The New York stock market ended mixed on the 2nd (local time) as profit-taking sales centered on artificial intelligence (AI)-related semiconductor stocks continued for a second day and investors rotated into other sectors.
On the New York stock market that day, the Dow Jones Industrial Average finished at 52,900.07, up 594.83 points (1.14%) from the previous session. With the day's gain, the Dow set a record high.
The Standard & Poor's (S&P) 500 index was virtually flat, closing at 7,483.24, up 0.01 point (0.00%) from the previous session. The tech-heavy Nasdaq composite fell 207.36 points (-0.80%) to 25,832.67 at the close.
AI-related semiconductor chip shares fell again, extending the previous day's decline. The Philadelphia Semiconductor Index, which consists of 30 major U.S.-listed semiconductor stocks, fell 5.4% on the day. The two-day drop exceeded 11%.
Memory maker Micron Technology fell 5.49% after plunging 10.6% the previous day.
AI chip bellwether Nvidia fell 1.39%, and major semiconductor corporations such as Broadcom (-2.41%), AMD (-4.26%), Intel (-5.25%), and Marvell Technology (-9.84%) also declined.
Tesla beat market expectations for second-quarter vehicle deliveries, but its shares plunged 7.49%.
By contrast, consumer staples rallied across the board, including Walmart (2.78%), Costco (2.92%), Coca-Cola (3.51%), and Procter & Gamble (2.70%). Pharmaceutical shares also rose, including Eli Lilly (1.86%), Johnson & Johnson (3.57%), AbbVie (3.99%), and Merck (3.34%).
Analysts say investors are taking profits after semiconductor stocks climbed sharply in recent months and are moving funds into other sectors.
Anshul Sharma, chief investment officer (CIO) at Savii Wealth, told CNBC, "Potentially, this could be a rotation out of sectors that have been hot in recent months," adding, "but I also think there is some degree of reassessment of the 'AI trade.'"
Meanwhile, the number of U.S. nonfarm jobs in June was tallied to have increased by 57,000 from the previous month, far below Wall Street's forecast of a 115,000 increase (Dow Jones survey). The employment data is expected to act as a factor that lowers the likelihood of a rate hike by the Fed within the year.