NEW YORK, July 2 (Xinhua) -- U.S. stocks ended mixed on Thursday, as investors digested the jobs report for June that reduced the likelihood of near-term Federal Reserve rate hikes.
The Dow Jones Industrial Average rose 594.83 points, or 1.14 percent, to a new record high of 52,900.07. The S&P 500 added 0.01 points to close at 7,483.24. The Nasdaq Composite Index shed 207.36 points, or 0.8 percent, to 25,832.67.
Eight of the 11 primary S&P 500 sectors closed higher, led by health care and consumer staples with gains of 2.7 percent and 2.41 percent, respectively. Technology and communication services were the main laggards, declining 1.46 percent and 0.83 percent, respectively.
Investors assessed the monthly employment report after Federal Reserve Chairman Kevin Warsh emphasized relying on economic data rather than forward guidance when mapping out the path for interest rates. U.S. nonfarm payrolls increased by a seasonally adjusted 57,000 in June, the Bureau of Labor Statistics reported on Thursday, marking a significant slowdown and falling short of market forecasts.
The gain was weaker than the downwardly revised 129,000 jobs added in May and fell well below the Dow Jones consensus estimate of 115,000 and Bloomberg economists' expectation of 113,000. The unemployment rate remained at 4.2 percent.
According to the CME FedWatch Tool, traders now price in an 18-percent chance of a rate hike at the Fed's late-July meeting, down from 29 percent the previous day. Expectations for a hike in September have also eased to 54 percent from 64 percent prior to the data release.
Meanwhile, chip and memory stocks faced significant pressure again. The iShares Semiconductor ETF fell 5.5 percent, with Advanced Micro Devices dropping 4.26 percent, Marvell Technology tumbling nearly 10 percent, and declines also seen in Nvidia and Broadcom. The Roundhill Memory ETF lost nearly 8 percent, while SanDisk plunged more than 14 percent.
Tesla declined 7.49 percent even after the electric vehicle maker reported stronger-than-expected second-quarter deliveries of more than 480,000 vehicles, surpassing analyst estimates of around 400,000. Apple was the top gainer in the Dow Jones Industrial Average, rising nearly 5 percent, while Moderna advanced 10.01 percent and helped lead the broader health care sector's strength.
U.S. markets will be closed on Friday in observance of the Independence Day holiday. ■