US equity markets opened higher Thursday, with the Nasdaq, S&P 500, and Dow Jones Industrial Average all gaining ground. This uptick followed a weaker-than-expected June nonfarm payrolls report, which significantly cooled expectations for further interest-rate hikes by the Federal Reserve. The Nasdaq Composite edged up 0.03% to 26,047.38 at the opening bell.

The jobs report showed only 57,000 nonfarm payrolls were added in June, falling far short of the 115,000 economists predicted. This slowdown has led traders to reassess the likelihood of near-term monetary policy tightening, with Fed funds futures showing less than a 20% chance of a July rate hike. The 10-year Treasury yield fell to approximately 4.47%.

Despite the broader market gains, semiconductor stocks continued their slide, extending Wednesday's declines. This sector, which had seen extraordinary gains in the first half, is experiencing profit-taking and rotation. Meta Platforms, however, surged on reports of its cloud computing ambitions, while major tech names like Microsoft and Apple also advanced, helping to support the Nasdaq.

The market's positive response to the jobs data suggests investors are favoring a scenario where the Fed might pause its aggressive rate-hiking campaign. This shift in sentiment, coupled with selective strength in tech and potential rotation into other sectors, sets a cautious but optimistic tone for the market.