Dow Hits Record as Chip Selloff Deepens for a Second Day; Nasdaq Falls 0.8%

Forecast Trend Report by Period

See more mid- to long-term trend analysis

U.S. stocks closed mixed on July 2 as semiconductor shares extended their slump and investors rotated into other sectors.

The Dow Jones Industrial Average rose 594.83 points, or 1.14%, to 52,900.07. The S&P 500 edged up 0.01 point to 7,483.24, while the tech-heavy Nasdaq Composite fell 207.36 points, or 0.80%, to 25,832.67.

The Dow finished at a record high.

Semiconductor stocks, however, posted steep losses for a second straight session. The Philadelphia Semiconductor Index tumbled 5.45%.

Among individual names, memory-chip maker Micron Technology fell another 5.49% after plunging 10.57% the previous day.

Nvidia also extended its decline for a second day, falling more than 1%.

Broadcom dropped 2.41%, AMD lost 4.26%, Intel fell 5.25%, and Marvell Technology sank 9.84%.

Tesla slid 7.49%. The electric-vehicle maker’s second-quarter deliveries topped market expectations, but the report appeared to prompt profit-taking. The stock had rallied 13.38% over the previous four trading sessions through July 1.

Funds flowed out of technology shares and into defensive stocks. Walmart rose 2.78%, Costco gained 2.92%, Coca-Cola added 3.51%, and Procter & Gamble climbed 2.70%. Drugmakers also advanced, with Eli Lilly up 1.86%, Johnson & Johnson rising 3.57%, AbbVie gaining 3.99%, and Merck up 3.34%.

Employment data released that day came in weaker than expected. U.S. nonfarm payrolls rose by 57,000 in June from a month earlier, well below the 115,000 increase forecast by Wall Street economists surveyed by Dow Jones.

CME FedWatch showed the probability that the Federal Reserve will keep its benchmark interest rate unchanged through December rose to 23% from 17% a day earlier. The odds of one rate increase fell to 77% from 83%.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com