The large cap market continued its rally during the holiday-shortened week, with the S&P 500 gaining 1.8%, the Nasdaq up 2.1%, and the Dow adding 2.0% to reach another record high.

Leadership shifted back to mega-cap technology. Communication Services was the best performing sector, helping drive the market higher. Semiconductor stocks remained volatile, however, as investors rotated away from some AI-related chipmakers and into other areas of technology.

Outside of tech, financials also posted strong gains, while health care and industrials contributed to the advance. 

Finally, economic data painted a mixed picture. June payroll growth came in weaker than expected, but unemployment remained low at 4.2%, easing fears of additional Federal Reserve rate hikes.