Finance

While the S&P 500 and Nasdaq experienced volatility, the Dow Jones Industrial Average surged to a new all-time high of 52,900.07 during the holiday-shortened week. This rally was fueled by a rotation into traditional and defensive sectors, such as industrials, retail, and financials, as investors sought safety outside of high-valuation growth names.

Tech-heavy indexes were weighed down by a significant sell-off in semiconductor stocks, with the Philadelphia Semiconductor Index dropping over 5% in a single session. Companies like Micron and Applied Materials saw double-digit declines as investors questioned whether the artificial intelligence infrastructure trade has become overextended relative to near-term profitability.

Gold experienced a strong rebound in early July, with prices breaking above the $4,100 per ounce threshold following weak U.S. employment reports. The precious metal is benefiting from a weakening U.S. Dollar Index and a shift in sentiment that views bullion as a critical hedge against potential macroeconomic shifts in the second half of 2026.