NEW YORK, July 2 (Reuters) - Wall Street was mixed on

Thursday as weakness in semiconductors weighed on the Nasdaq,

while the dollar dropped after a soft employment report eased

rate-hike expectations at the end of a holiday-shortened week.

U.S. markets will be closed on Friday, July 3, in observance

of Independence Day.

I will go into more detail on today's market moves below. If

you have more time to read, here are a few articles I recommend

to help you make sense of what happened in markets today.

1. The U.S. economy added 57,000 jobs in June, unemployment

dips to 4.2% as workforce declines

2. Federal Reserve policymakers have less impetus to raise

interest rates after June employment report

3. Russia launches a deadly missile and drone attack on

Kyiv, one of the biggest attacks in the war

4. U.S. and Iran delegates wrap up Doha talks; unfreezing

Iranian assets and traffic in the Strait of Hormuz discussed

5. Tesla reports record second-quarter deliveries as rebound

in European demand offset North American weakness

6. Tesla rival Rivian hikes 2026 delivery forecast, share

price surges

7. U.S. factory orders fall in May, weighed by commercial

aircraft

Today's Key Market Moves

* STOCKS: All 3 major U.S. stock indexes post weekly gains;

Europe's STOXX index reaches record closing high

* SECTORS/SHARES: Healthcare was the strongest gainer among

S&P sectors; tech, weighed by chips, was the biggest laggard

* FX: Dollar drops after soft jobs report, yen surges

* BONDS: U.S. Treasury yields retreat after soft payrolls

data dampens rate-hike expectations

* COMMODITIES/METALS: Front-month WTI and Brent crude settle

up 0.2% and 0.3%, respectively; gold gains more than 2%

Today's Talking Points

* Iran prepares to bury slain Supreme Leader with a week of

mass mourning

Iran's ruling clerics are preparing for days of mass funeral

rites for Ayatollah Ali Khamenei as a show of public devotion to

the Islamic Republic and proof that its revolutionary fervor

still burns strong.

Khamenei was killed amid the first round of Israeli and U.S.

strikes, and the funeral events will ensue in Tehran over the

weekend, with mass processions planned across the country next

week.

Organizers hope to mobilize millions of supporters

throughout Iran's cities to proclaim the might of their

theocratic state after it survived what they viewed as an

existential war.

* Hedge funds see gains in June on short bets, lose on oil

Hedge funds wrapped up the last month of the second quarter with

double-digit year-to-date gains, according to a Goldman Sachs

note seen by Reuters on Thursday.

While stockpickers returned 4% last month, hedge funds that

use fundamental analysis to assess a company's financial health

posted an 18.4% return for the quarter, their strongest

performance on Goldman's records. Their year-to-date result is

17.4%.

But losses stemmed from market volatility and short bets

that asset prices would fall, as oil prices have returned to

pre-Iran war levels, the bank said.

* Largest U.S. power grid PJM braces itself for "heat dome,"

data center boom

PJM, the largest power grid in the U.S., braced for

record-setting energy consumption spurred by a sweltering heat

wave, aggravated by the boom in energy-hungry data centers.

PJM expects the system's 20-year demand record to be broken

at about 6 p.m. EDT on Thursday, with a forecast peak power

consumption of 166.2 gigawatts. The grid operator says it has

the capacity to meet the challenge.

What could move markets tomorrow?

* Developments in the Middle East

* Energy market moves

* Social media posts from Trump

* UK, Germany, Italy, France, Sweden, Spain, UAE, India,

services PMI (June)

* Norway unemployment (June)

* France, Spain, Brazil industrial output (May)

* Turkey CPI (June)

* Italy retail sales (May)

* Mexico consumer confidence (June)

* Brazil trade balance (June)

U.S. MARKETS WILL BE CLOSED ON FRIDAY, JULY 3

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