Weak jobs report lifts rate-cut bets as Dow hits record high — July 3, 2026

Top U.S. Stories

• The U.S. economy added just 57,000 jobs in June, well short of the 113,000 expected, a worrying sign for the labor market as wage growth has tracked below inflation for a third straight month.
• Despite the soft jobs data, the Dow Jones Industrial Average closed at a record high on July 2, as investors bet the report would keep the Federal Reserve from tightening further.
• U.S. markets are closed on Friday, July 3 for the Independence Day holiday.
• U.S.-Iran indirect talks in Doha paused ahead of the funeral of former Supreme Leader Ayatollah Ali Khamenei, which runs July 4–9. President Trump said talks had shown “positive progress.”
• Iran’s military warned oil tankers transiting the Strait of Hormuz must use approved routes or face a “forceful response,” keeping energy markets on edge.
• A record heat wave is expected to make this Fourth of July the hottest on record for millions of Americans, with more than 300 temperature records expected to fall by Saturday.

Markets

Ahead of the holiday, the Dow rose 1.14% to 52,900.07, a fresh record, while the S&P 500 finished little changed and the Nasdaq Composite slipped as Tesla and semiconductor stocks extended declines. Oil prices eased, with WTI crude trading in the $67–68 per barrel range on hopes for progress in U.S.-Iran talks. The dollar softened against the yen after the weak jobs report, trading in a 160.6–161.8 yen range; the frankfurter.app reference rate put USD/JPY at 161.58 as of July 2. In Tokyo, the Nikkei 225 rebounded to close its morning session up 0.74% at 69,243.68, even as Japan’s 10-year government bond yield touched 2.810%, its highest level in roughly 29 years, on concerns the Bank of Japan is falling behind on rate hikes.

Stocks in Focus

• Semiconductors and AI names: Chip stocks and Tesla extended recent declines as the Nasdaq underperformed, a pullback after a strong run this year.
• Dow blue chips: Cyclical and financial-heavy Dow components led the index to a record close even as the jobs report disappointed, reflecting bets on eventual Fed easing.
• Energy and tanker shippers: Iran’s warning over Strait of Hormuz routes put a geopolitical risk premium back on investors’ radar for oil transport names.

This is not investment advice; stocks mentioned are not buy or sell recommendations.