NEW YORK — The Dow Jones Industrial Average climbed to a new all-time intraday high Thursday and closed sharply higher after a dramatically weaker-than-expected June jobs report gave investors fresh confidence that the Federal Reserve will hold off on raising interest rates, reversing a cautious posture that had built up through the first two days of the trading week.

The blue-chip index gained 350.64 points, or 0.67%, to close at 52,655.88, setting a record closing high and erasing the modest losses from the prior two sessions when profit-taking in semiconductor stocks and a reset of expectations around artificial intelligence spending had dragged the index back from its second-quarter record close. The S&P 500 also gained 0.7%, and the Nasdaq Composite advanced by the same margin, rebounding after Tuesday's chip-driven selloff.

The catalyst was the Labor Department's June nonfarm payrolls report, released Thursday instead of its usual Friday timing because U.S. financial markets will be closed Friday in observance of the Fourth of July holiday, which falls on Saturday this year. The report showed the U.S. economy added just 57,000 jobs in June, well below the Dow Jones consensus estimate of 115,000 and down sharply from the revised 122,000 added in May. The unemployment rate, however, dipped modestly to 4.2% from 4.3%, offering an offsetting signal that the labor market, while softening in terms of hiring, has not deteriorated enough to raise fresh concerns about a broader economic slowdown.

Bradford Smith, portfolio manager at Janus Henderson Investors, said the report shifted........

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