Global markets traded in negative territory on Thursday, July 2, 2026, as a sharp selloff in technology and artificial intelligence (AI) stocks weighed on investor sentiment. The decline, particularly pronounced in semiconductor shares, led to broader market weakness across Asia and Europe, with only pockets of strength emerging in certain sectors.
The technology sector's downturn was fueled by concerns over high valuations and the uncertain near-term profitability of substantial AI spending by major firms. Shares of prominent chipmakers like Micron Technology and Nvidia saw notable drops, impacting benchmark indices such as the Nasdaq. This tech-driven weakness spilled over into Asian markets, with South Korea's Kospi index experiencing a significant decline.
Market participants are now turning their full attention to the U. S. nonfarm payrolls report, due for release today. This key economic indicator is expected to provide crucial insights into the health of the American labor market and influence expectations for future Federal Reserve monetary policy. Analysts suggest that a strong payrolls number could signal economic resilience, potentially leading to volatility in interest rate expectations, while a weaker-than-expected figure might ease concerns about inflation and interest rate hikes.
In other market movements, gold prices saw a modest increase, supported by comments from Federal Reserve Chair Kevin Warsh indicating a cooling of inflation risks. Meanwhile, oil prices experienced a slight dip. Investors are navigating these mixed signals as they prepare for the upcoming holiday weekend, with U. S. markets set to close early on Friday ahead of the July 4th holiday.
