Wall Street Whipsaws as Weak Jobs Data Sparks Rate Pause Hopes, Chip Stocks Tumble
The Dow Jones Industrial Average surged nearly 600 points to a record close on Thursday after a weaker-than-expected jobs report signaled a cooling labor market, prompting investors to bet the Federal Reserve will pause its interest rate hikes [187885][187953]. However, the rally was uneven: the Nasdaq composite slid as chip stocks crashed again, with the Philadelphia Semiconductor Index dropping over 3% on concerns that slower hiring could reduce demand from key customers like automakers and data centers [187943][187885].
The mixed market performance reflects deep uncertainty about the pace of economic growth. The June nonfarm payrolls report came in far below expectations, easing fears that the Fed would raise rates later this month [187953]. Traders quickly reduced their bets on a rate hike, pushing some indexes higher while others stayed flat [187953]. Yet the same data that lifted the Dow also raised red flags for technology investors: major chipmakers like Nvidia and AMD led a sharp decline, extending a recent losing streak [187943].
In a separate pocket of optimism, electric-vehicle maker Rivian surged more than 5% after announcing a new partnership with a major charging network, a deal analysts say could boost consumer confidence in the company’s long-term viability [187943]. The contrasting moves—falling chip stocks but rising EV shares—highlight a market trying to balance slowing growth with selective optimism [187943].