July 2 (Reuters) - The Nasdaq closed lower on Thursday as technology stocks declined, while a weaker-than-expected U.S. jobs report eased concerns that the Federal Reserve will be forced to raise interest rates soon.

The Dow Jones index closed higher, posting gains for the fourth consecutive week, its longest winning streak since October 2024. The US market will be closed on Friday for the US Independence Day holiday.

The semiconductor companies index fell sharply for the second day in a row, and the technology sector was among the worst performing sectors in the Standard & Poor's 500 index.

Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts, said investors may be taking profits on chip stocks following the strong gains they have made this year.

He added, "We can clearly attribute this to mergers and acquisitions in the semiconductor sector."

Tesla's stock fell despite the electric carmaker reporting second-quarter sales that exceeded expectations. Tesla's stock had surged earlier in the week prior to the report's release.

The U.S. non-farm payrolls report showed the economy added 57,000 jobs last month, far below economists' expectations of 110,000. The unemployment rate was 4.2 percent, in line with forecasts of 4.3 percent.

According to preliminary data, the S&P 500 lost 1.53 points, or 0.06 percent, to close at 7478.66, and the Nasdaq Composite fell 226.28 points, or 0.87 percent, to 25813.75. However, the Dow Jones Industrial Average rose 560.00 points, or 1.10 percent, to 52865.24.

Investors were concerned about inflation, particularly given the sharp rise in oil prices linked to the war in the Middle East. Oil prices fell today after Qatar, which is acting as a mediator, announced that Iran and the United States had made progress in talks to end the war.