Wall Street wrapped up a shortened holiday trading week on a mixed note Thursday, with semiconductor weakness pulling down the Nasdaq even as a disappointing jobs report took some pressure off the Federal Reserve when it comes to raising interest rates.
U.S. markets will be closed Friday, July 3, in observance of Independence Day.
Key Market Highlights
Despite the uneven session, all three major U.S. stock indexes finished the week in positive territory. Europe’s STOXX index reached a record closing high. Among S&P 500 sectors, healthcare led the way as the strongest performer, while technology stocks — dragged down by chipmakers — brought up the rear. The U.S. dollar fell following the softer jobs data, while the Japanese yen surged. Treasury yields pulled back as the employment numbers dampened expectations for near-term rate hikes. In commodities, front-month WTI crude oil settled up 0.2% and Brent crude gained 0.3%, while gold climbed more than 2%.
Jobs Report Draws Attention
The U.S. economy added just 57,000 jobs in June, and the unemployment rate dipped to 4.2% as the overall workforce shrank. The modest figure gave Federal Reserve policymakers less reason to pursue additional interest rate increases, analysts noted.
Iran Prepares for State Funeral of Supreme Leader
Iran’s ruling clerics are making preparations for an extended period of national mourning following the death of Ayatollah Ali Khamenei, who was killed during the first round of Israeli and U.S. military strikes. Funeral ceremonies are scheduled to take place in Tehran over the weekend, with large processions planned across the country into next week. Organizers are hoping to draw millions of participants to demonstrate the enduring strength of the Islamic Republic following what they described as an existential conflict.
Hedge Funds Post Strong Quarter
Hedge funds closed out June with double-digit year-to-date gains, according to a Goldman Sachs note reviewed by Reuters. Funds relying on fundamental analysis of company finances posted an 18.4% return for the quarter — the strongest performance on Goldman’s records — bringing their year-to-date result to 17.4%. Individual stock pickers returned 4% last month. However, losses tied to market volatility and short positions on oil weighed on some funds, as crude prices fell back to pre-Iran war levels.
Nation’s Largest Power Grid Braces for Heat and Data Center Demand
PJM, the largest electrical grid in the United States, is preparing for potentially record-breaking energy consumption driven by a powerful heat wave and the rapid expansion of energy-intensive data centers. The grid operator forecast a peak power demand of 166.2 gigawatts around 6 p.m. EDT Thursday, which would surpass a 20-year demand record. PJM officials said they have sufficient capacity to handle the anticipated load.
Other Stories to Watch
Tesla reported record vehicle deliveries in the second quarter, with a rebound in European demand helping offset slower sales in North America. Meanwhile, Tesla competitor Rivian raised its 2026 delivery forecast, sending its share price sharply higher. U.S. factory orders fell in May, weighed down by a decline in commercial aircraft orders. Separately, U.S. and Iranian delegates concluded talks in Doha, where discussions covered the potential unfreezing of Iranian assets and shipping activity in the Strait of Hormuz.
What Could Move Markets Next Week
Traders will be watching for developments in the Middle East, energy market shifts, and social media activity from Trump. A range of international economic reports are also on the calendar, including services sector data from the UK, Germany, Italy, France, Sweden, Spain, the UAE, and India; unemployment figures from Norway; industrial output from France, Spain, and Brazil; inflation data from Turkey; retail sales from Italy; consumer confidence from Mexico; and Brazil’s trade balance.
