S&P 500 Closes Above 7,600 as AI Infrastructure Names Take Over Again

Tuesday's session was another record day on Wall Street, but the real story was the market's rotation back into AI infrastructure rather than a broad melt-up. The S&P 500 rose 0.13% to 7,609.78, its first close above 7,600. The Dow Jones Industrial Average added 228.91 points, or 0.45%, to 51,307.79, and the Nasdaq Composite edged up 0.03% to 27,093.90. All three benchmarks set fresh closing highs, with the Dow also tagging another intraday record, according to CNBC.

The lead angle matters. This wasn't another oil-shock day and it wasn't simply a quiet record close. The move was driven by a renewed conviction that AI capex is still accelerating, even after weeks of gains. Reuters reported that strong results from Hewlett Packard Enterprise and fresh optimism around AI buildout spending helped push the Dow and S&P 500 to new peaks, while the Philadelphia Semiconductor Index jumped nearly 6% Reuters via Kitco.

Marvell Explodes Higher, HPE Delivers the Day's Cleanest Earnings Beat

Marvell Technology was the standout mover. Shares surged 32% after Nvidia CEO Jensen Huang said at Computex that Marvell could become the next trillion-dollar company, a comment that lit a fire under the entire chip complex. CNBC said the move helped keep the broader market afloat even as some mega-cap software names weakened CNBC. Reuters separately noted that Marvell's rally added more than 26% at one point and pushed its market value above $240 billion Reuters via Kitco.

Hewlett Packard Enterprise was the other key catalyst. The stock jumped more than 19% by the close after issuing a stronger outlook and raising full-year guidance. Reuters said HPE had been on track for a record one-day percentage gain after pulling forward long-term financial targets by two years Reuters via Kitco. For traders, that matters because it reinforces the idea that AI demand is spreading beyond the usual hyperscaler winners and into servers, networking and connectivity suppliers.

Not every large-cap tech name joined the party. Alphabet fell almost 4% after unveiling plans to raise $80 billion through stock sales to fund its AI infrastructure push, including a $10 billion investment from Berkshire Hathaway, according to CNBC. Reuters said the deal weighed on the communications services sector even as it reinforced the market's broader belief that AI spending remains insatiable Reuters via Kitco. Software was softer too, with Reuters citing declines of 6% to 10% in ServiceNow, Salesforce and Intuit, while Microsoft dropped 3.7% Reuters via Kitco.

Treasuries Stay Elevated as JOLTS Keeps the Fed in Play

Bond yields remain a constraint even if equities are ignoring them for now. The 10-year Treasury yield closed around 4.45% on June 2 and moved back up near 4.49% early Wednesday, according to Trading Economics. CNBC said yields were edging higher as traders monitored the Iran conflict and waited for more economic data CNBC.

The macro driver on Tuesday was the April JOLTS report. Job openings rose by 731,000 to 7.6 million, well above expectations for 6.8 million and the highest level since May 2024, while hiring slowed, according to CNBC. Reuters, in its gold market coverage, also highlighted the stronger job openings data as a key release ahead of Wednesday's ADP report and Friday's payrolls number Reuters via Kitco.

The takeaway for rates traders is straightforward: labor demand still looks firm enough to keep the Fed cautious. Elevated oil prices are only adding to that higher-for-longer risk. If ADP, ISM services and Friday's nonfarm payrolls also come in hot, the market will have to price a less dovish path again.

Oil Holds Near $96 Brent as Iran Risk Keeps the Inflation Trade Alive

Crude stayed elevated, though Tuesday's move was smaller than Monday's jump. West Texas Intermediate settled up 1.74% at $93.76 a barrel, while Brent rose more than 1% to close at $96, according to CNBC. Reuters reported that oil climbed about 1% to a one-week high as the market waited for developments in the Iran war and Tehran reviewed a proposed agreement with Washington Reuters via Yahoo Finance.

That geopolitical backdrop is still the biggest macro wild card. CNBC noted that Iranian media had said negotiators would stop exchanging messages with the U.S. through intermediaries and that Iran would move to fully block the Strait of Hormuz CNBC. By early Wednesday, Reuters said oil was pushing higher again after renewed hostilities, with Brent at $97.05 and WTI at $94.77 in early trade Reuters via AOL.

For equities, that means the market is still balancing two opposing forces: AI-fueled earnings optimism on one side and an energy-driven inflation shock on the other. So far, stocks are choosing growth. But if crude pushes decisively back toward $100, that trade gets harder to sustain.

Gold Firms, Crypto Mixed as Traders Hedge Event Risk

Gold was modestly stronger on Tuesday, rising 0.5% to $4,504.36 an ounce, while U.S. gold futures gained 0.6% to $4,534, according to Reuters via Kitco. Reuters said the metal was being pulled in opposite directions by Middle East risk on one hand and higher-rate expectations on the other. That tension has made bullion less of a clean safe-haven trade than usual.

Crypto was not the main market driver, but it's worth noting the divergence. Bitcoin was around $70,700 on CoinMarketCap's latest reading, while Ethereum was near $2,000 and little changed over 24 hours CoinMarketCap CoinMarketCap. The move doesn't look large enough to shift broader risk sentiment yet, especially compared with the much bigger swings in semis, oil and rates.

Today's Setup: Data Will Decide Whether the Rally Broadens or Stalls

Wednesday's calendar is much more consequential than Tuesday's. Traders are looking at the ADP private payrolls report, ISM services, factory orders, weekly crude inventory data and the Fed's Beige Book. Saxo flagged all of those as the day's main macro catalysts, with Friday's jobs report still the week's biggest scheduled event Saxo Bank. The Federal Reserve confirms that the Beige Book is due as part of its regular policy cycle Federal Reserve.

The actionable point is this: if labor and services data stay firm while oil remains pinned near the mid-$90s, expect another push higher in yields and a tougher test for the parts of the market that aren't directly tied to AI spending. If the data cools, that would give the rally room to broaden beyond semis and hardware.

What to Watch Today

ADP private payrolls for May, after April JOLTS showed job openings jumping to 7.6 million.
ISM services and factory orders for a read on whether growth is holding up outside manufacturing.
Fed Beige Book for anecdotal evidence on pricing pressure, labor tightness and energy pass-through.
Crude inventories and any headlines on Iran, the Strait of Hormuz and U.S.-Iran diplomacy.
Whether the 10-year Treasury yield breaks above 4.50%, which would matter for high-duration tech.
Follow-through in Marvell, HPE and the broader semiconductor complex after Tuesday's near-6% jump in the SOX index.
Any sign that weakness in Alphabet, Microsoft and large-cap software starts to spill into the broader Nasdaq.