- The Dow Jones Industrial Average closed at a record 52,305.24 on Thursday after a softer-than-expected June jobs report, according to The Wall Street Journal and FRED data.
- Investors rotated out of AI-related stocks that had fueled the market’s rebound and into healthcare, consumer staples, and other sectors that had lagged during the chip-stock surge, the Journal reported.
- The weaker-than-expected jobs data lifted hopes that the Federal Reserve would hold off on raising interest rates, the Journal said.
Investors rotate from AI giants into healthcare, consumer staples
The Dow Jones Industrial Average climbed to a record on Thursday, closing at 52,305.24, after a softer-than-expected June jobs report raised expectations that the Federal Reserve would hold off on raising interest rates, according to The Wall Street Journal.
The market’s reaction reflected a shift in investor strategy, the Journal reported. Investors drove down shares of the AI giants that had fueled the market’s rebound from wartime lows and sparked new gains in healthcare, consumer staples, and other sectors that had been left behind during this year’s chip-stock surge.
The Dow’s record close came as the weaker-than-expected jobs data changed the rate-hike conversation on Wall Street. The Journal reported that the softer report lifted hopes the Fed would hold off on raising interest rates, a shift from recent market expectations that had been shaped by stronger labor-market data.
The rotation out of AI-related stocks and into defensive sectors marked a notable change in market dynamics. Earlier this year, as MSI previously reported, the Nasdaq composite fell 4.2% in a single day in June after a stronger-than-expected May jobs report raised the prospect of higher interest rates and fueled concerns about AI spending. The July 2 session reversed that pattern, with the weaker jobs data prompting a different market response.