The U.S. stock market reached new highs on Tuesday as companies tied to the artificial intelligence sector continued to drive gains. The S&P 500 rose 0.1 percent to close at 7,609.78, the Dow Jones Industrial Average gained 228.91 points, or 0.4 percent, to finish at 51,307.79, and the Nasdaq composite increased slightly by 7.09 points to 27,093.90. All three indexes closed at record levels.
Technology and AI-related stocks were key contributors to the rally. Hewlett Packard Enterprise’s shares surged 19.5 percent following the release of quarterly earnings that substantially exceeded analysts' expectations. The company attributed its strong performance to heightened demand from customers building out AI infrastructure. Marvell Technology experienced an extraordinary 32.5 percent jump, marking its best trading day since its IPO in 2000, fueled by bullish remarks from Nvidia CEO Jensen Huang, who suggested that Marvell could join the ranks of trillion-dollar companies. Nvidia itself dipped 0.7 percent despite a market value surpassing $5 trillion.
Generac also climbed 5.7 percent after announcing a contract to supply backup power generators to a major unnamed hyperscale data center operator. Such "hyperscalers" are investing heavily in AI data centers to support what many see as the next transformative phase in the global economy.
Alphabet, a leading hyperscaler and parent company of Google, revealed plans to raise $80 billion through a stock offering intended to finance up to $190 billion in capital investments this year. The company forecasted a significant increase in spending next year as well, underscoring the scale of investment being poured into AI infrastructure. Alphabet’s shares declined 3.9 percent amid concerns over the sustainability of these expenditures and speculation about a potential AI investment bubble. The stock’s drop made it one of the largest drags on the S&P 500’s performance.
Market analysts have cautioned that the broader U.S. stock market might be approaching a pause following the S&P 500’s nine-week winning streak, the longest since 2023. This extended rally has been supported by strong earnings reports across various sectors and renewed optimism about a potential deal between the United States and Iran to reopen the Strait of Hormuz, a crucial shipping lane that could ease oil supply tensions.
In energy markets, Brent crude oil prices climbed 1.1 percent to settle at $96 per barrel, recovering some ground after last week’s declines but remaining well above pre-conflict levels near $70. Meanwhile, U.S. Treasury yields held relatively steady, with the 10-year yield slipping slightly to 4.45 percent after briefly spiking following data showing a higher-than-expected number of job postings in April, a possible indicator of ongoing labor market strength.