How major US stock indexes fared Wednesday 7/1/2026

U.S. stocks ended mixed to lower Wednesday as weakness in technology and semiconductor shares outweighed support from a softer-than-expected manufacturing report and easing bond yields.

The S&P 500 fell 0.2% to 7,483.23. The Dow Jones Industrial Average slipped 13.96 points, or less than 0.1%, to 52,305.24. The Nasdaq composite dropped 173.69 points, or 0.7%, to 26,040.03. The Russell 2000 lost 11.78 points, or 0.4%, to 3,012.59.

Tech leads the decline

Semiconductor and other high-multiple technology stocks were the main drag on the session. AP cited Micron Technology, AMD and Nvidia among the weaker names.

That pressure came after a strong run for the major indexes in the second quarter, leaving investors sensitive to valuations and any shift in rate expectations.

Manufacturing data and yields

Earlier in the day, the Institute for Supply Management said U.S. factory activity continued to expand in June, with its manufacturing purchasing managers index at 53.3. That was below expectations for 53.9 and down from 54.0 in May, but still above the 50 mark that signals expansion.

The report also showed easing price pressure, with the ISM prices index falling 9.1 percentage points from May. Traders took that as a reason for Treasury yields to ease after earlier swings, helping support parts of the market.

Fed backdrop

The bond-market move followed remarks from Federal Reserve Chair Kevin Warsh in Sintra, Portugal, where he said inflation risks have eased since the last Fed meeting and declined to offer guidance on whether the central bank will move in July.

The manufacturing data and Warsh's comments kept attention on the Fed's next steps, especially for rate-sensitive sectors and the market's largest technology stocks.

What traders are watching

AP said the S&P 500 remained up 1.8% for the week, the Dow 0.8%, the Nasdaq 2.9% and the Russell 2000 0.1%.

Going into the next session, traders will be watching whether Treasury yields keep easing, whether semiconductor weakness broadens beyond a handful of names and whether fresh Fed commentary changes the July rate outlook.