TLDR
- The Dow Jones, S&P 500 and Nasdaq were on track for their fifth straight record close, their longest streak since February 2017.
- Alphabet shares fell after the company announced plans to raise $80 billion for artificial intelligence infrastructure.
- Shares of Hewlett Packard Enterprise rose more than 20% after posting a record quarter tied to the growth of artificial intelligence data centers.
- The JOLTS report showed 7.6 million job openings in April, much higher than estimates of 7.6 million.
- Middle East peace talks between the United States and Iran have continued, with President Trump saying negotiations are moving at a “rapid pace.”
US stocks rose on Tuesday, June 2, with all three major indexes heading towards their fifth straight record close. This would mark the longest winning streak since February 15, 2017, according to Dow Jones market data.
The Dow Jones Industrial Average rose 0.3%, adding about 175 points. The S&P 500 rose 0.2%, and the Nasdaq Composite rose 0.3%. Caterpillar, Apple, Goldman Sachs and JP Morgan were among the biggest contributors to the Dow’s gains.
Alphabet influences AI spending concerns
alphabet Shares fell sharply at the open after the company announced that it plans to raise $80 billion by issuing shares to fund the construction of artificial intelligence infrastructure. This announcement raised concerns among investors about the volume of spending in the technology sector.
The stock trimmed some of its losses during the session, reducing its decline to about 2.1%. It was still on track to achieve one of the largest single-day declines in market value ever.
The broader technology sector showed mixed results. The iShares Semiconductor ETF rose 4.8%, while the iShares Expanded Tech-Software Sector ETF fell 4%. The Roundhill Magnificent Seven ETF finished the session almost flat.
Hewlett Packard Enterprise jumps on AI data center growth
While the alphabet affected feelings, Hewlett-Packard Company It delivered a strong earnings report, reporting a record quarter driven by expansion of its AI data center. Shares jumped more than 20% after the news.
Other earnings results were mixed. Dollar General beat EPS estimates but missed on revenue. Victoria’s Secret has exceeded expectations on both the bottom line and the top. Palo Alto Networks and Ulta Beauty are scheduled to report results later in the session.
Jobs data and Middle East peace talks in focus
The JOLTS report released on Tuesday showed 7.6 million job openings in April. That was well above Wall Street estimates of 6.89 million. The report is the first of several employment releases this week, capped by Friday’s May jobs report.
Geopolitical developments also affected trade. President Trump announced that Israel and Hezbollah had agreed to stop attacks, and said that US-Iranian talks were continuing “at a rapid pace.” Oil prices They fell in response, with Brent futures falling 0.3% to trade near $94 a barrel and WTI falling below $92.
Sentiment improved during the morning as jobs data and ceasefire news provided support to stocks.
A slight majority of S&P 500 stocks were trading higher by midday, after an earlier period of weakness was offset by strength in semiconductor stocks.
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