessed AI-driven growth potential and locked in profits after the sector's best-ever quarter. 5 6

Apple surges 5% on foldable iPhone plans, saves S&P 500 from deeper decline Apple shares jumped 4.8%, adding roughly $182 billion in market capitalization, after a Bloomberg report said the company instructed suppliers to prepare for a large-scale rollout of foldable iPhones this fall, with production targets raised to 10 million units. The surge single-handedly kept the S&P 500 flat, offsetting sharp declines in Tesla (-7.5%) and chip stocks. 1 7

U.S. equity funds see $17.2 billion weekly outflow, largest since March U.S. equity funds suffered $17.2 billion in net outflows during the week ending July 1, the largest redemption since March 2026, according to Bank of America citing EPFR Global data. In contrast, Japanese stock funds attracted $1.9 billion in inflows, the biggest in seven weeks, as capital rotated away from stretched AI valuations. 8

Labor force participation drops to 5-year low as 720,000 workers exit The labor force participation rate fell 0.3 percentage points to 61.5%, its lowest since March 2021, as 720,000 people left the labor force entirely. The headline unemployment rate ticked down to 4.2% only because these workers were no longer counted as unemployed, masking a weakening labor market where leisure and hospitality shed 61,000 jobs. 2 9

Microsoft gains 4.7% on $2.5 billion AI deployment push Microsoft shares rose 4.7% over the holiday-shortened week, outperforming the tech sector ETF by five percentage points, after announcing a $2.5 billion investment in Microsoft Frontier Company, a new unit placing 6,000 experts with clients to integrate and monetize AI solutions. The move addresses investor concerns about returns on massive AI spending. 10

Texas Stock Exchange launches trading, challenging NYSE and Nasdaq The Texas Stock Exchange (TXSE) officially commenced trading this week, backed by $275 million from major financial institutions including BlackRock, Citadel, and JPMorgan. The Dallas-based exchange aims to offer a 'CEO-friendly' and lower-cost alternative, with corporate listings expected in Q4 2026 and IPOs projected for early 2027. 11

AeroVironment jumps 19% on record earnings and $500 million Army contract AeroVironment stock surged 19% after reporting record Q4 and full-year fiscal 2026 revenue of nearly $2 billion, beating EPS estimates of $1.48 with actual $1.84. The U.S. Army also awarded the company a $500 million contract for counter-drone systems, with management guiding fiscal 2027 revenue of $2.125-$2.225 billion. 12

BlackBerry stock surges 48.6% on convertible note and QNX growth BlackBerry shares rallied 48.6% over five sessions, driven by a $200 million convertible-note deal now well above its conversion trigger and strong QNX revenue growth. The company reported its first positive Q1 operating cash flow in nine years and raised its fiscal 2027 outlook. 13

General Mills beats Q4 estimates, guides fiscal 2027 EPS of $3.00-$3.20 General Mills reported Q4 earnings of $0.95 per share, beating the $0.80 consensus estimate, with revenue of $4.61 billion. The company guided fiscal 2027 EPS to $3.00-$3.20 and expects $3 billion in cumulative cost savings through 2030, though management warned the consumer environment remains pressured. 14

Walmart shares drop 3.9% amid domestic sales slowdown concerns Walmart shares fell 3.9% on Wednesday, trading as low as $107.25, with volume surging 54% above average. Reports cited concerns that U.S. comparable sales may be slowing and that Walmart is relying on price cuts and tariff refunds to manage inventory, potentially pressuring margins. 15