US stocks split as the Dow hits a record and chip-equipment stocks sink: Dow +1.14%, Nasdaq -0.80% on July 2, 2026

S&P 500 close: 7,483.24 (+0.00%) Breadth: 8 of 11 S&P 500 sectors higher; Technology and Consumer Discretionary the only material decliners Sentiment: mixed

The S&P 500 finished July 2, 2026 at 7,483.24, unchanged on the day, as a record 1.14% gain in the Dow to 52,900.07 offset a 0.80% drop in the Nasdaq to 25,832.67. Semiconductor-equipment stocks led the decline, with Axcelis (ACLS.US) down 18.97% and Vicor (VICR.US) down 19.21% as analysts flagged slowing wafer-fab-equipment orders. June nonfarm payrolls rose just 57,000 against a 110,000 forecast, the smallest gain in four months, which pushed money into defensives and cut the dollar 0.52%.

What moved the index

The flat S&P close hid two forces that nearly cancelled.

• Semiconductors dragged. The chip-equipment group sank on capex-slowdown fears: Teradyne (TER.US) fell 13.63%, KLA (KLAC.US) 11.51%, Lam Research (LRCX.US) 10.19% and Applied Materials (AMAT.US) 7.35%, with the smaller names down harder. Memory and networking chips followed, Micron (MU.US) 5.49% and Marvell (MRVL.US) 9.84%. The semiconductor group fell 4.54%, worth roughly 45 basis points of drag on the S&P.
• Apple and defensives offset. Apple (AAPL.US) rose 4.84% after Nikkei reported a plan for at least five new iPhone models between the second half of 2026 and the first half of 2027, adding about 34 basis points to the S&P on its own. Health Care gained 2.63%, Utilities 2.21% and Consumer Staples 2.03% as the soft jobs print lifted rate-sensitive and defensive sectors.
• Jobs repriced the Fed. June payrolls of 57,000, plus downward revisions of 74,000 across April and May, pushed the next expected Fed move from October out to December. The dollar index fell 0.52% to 100.86 and the 10-year Treasury yield held at 4.485%.

Apple alone added about 34 basis points and the semiconductor group subtracted roughly 45; defensive-sector gains and Tesla's decline netted out the rest, leaving the cap-weighted S&P flat while the price-weighted, value-tilted Dow set a record.

Session highlights

• The Dow closed at 52,900.07, up 594.83 points or 1.14%, a record, led by Health Care and industrial names.
• The Nasdaq Composite fell 207.36 points to 25,832.67, down 0.80%, its weakness concentrated in chip and chip-equipment stocks.
• The VIX fell 2.65% to 16.15, a calm reading that marks this as an orderly rotation rather than a fear-driven selloff.
• Tesla (TSLA.US) fell 7.49% even after reporting 480,126 second-quarter deliveries, up 25% year over year and above the roughly 406,000 consensus, a sell-the-news reaction ahead of full results on July 22.
• Nasdaq-100 futures extended the tech weakness after the close, down 1.80%, while S&P 500 futures slipped 0.27%.

Sector scorecard

• Best: Health Care +2.63%
• Worst: Technology -2.71%; the semiconductor group fell 4.54%
• Dispersion (best sector minus worst): 5.3 points
• 8 of 11 S&P 500 sectors closed higher. Utilities +2.21%, Consumer Staples +2.03%, Materials +1.94% and Financials +1.53% all gained, leaving Technology and Consumer Discretionary (-0.82%, weighed by Tesla) as the only decliners.

Top movers

After-hours and next session

• No major companies reported after the close on this pre-holiday session. US cash markets are closed Friday, July 3, for Independence Day observed, since July 4 falls on a Saturday.
• Tesla's full second-quarter financials are due July 22 and Genuine Parts reports second-quarter results on July 21.
• The next scheduled US catalysts are the June CPI report and the start of second-quarter bank earnings later in July.

Next session catalysts (ET)

• Fri Jul 3: US cash equity and bond markets closed for Independence Day (observed).
• Mon Jul 6: Trading resumes; the open test is whether chip-equipment selling extends after Nasdaq-100 futures closed down 1.80%.
• Later in July: June CPI and the opening of second-quarter earnings season.

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