World Shares Mixed After Dow Record as AI Stocks Bounce Back

Global stock markets delivered a mixed performance Friday, a day after the Dow Jones Industrial Average set a new record, as some artificial intelligence-related shares bounced back while chip stocks continued to weigh on broader indexes. US markets will be closed Friday for the Independence Day holiday.

Dow Hits Record, S&P 500 and Nasdaq Diverge

On Thursday, the Dow gained 1.1% to close at a record 52,900.07, buoyed by broad market strength. However, the rally masked a deeper divide. The S&P 500 finished virtually unchanged, edging up less than 0.1% to 7,483.24 despite seven out of ten stocks within the index rising. The Nasdaq composite dropped 0.8% to 25,382.67, dragged lower by continued selling in semiconductor and AI-linked shares.

Friday’s futures pointed to further mixed signals, with S&P 500 futures up 0.3% while Dow futures slipped 0.2%.

Jobs Report Offers Inflation Relief

Stocks received some support Thursday from a monthly jobs report showing US employers added 57,000 jobs in June — below the 100,000 economists had forecast and a slowdown from May’s pace. While the weaker reading signals some labor market cooling, investors welcomed the possibility that it could ease inflationary pressure.

With oil prices now trading below pre-war levels following a preliminary Iran ceasefire deal, and hiring slowing, the Federal Reserve may face less pressure to raise interest rates multiple times this year. Lower rates tend to benefit stocks and other investments by reducing borrowing costs for households and businesses.

AI Chip Stocks Remain Under Pressure

Semiconductor stocks continued to face headwinds on concerns that valuations climbed too high during the AI boom and that heavy spending on chips and data centers may not deliver the profit and productivity growth investors expected.

Micron Technology erased an early gain to fall 5.5% on Thursday, a day after plunging 10.6%. Nvidia dropped 1.4% and Lam Research sank 10.2%. The declines carried outsized weight on the S&P 500 because of the companies’ enormous market values — Nvidia alone has a total market capitalization of nearly $4.7 trillion, making its stock movements the single largest influence on the index.

Crypto Stocks Rise as Bitcoin Rebounds

Cryptocurrency-related stocks were among Thursday’s bright spots after bitcoin rose roughly 2%, recovering from near its lowest level since 2024. Robinhood Markets gained 3.8% and Coinbase Global climbed 3.9%. Bitcoin added a further 0.9% in early Friday trading.

Asian Markets Bounce Back Sharply

Asian markets staged a broad recovery Friday following two consecutive sessions of heavy tech-led losses. South Korea’s Kospi, which had plunged nearly 8% on Thursday, surged 5.8% to 8,088.34. Samsung Electronics jumped 8.2% and rival chipmaker SK Hynix rose 10.9%.

Japan’s Nikkei 225 advanced 1.5% to 69,744.07, with memory maker Kioxia surging 9.2%. Hong Kong’s Hang Seng climbed 1.3%, the Shanghai Composite added 0.4%, and Australia’s S&P/ASX 200 rose 1.4%.

“Asian stocks found some footing after two bruising tech-led sessions, with the Korean market once again showing how quickly a stretched rubber band can snap back when everyone leans the same way,” said Stephen Innes of SPI Asset Management.

European Markets and Commodities

In Europe, Germany’s DAX gained 0.4% while France’s CAC 40 edged 0.1% lower and Britain’s FTSE 100 shed 0.4%. Brent crude, the international benchmark, dipped slightly to $71.76 per barrel, while US benchmark crude fell 0.2% to $68.48. The dollar rose marginally against the Japanese yen to 161.14, while the euro climbed to $1.1451.