Home / Business and Economy / US Stocks Mixed: Dow Peaks, Chip Stocks Drag Nasdaq
US Stocks Mixed: Dow Peaks, Chip Stocks Drag Nasdaq
2 Jul
Summary
- Dow Jones briefly hit a new intraday record before falling.
- Profit-taking in chip stocks led to a decline in the Nasdaq.
- Investors are rotating from tech into traditional Dow companies.
On July 1, 2026, US stock markets presented a mixed performance. The Dow Jones Industrial Average briefly touched an intraday record high of 52,742.66 before closing slightly down. This pullback was partly influenced by a nearly 7% drop in Caterpillar shares.
The Nasdaq Composite experienced pressure as chipmakers faced profit-taking after strong gains in the first half of 2026. Micron and Sandisk each fell over 10%, though both remain significantly up year-to-date. Nvidia and Broadcom also saw modest declines.
This trading session followed a robust first half for US equities. The Dow gained 8.9%, the S&P 500 advanced 9.6%, and the Nasdaq climbed 12.8% from January 1 to June 30, 2026. The 'Great Rotation' from tech to Dow Jones companies is reportedly continuing into the third quarter.
Federal Reserve Chairman Kevin Warsh commented at a conference in Portugal, noting that "we've seen that prices are too high," though he offered no specific monetary policy guidance. Meanwhile, 32 companies in the S&P 500 reached new 52-week highs, including notable firms like Moderna and Palo Alto Networks.
