Wall Street closed higher on Thursday, driven by tech stocks to round off a holiday-shortened week. Semiconductor giant Nvidia grew closer to the $4 trillion valuation mark, while a strong jobs report boosted investor morale. All three benchmark indexes closed firmly in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.8%, or 344.1 points, to close at 44,828.53. Twenty-two components of the 30-stock index ended in positive territory, seven ended in negative while one remained unchanged.
The tech-heavy Nasdaq Composite added 208 points, or 1%, to close at 20,601.1.
The S&P 500 rose 51.94 points, or 0.8%, to close at 6,279.36. Nine of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) advanced 1.3%, 1.1% and 0.9%, respectively.
The fear-gauge CBOE Volatility Index (VIX) increased 5.1% to 17.48. A total of 10.9 billion shares were traded on Thursday, lower than the last 20-session average of 17.8 billion, with markets closing earlier than usual for the Independence Day weekend.
NVIDIA Drives Markets as Tech Stocks Rally
On Thursday, July 3, NVIDIA Corporation’s NVDA valuation surge fundamentally shaped broader market sentiment. Shares climbed roughly 1.3%, pushing the company’s market capitalization to nearly $3.9 trillion, briefly eclipsing Apple’s record and positioning Nvidia as the potential first-ever $4 trillion company.
This milestone underscored intense investor appetite for AI, reinforcing enthusiasm across the tech-focused Nasdaq and S&P 500, both of which closed at record highs. Nvidia’s valuation bolstered confidence that AI infrastructure remains a durable growth theme. Moreover, optimism that the United States might ease export restrictions on semiconductor sales to China provided an additional tailwind.
Consequently, shares of Intel Corporation INTC and Broadcom Inc. AVGO rose 2.8% and 2%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Per the Bureau of Labor Statistics, total nonfarm payroll employment increased by 147,000 in June. The number for May was revised up to 144,000 from the previously reported 139,000. The unemployment rate decreased to 4.1% in June from 4.2% in May. Average Hourly Earnings increased 0.2% in June after rising 0.4% in May. The average Workweek decreased to 34.3 in June from the 34.2 reported in May.
The U.S. Census Bureau reported that Factory Orders for May had increased 8.2%. The number for April was revised down to a decrease of 3.9% from the previously reported decline of 3.7%.
Per the Institute for Supply Management, the ISM Services Index for June came in at 50.8. The number for May remained unrevised at 49.9.
For the week ending June 28, initial claims came in at 233,000, a decrease of 4,000 from the previous week's revised level. Last week's level was revised up by 1,000 from 236,000 to 237,000. The 4-week moving average was 241,500, a decrease of 3,750 from the previous week's revised average. The prior week's average was revised up by 250 from 245,000 to 245,250.
Continuing claims during the week ending June 21 were 1,964,000, unchanged from the previous week's revised level. The prior week's level was revised down by 10,000 from 1,974,000 to 1,964,000. The 4-week moving average was 1,954,000, an increase of 15,500 from the previous week's revised average. This is the highest level for this average since November 20, 2021, when it was 2,004,250. The previous week's average was revised down by 2,500 from 1,941,000 to 1,938,500.
Weekly Roundup
Last Thursday, the three most widely followed benchmark indexes closed a third straight winning week. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite gained 2.3%, 1.7% and 1.6% respectively.
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Intel Corporation (INTC): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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