Wall Street closed higher on Thursday, driven by tech stocks to round off a holiday-shortened week. Semiconductor giant Nvidia grew closer to the $4 trillion valuation mark, while a strong jobs report boosted investor morale. All three benchmark indexes closed firmly in the green.
The Dow Jones Industrial Average (DJI) gained 0.8%, or 344.1 points, to close at 44,828.53. Twenty-two components of the 30-stock index ended in positive territory, seven ended in negative while one remained unchanged.
The tech-heavy Nasdaq Composite added 208 points, or 1%, to close at 20,601.1.
The S&P 500 rose 51.94 points, or 0.8%, to close at 6,279.36. Nine of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Financials Select Sector SPDR (XLF) and the Industrials Select Sector SPDR (XLI) advanced 1.3%, 1.1% and 0.9%, respectively.
The fear-gauge CBOE Volatility Index (VIX) increased 5.1% to 17.48. A total of 10.9 billion shares were traded on Thursday, lower than the last 20-session average of 17.8 billion, with markets closing earlier than usual for the Independence Day weekend.
On Thursday, July 3, NVIDIA Corporation’s NVDA valuation surge fundamentally shaped broader market sentiment. Shares climbed roughly 1.3%, pushing the company’s market capitalization to nearly $3.9 trillion, briefly eclipsing Apple’s record and positioning Nvidia as the potential first-ever $4 trillion company.
This milestone underscored intense investor appetite for AI, reinforcing enthusiasm across the tech-focused Nasdaq and S&P 500, both of which closed at record highs. Nvidia’s valuation bolstered confidence that AI infrastructure remains a durable growth theme. Moreover, optimism that the United States might ease export restrictions on semiconductor sales to China provided an additional tailwind.
Consequently, shares of Intel Corporation INTC and Broadcom Inc. AVGO rose 2.8% and 2%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Per the Bureau of Labor Statistics, total nonfarm payroll employment increased by 147,000 in June. The number for May was revised up to 144,000 from the previously reported 139,000. The unemployment rate decreased to 4.1% in June from 4.2% in May. Average Hourly Earnings increased 0.2% in June after rising 0.4% in May. The average Workweek decreased to 34.3 in June from the 34.2 reported in May.
