U.S. stocks were mixed Thursday as investors weighed a sharply weaker-than-expected June jobs report against lingering pressure in chip and AI infrastructure stocks. The Dow Jones Industrial Average rose roughly 0.6%, while the S&P 500 slipped about 0.2% and the Nasdaq Composite fell nearly 1% as technology shares remained under pressure.
The softer payrolls reading cooled some expectations for additional Federal Reserve rate hikes, giving investors a reason to buy more defensive and blue-chip names. Still, the broader market stayed cautious heading into America’s 250th Independence Day holiday, with U.S.-Iran technical talks in Doha and renewed AI infrastructure concerns keeping risk appetite in check.
Market Movers:
- National Beverage (FIZZ) +12%: Shares jumped after the LaCroix maker declared a special cash dividend of $3.25 per share following fiscal 2026 results. The company reported $1.2 billion in annual sales, a 37% gross margin, and rising cash levels while pointing to flavor innovation and lower commodity costs as drivers of future growth.
- Apple (AAPL) +4%: Shares rose following reports that Apple is negotiating to source components from blacklisted Chinese chipmakers for products sold in China. The move could help the company ease pressure from the global semiconductor shortage, which has already pushed up manufacturing costs and forced price increases across some devices.
- Adobe (ADBE) +3%: Adobe gained after HSBC upgraded the stock to Buy from Hold and raised its price target, arguing that fears of AI disruption are overdone. The firm pointed to Adobe’s double-digit revenue growth, strong remaining performance obligations, sticky creative software platform, and signs that AI-first revenue is already scaling.
- Palantir Technologies (PLTR) +3%: Shares climbed after DA Davidson upgraded the stock to Buy and raised its price target to $175. The firm said Palantir’s AI orchestration platform gives it a growing edge as companies look for tools that let them switch between AI models without disrupting operations.
- Can-Fite BioPharma (CANF) -15%: Shares fell despite positive Phase 2a data for Namodenoson in advanced pancreatic cancer. The trial met its main safety goal and showed encouraging survival signals, but investors appeared focused on the longer path ahead as the company prepares for a Phase 2b study.
- Ouster (OUST) -13%: Shares dropped after the lidar company priced a public offering of 3.62 million shares at $55.22 each. The offering is expected to raise about $200 million, with proceeds going toward working capital and general corporate purposes.
- Advanced Micro Devices (AMD) -4%: Shares fell as AI infrastructure and cloud-related stocks extended losses following reports that Meta plans to commercialize excess AI computing capacity. The development raised fresh concerns about oversupply and pricing pressure across AI infrastructure, also weighing on CoreWeave, IREN, and Intel.
Jobs Report Cools Rate Hike Expectations
The June jobs report showed the U.S. economy added just 57,000 jobs, far below expectations for 113,000 and sharply below May’s revised gain of 129,000. April and May payrolls were also revised lower, reinforcing signs that hiring momentum is slowing after a stronger spring. The unemployment rate ticked down to 4.2%, slightly better than expected, but the weak headline job gain helped temper confidence that the Fed will raise rates soon. Traders still see a rate hike as possible later this year, but odds eased after the report suggested the labor market may be losing steam.
Tech Stocks Stay Under Pressure
The Nasdaq lagged as chip and AI infrastructure stocks continued to struggle after a global tech sell-off. South Korean chipmakers SK Hynix and Samsung Electronics sank sharply overnight, adding to concerns that enthusiasm around AI spending may be running ahead of near-term fundamentals. Pressure also returned to U.S. semiconductor names as investors reassessed the impact of Meta’s potential move into selling excess AI compute. That raised questions about whether the AI infrastructure boom could eventually create too much capacity, weighing on chipmakers and cloud infrastructure providers.
Oil Falls as U.S.-Iran Talks Show Progress
Oil prices dropped for a fourth straight session after Qatar said there had been “positive progress” in U.S.-Iran talks. Brent crude fell below $71 a barrel, while West Texas Intermediate slipped under $68, bringing prices close to levels last seen before the early stages of the conflict. Lower oil prices helped ease some inflation concerns, though investors remain cautious because talks have not yet produced a breakthrough. Negotiations are expected to continue after funeral processions for former Iranian Supreme Leader Ayatollah Ali Khamenei on July 9.
Looking Ahead
Markets will be closed Friday for Independence Day, leaving investors to digest the weak jobs report, falling oil prices, and renewed pressure in technology stocks over the long weekend. The softer labor data gives the Fed more reason to stay patient, but inflation remains elevated enough to keep a later-year rate hike on the table. Next week, attention will return to U.S.-Iran talks, oil market stability, and whether chip stocks can recover from the latest AI infrastructure sell-off. With the second half of the year underway, investors are likely to stay focused on whether economic growth can slow just enough to cool inflation without damaging the broader market rally.
