New York, June 2, 2026, 11:10 EDT
Stocks in the U.S. hovered close to record highs Tuesday. A drop in Alphabet, after its $80 billion equity-raising plan, held back gains from another move higher in artificial-intelligence hardware stocks.
S&P 500 edged up 0.02% to 7,601.50, with the Nasdaq Composite adding 0.07% at 27,105.89. The Dow Jones Industrial Average fell 0.07% to 51,041.29, according to LSEG numbers on Reuters’ U.S. markets page. Reuters said both the S&P 500 and Nasdaq had slipped earlier after a string of record highs.
AI spending is back at the center of the rally, but gains are looking narrower. Investors are sticking with server, chip and data-center suppliers, but questions are swirling about how much money the largest tech firms will have to put up to keep things running. Alphabet turned into the swing name for the day.
Alphabet shares slid after the Google parent announced plans for $80 billion in equity offerings. That includes a $10 billion private placement to Berkshire Hathaway. The move is aimed at backing its AI infrastructure expansion. Back in April, Alphabet bumped its yearly capex outlook to the $180 billion-$190 billion range, according to Reuters.
“It confirms the insatiable demand that we’re seeing really across the board for AI,” Ryan Detrick, chief market strategist at Carson Group, told Reuters. “Every day it seems like a different company comes out with incredible signs that this wave of AI is alive and well.” Reuters
Hewlett Packard Enterprise rose sharply after it said stronger demand for AI servers means it may reach its long-term financial goals two years ahead of schedule. Reuters said if those gains hold, HPE could add around $17 billion to its market cap. Dell and Super Micro Computer remain the main comps for traders watching AI server stocks.
“The biggest takeaway from the quarter was that HPE is benefiting from the same pricing dynamic that has recently driven upside at Dell – customers are absorbing materially higher server prices with little evidence of demand destruction,” Morgan Stanley analysts wrote, per Reuters. Piper Sandler called 2024 “the year of refresh” for enterprise IT gear, AI upgrades and product updates. Reuters
Marvell Technology shot higher after Nvidia CEO Jensen Huang said at Computex in Taipei it could be the next “trillion-dollar company.” Reuters said Marvell jumped 22.5% to a record, lifting its market cap to $234 billion. Nvidia shares moved up too. Reuters
Job openings jumped by 731,000 to 7.618 million at the end of April, the Bureau of Labor Statistics said in its latest JOLTS report, marking the highest level since May 2024. But hiring dropped to 5.116 million. The data, seen as a signal for labor demand, came in the monthly Job Openings and Labor Turnover Survey.
Job openings went up, so bulls saw a sign the economy isn’t fading. But hiring was soft, leaving bears with ammo, too. It points to firms hanging back. Traders will care, with the May payrolls print coming Friday.
Fed rate risk still in focus. Cleveland Fed President Beth Hammack said it could be time for the central bank to act “soon” if inflation does not ease. For now, she thinks it’s reasonable to keep rates where they are. “Inflation is too high and is moving higher,” Hammack told Reuters. Reuters
Oil slipped and bonds held steady, leaving traders wary. Brent crude was last down a bit at $94.89 a barrel, according to Reuters market data. The U.S. 10-year Treasury yield stayed at 4.431%. That’s still high and made growth stocks look expensive.
But the risk is simple. If AI spending turns into dilution and more debt instead of profit, Alphabet’s drop could pull down other megacaps too. Hotter inflation, or a jump in energy prices from Middle East tensions, could also nudge the Federal Reserve toward a rate hike and pressure a market still priced for strong earnings and loose liquidity.
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