Wall Street Closes Lower as Semiconductor Stocks Take a Breather

The three major U.S. stock indices closed lower on the first trading day of the third quarter.

In particular, the Nasdaq and the S&P 500 saw a broad decline as selling pressure focused on technology stocks entered the market.

By sector, technology and industrial stocks both fell by more than 2%, leading the decline in the indices.

The market sentiment remained cautious overnight due to macroeconomic indicators and remarks from a Federal Reserve official.

Attending the European Central Bank forum, U.S. Federal Reserve Governor Kevin Warsh stated that while inflation risks have recently eased, prices remain too high. The market showed a partial rebound from its intraday lows immediately following his comments.

The ADP private sector employment report for June, released today, came in at 98,000, significantly missing Wall Street expectations. Additionally, the ISM Manufacturing Purchasing Managers Index for June fell to 53.3, down from the previous month, signaling a slowdown in the pace of manufacturing growth.

Regarding the situation in the Middle East, President Trump announced that U.S.-Iran talks were proceeding smoothly, leading to a decline in international oil prices.

Among major stocks, the semiconductor sector, which had been on an upward trend, took a breather as Micron plummeted 10%, and the Philadelphia Semiconductor Index plunged 6.27%.

On the other hand, Meta Platforms surged over 8% on news that it is expanding its AI cloud business and considering the external sale of surplus computing resources.

With trading volume shrinking ahead of the Independence Day holiday, the market is looking to the Department of Labor's June non-farm payroll report, to be released tomorrow, as a key variable that will determine the future direction of the market.
※ Please note: This article was translated by AI and may contain errors.