The S&P 500 set another record Tuesday, tipping above 7,600 for the first time, while crypto got kicked in the teeth. AI chipmakers carried the day: Marvell surged 32% on a Jensen Huang endorsement, HPE ripped 25% on a blowout earnings beat, and Alphabet announced an $80 billion capital raise to keep feeding the AI machine. Meanwhile, Bitcoin dropped below $70K and oil kept climbing on Iran tensions.
Market Snapshot
| INDEX | CLOSE | CHANGE |
|---|---|---|
| S&P 500 | 7,609.78 | +0.13% |
| Nasdaq | 27,093.90 | +0.03% |
| Dow Jones | 51,307.79 | +0.45% |
| Bitcoin | $67,468 | -3.50% |
| Ethereum | $1,976 | -2.17% |
What Moved Markets
Marvell got the Jensen Huang blessing. At Computex in Taipei, Nvidia’s CEO called Marvell Technology “the next trillion-dollar company.” The stock responded with a 32% single-day gain, its biggest ever. Nvidia recently committed $2 billion to Marvell, and Huang’s logic was specific: AI data centers run on disaggregated computing, and that architecture doesn’t work without the connectivity infrastructure Marvell builds. Whether that’s worth a trillion-dollar valuation is another question entirely.
HPE finally showed up. Hewlett Packard Enterprise surged 25% after posting Q2 revenue of $10.68 billion (up 40% year over year) and beating EPS estimates by $0.26. The company raised full-year guidance well above consensus, driven by a 148% jump in its Networking segment. This was the first time HPE meaningfully beat expectations since 2018. One good quarter doesn’t make a trend, but the AI infrastructure spending wave is clearly reaching beyond the usual suspects.
Alphabet is passing the hat for $80 billion. Google’s parent company announced a massive equity offering to fund AI compute buildout, including $30 billion in public offerings, a $40 billion at-the-market program, and a $10 billion private placement from Berkshire Hathaway. The stock dipped on dilution fears. When a company this profitable needs to raise outside capital at this scale, it tells you something about how enormous the AI spending commitments have become.
Oil keeps climbing on Iran. WTI crude settled at $93.76 (+1.7%) and Brent closed at $96.00 (+1.1%), both at one-week highs. The Iran situation remains the wildcard: Tehran is reviewing a U.S. ceasefire proposal, but most non-Iranian shipping through the Strait of Hormuz remains choked off. Until that resolves, oil stays elevated.
Worth Watching
ISM Services PMI drops today (June 3). After the manufacturing PMI kicked off the week, services data will tell us whether the consumer economy is holding up or starting to crack under $90+ oil.
May jobs report lands Friday (June 5). Consensus expects 85,000 new jobs with unemployment steady at 4.3%. A weak number could give the Fed room to cut at the June 16-17 meeting. A strong one probably keeps them on hold.
FOMC blackout period starts June 6. The next rate decision is June 17. Markets are watching whether the labor market or inflation data gives the Fed a reason to move.
Bottom Line
Equities keep grinding to records on the back of AI spending, but the gains are narrow and the risks are widening. Crypto is selling off, oil is elevated because of a real geopolitical crisis, and the jobs data this week could reshape rate expectations heading into the June FOMC. If you hold positions, the next three days matter more than the last three. Pay attention to the data, not the headlines about trillion-dollar predictions.
