Trading Day: Chips are down, and so are payrolls

By Stephen Culp

NEW YORK, July 2 (Reuters) - Wall Street was ‌mixed on Thursday as weakness ​in semiconductors ​weighed on the Nasdaq, while the dollar dropped after a soft employment report eased rate-hike expectations at the end of a holiday-shortened week.

U.S. markets will be closed on Friday, July 3, in observance of Independence Day.

I will go into more detail on today's market moves ‌below. If you have more time to read, here are a few articles I recommend to help you make sense ⁠of what happened in markets today.

1. The U.S. economy added 57,000 jobs in June, unemployment dips to 4.2% as workforce declines

2. Federal Reserve policymakers have less impetus to raise interest rates after June ‌employment report

3. Russia launches a deadly missile and ‌drone attack on Kyiv, one of the biggest attacks in the war

4. U.S. and Iran delegates wrap up Doha talks; unfreezing Iranian assets and traffic in the Strait of Hormuz discussed

5. Tesla reports record second-quarter deliveries as rebound in European demand offset North American weakness

6. Tesla rival Rivian hikes 2026 ​delivery forecast, share price surges

7. U.S. factory orders fall in May, weighed by commercial aircraft

Today's Key Market Moves

• STOCKS: All 3 major U.S. stock indexes post weekly gains; Europe's STOXX index reaches record closing high

• SECTORS/SHARES: Healthcare was the strongest gainer among S&P sectors; tech, weighed by chips, was the biggest ⁠laggard

• FX: Dollar drops after soft jobs report, yen surges

• BONDS: U.S. Treasury yields retreat after soft payrolls data dampens rate-hike expectations

• COMMODITIES/METALS: Front-month WTI and Brent crude settle up 0.2% and 0.3%, respectively; gold ​gains more than 2%

Today's Talking Points

* Iran prepares to bury slain Supreme Leader with a week of mass mourning

Iran's ruling clerics are preparing for days of mass funeral rites for Ayatollah Ali Khamenei as a show of public devotion ​to the Islamic Republic and proof that its revolutionary fervor still burns strong.

Khamenei was killed ‌amid the first round of Israeli and U.S. strikes, and the funeral events will ensue in Tehran over the weekend, with mass processions planned across the country next week.

Organizers hope to mobilize millions of supporters throughout Iran's cities to proclaim the ⁠might of their theocratic state after it survived what they viewed as an existential war.

* Hedge funds see gains in June on short bets, lose on oil

Hedge funds wrapped up the last month of the second quarter with double-digit year-to-date gains, according to a Goldman Sachs note seen by Reuters on Thursday.

While stockpickers returned 4% last month, hedge funds that use ⁠fundamental analysis to assess a company's financial health posted an 18.4% return for the quarter, their strongest performance on Goldman's records. Their year-to-date result is 17.4%.

But losses stemmed from market ​volatility and short bets that asset prices would fall, as oil prices have returned to pre-Iran war levels, the bank said.

* Largest U.S. power grid PJM braces itself for "heat dome," data center boom

PJM, the largest power grid in the U.S., braced for record-setting energy consumption spurred by a sweltering heat wave, aggravated by the boom in energy-hungry data centers.

PJM ‌expects the system's 20-year demand record to be broken at about 6 p.m. EDT on Thursday, with a forecast peak power consumption of 166.2 gigawatts. The grid operator says it has the capacity to meet the challenge.

What could move markets ‌tomorrow?

• Developments in the Middle East

• Energy market moves

• Social media posts from Trump

• UK, Germany, Italy, France, Sweden, Spain, UAE, India, services PMI (June)

• Norway unemployment (June)

• France, Spain, Brazil industrial ⁠output (May)

• Turkey CPI (June)

• Italy retail sales (May)

• Mexico consumer confidence (June)

• Brazil trade ‌balance (June)

U.S. MARKETS WILL BE CLOSED ON FRIDAY, JULY ​3

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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and ‌freedom from bias.

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