We undertake a semiclassical analysis of the spectral properties (modulations of photoabsorption spectra, energy level statistics) of a simple Rydberg molecule in static fields within the framework of Closed-Orbit/Periodic-Orbit theories. We conclude that in addition to the usual classically allowed orbits one must consider classically forbidden diffractive paths. Further, the molecule brings in a new type of 'inelastic' diffractive trajectory, different from the usual 'elastic' diffractive orbits encountered in previous studies of atomic and analogous systems such as billiards with point-scatterers. The relative importance of inelastic versus elastic diffraction is quantified by merging the usual Closed Orbit theory framework with molecular quantum defect theory. 32.60.+i, 03.65.Sq Gutzwiller Periodic Orbit theory (POT) [1] represents a very successful technique for establishing a correspondence between quantum properties and classically chaotic dynamics. Recently there has been much interest in diffractive POT, e.g. [2], for systems with a dynamical structure smaller or comparable to one de Broglie wavelength. These studies were restricted to a structureless point-scatterer, such as a simple s-wave scatterer. It is an interesting question, from the point of view of quantum chaology, to consider the effect of a diffractive scatterer with internal structure, such as for example a two-level particle. In fact we show here that this model provides us with the key to analyze semiclassically, for the first time, the spectra of diatomic Rydberg molecules such as H 2 in static fields. We find that features such as the interference between Rydberg series converging on different energy thresholds depend on a novel type of inelastic diffractive trajectory.Highly excited hydrogen atoms in static magnetic fields represents a well-known paradigm of quantum chaology: modulations in the quantum density of states are well described by POT [3]. However, analysis of the photoabsorption spectra from a low-lying initial state, require Closed-orbit theory (COT) [4], a semiclassical description of a density of states weighted by a dipole matrix element. Originally devised for hydrogen, COT was later extended to singly excited non-hydrogenic ('Rydberg') atoms [4,5], accounting for the presence of the ionic core. It was found [5] that the core-scattering produces additional 'combination' orbits. Non-hydrogenic energy-level spectra, even in weak fields where the classical dynamics for hydrogen is near-integrable, were found to be significantly more complex, showing short-range level repulsion and a proliferation of spectral modulations, a behavior termed 'core-induced chaos'. Subsequently, the nearest neighbor spacings (NNS) distributions of non-hydrogenic atoms in the 'core-induced chaos' regime were shown in fact [7], to correspond to a distribution which was neither Wigner (chaotic), nor mixed phase-space, but close to a new generic intermediate class known as semi-Poisson [8]. These findings were investigated experimentally for h...