Dow notches fresh record, Nasdaq slides as Tesla sinks, semiconductors extend decline

US stocks diverged on Thursday as investors assessed a June jobs report that tempered expectations for the Fed’s next rate move, and a sell-off resumed in the chip sector.

The Dow Jones Industrial Average (^DJI) rose more than 1.1%, nearly 600 points, toward a new record, while the S&P 500 (^GSPC) was little changed. The tech-heavy Nasdaq Composite (^IXIC) fell 0.8% following Wednesday’s chip-sector-led slide.

Shares of EV maker Tesla (TSLA) dropped 7% despite easily surpassing vehicle deliveries estimates for the second quarter.

Investors digested the monthly jobs report after Federal Reserve Chairman Kevin Warsh urged Wall Street to look to data to map out the path for interest rates, rather than to the central bank for forward guidance.

The nonfarm payrolls release fell short of estimates, as the economy added 57,000 jobs in June, compared with the 113,000 expected. The unemployment rate came in at 4.2%, versus the 4.3% forecast. The cooler jobs reading broke a three-month hot streak, supporting the case for the Fed to continue to hold rates steady for now.

Elsewhere, pressure on techs lingered after a sell-off in South Korean chipmakers helped drive a 7.9% plunge for the Kospi (^KS11) stock benchmark. Chip stocks including AMD (AMD), Micron (MU), and Intel (INTC) continued to get hit.

Markets also weighed signs that US-Iran talks may be emerging from another rough patch. Oil prices fell after Qatar, the mediator, said this week’s discussions were positive, despite no breakthrough.