By Rodrigo Campos

A gauge of stocks across the world dipped on Thursday, weighed down by semiconductor shares, while the dollar fell as weak U.S. payrolls data eased bets that the U.S. Federal Reserve will raise interest rates by the end of the year.

A U.S. index of semiconductor shares NASDAQ:SOX dropped more than 6%. European stocks rose, boosted partly by the expectation of fewer rate hikes.

U.S. data showed job growth slowed more than expected in June while payroll gains for the prior two months were revised lower, pointing to a cooling labor market and dialing back expectations for a near-term interest rate hike from the Fed. Some 57,000 jobs were added last month, versus an expectation of 110,000.

The U.S. central bank "has been talking tough on inflation, and a stronger labor market would have only raised the temperature," said eToro U.S. investment analyst  Bret Kenwell. "Today's report doesn't scream labor-market trouble, but it does cool the narrative a bit."

The dollar index TVC:DXY, which measures the greenback against a basket of peer currencies, fell 0.52% — the most in two months — to 100.87, with the euro FX:EURUSD up 0.47% at $1.143. Against the Japanese yen FX_IDC:USDJPY, the dollar weakened 0.91% to 161.08.

Emerging market currencies also strengthened versus the dollar, up 0.3% on the day (.MIEM00000CUS).

Oil prices were little changed, with traders eyeing progress in talks between over ending the four-month war that shut shipping through the Strait of Hormuz.

U.S. crude NYMEX:CL1! rose 0.06% to $68.62 a barrel and Brent ICEEUR:BRN1! rose to $71.65 per barrel, up 0.11% on the day.

In equity markets, the chipmakers' pullback weighed on indexes with the S&P 500 CBOE:SPX falling 32.26 points, or 0.44%, to 7,450.97 while the Nasdaq Composite TVC:IXIC fell 309.35 points, or 1.19%, to 25,730.69. The Dow Jones Industrial Average DJ:DJI rose 291.82 points, or 0.56%, to 52,597.06. Meta Platforms NASDAQ:META fell more than 4%.

MSCI's gauge of stocks across the globe EURONEXT:IACWI fell 2.44 points, or 0.22%, to 1,115.51. The pan-European STOXX 600 TVC:SXXP index rose 1.41%, while emerging market stocks CBOE:EFS fell 33.61 points, or 1.95%, to 1,688.32.

Spot gold TVC:GOLD rose 2.21% to $4,118.79 an ounce and spot silver BIST:XAGUSD1! rose 2.54% to $60.64 an ounce, partly supported by the dollar's weakness.

U.S. markets will be closed on Friday to observe the Independence Day holiday, which falls on Saturday.