Dow, S&P 500, and Nasdaq Head for Fifth Straight Record Close on Tuesday

TLDR

• The Dow, S&P 500, and Nasdaq were on pace for a fifth straight record close, their longest streak since February 2017.
• Alphabet shares fell after the company announced plans to raise $80 billion for AI infrastructure.
• Hewlett Packard Enterprise surged over 20% after reporting a record quarter tied to AI data center growth.
• The JOLTS report showed 7.6 million job openings in April, well above the 7.6 million estimate.
• Middle East peace talks between the US and Iran continued, with President Trump saying negotiations were moving “at a rapid pace.”

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US stocks edged higher on Tuesday, June 2, with all three major indexes on track for a fifth straight record close. That would mark their longest winning streak since February 15, 2017, according to Dow Jones Market Data.

The Dow Jones Industrial Average gained 0.3%, adding around 175 points. The S&P 500 rose 0.2%, and the Nasdaq Composite climbed 0.3%. Caterpillar, Apple, Goldman Sachs, and JPMorgan were among the biggest contributors to the Dow’s gains.

Alphabet Drags on AI Spending Concerns

Alphabet shares fell sharply at the open after the company announced it plans to raise $80 billion through a stock issuance to fund its AI infrastructure buildout. The announcement sparked concerns among investors about the scale of spending across the tech sector.

The stock pared some of its losses through the session, trimming its decline to around 2.1%. It was still on course for one of its largest single-day drops in market cap on record.

The broader tech sector showed mixed results. The iShares Semiconductor ETF gained 4.8%, while the iShares Expanded Tech-Software Sector ETF fell 4%. The Roundhill Magnificent Seven ETF ended the session roughly flat.

Hewlett Packard Enterprise Jumps on AI Data Center Growth

While Alphabet weighed on sentiment, Hewlett Packard Enterprise delivered a strong earnings report, posting a record quarter driven by its AI data center expansion. Shares jumped more than 20% on the news.

Other earnings results were mixed. Dollar General beat estimates on earnings per share but missed on revenue. Victoria’s Secret beat expectations on both the top and bottom lines. Palo Alto Networks and Ulta Beauty were scheduled to report results later in the session.

Jobs Data and Middle East Peace Talks in Focus

The JOLTS report released Tuesday showed 7.6 million job openings in April. That came in 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 influenced trading. President Trump announced that Israel and Hezbollah had agreed to stop attacks, and said US-Iran talks were continuing “at a rapid pace.” Oil prices eased in response, with Brent crude futures falling 0.3% to trade near $94 a barrel and West Texas Intermediate dipping below $92.

Sentiment improved through the morning as both the jobs data and ceasefire news provided support for equities.

A slight majority of S&P 500 stocks were trading higher by midday, after an earlier period of weak breadth was offset by strength in semiconductor stocks.