[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.06%) is now down about 16 points this afternoon.

Gold futures settled $13.60 higher (+0.3%) at $4,519.90/oz, as a softer U.S. dollar and ongoing uncertainty surrounding U.S.-Iran negotiations supported safe-haven demand. Investors also remained cautious ahead of key U.S. labor market data later this week, which could provide further insight into the Federal Reserve's interest-rate outlook.

Meanwhile, the U.S. Dollar Index is up less than +0.1% to $99.28.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.23%) is in first place on Tuesday afternoon, up about 119 points.

A look inside the DJIA shows that Cisco (CSCO 127.58, +6.25, +5.15%), Caterpillar (CAT 903.52, +38.16, +4.41%), and Apple (AAPL 314.75, +8.44, +2.76%) are some of today's top gain getters.

Meanwhile, Salesforce (CRM 197.90, -11.70, -5.58%) underperforms.

The DJIA is now +6.52% higher year-to-date.

[BRIEFING.COM] After opening losses, the S&P 500 (+0.2%) and DJIA (+0.3%) are extending their push into record territory, while the Nasdaq Composite (+0.2%) holds a similar gain for the day. Strength has broadened from earlier levels, but technology stocks, and in particular, semiconductors, are once again providing leadership as the market awaits any updates on U.S.-Iran negotiations.

The top-weighted information technology sector (+0.7%) no longer holds the widest gain across S&P 500 sectors, as weakness in software names such as Intuit (INTU 323.48, -30.28, -8.56%) weighs against the rally in semiconductor stocks.

Alphabet's (GOOG 364.57, -8.01, -2.15%) stock is under pressure following its announcement of an $80 billion equity raise to accelerate AI infrastructure investments, though the market is treating the news as a meaningful positive for several AI supply chain and data center beneficiaries. Coherent (COHR 425.08, +62.18, +17.13%) and Lumentum (LITE 1028.23, +123.23, +13.62%) are among the best-performing S&P 500 components as a result.

Though not a member of the S&P 500, Marvell (MRVL 286.22, +66.79, +30.44%) is surging to record highs of its own after NVIDIA (NVDA 225.25, +0.89, +0.40%) CEO Jensen Huang delivered a rare and powerful endorsement at Computex in Taipei, calling Marvell the "next trillion-dollar company."

The PHLX Semiconductor Index is up 4.9%.

Additionally, Hewlett Packard Enterprise (HPE 54.16, +7.16, +15.23%) trades sharply higher after a beat-and-raise earnings report, with a record backlog highlighting the confidence in the durability of AI infrastructure spending.

Elsewhere, the utilities sector (+1.9%) outperforms as interest rates are more stable today after yesterday's oil-driven spike, while the materials sector (+0.9%) also reclaims some of its previous weakness.

The energy sector (+1.1%) is at its best levels of the session as oil drifts higher, with crude oil currently up $1.01 (+1.1%) to $93.17 per barrel. Geopolitical developments are relatively quiet following Monday's volatility.

As for today's laggards, Alphabet's weakness weighs on the communication services sector (-1.3%), while the health care (-1.1%), consumer discretionary (-0.4%), and consumer staples (-0.2%) sectors also move lower.

Overall, today's session reinforces the market's continued conviction in the AI infrastructure buildout, with strong gains across semiconductors, networking equipment, and optical component names. Between Alphabet's increased investment plans and NVIDIA CEO Jensen Huang's endorsement of key suppliers, investors continue to view AI-related spending as a durable growth driver, helping fuel another push toward record highs for the major averages.

Reviewing today's data:

• April JOLTs - Job Openings 7.618 mln; Prior was revised to 6.887 mln from 6.866 mln

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (+0.2%) are off their session highs, but remain in modestly positive territory early this afternoon.

Intuit (INTU 322.15, -31.61, -8.93%) is one of the worst-performing S&P 500 components today after Goldman Sachs downgraded the stock to Sell from Neutral, with 23% downside to its 12-month price target of $276. The impetus for the downgrade was intensifying tax competition and earnings risk.

Other packaged software names such as ServiceNow (NOW 126.28, -9.58, -7.05%) and Workday (WDAY 147.23, -10.00, -6.36%) are also laggards, and the IGV is down %.

[BRIEFING.COM] The major averages remain near record highs at midday.

Marvell (MRVL 282.89, +63.46, +28.92%) is surging to record highs of its own after NVIDIA (NVDA 225.52, +1.16, +0.52%) CEO Jensen Huang delivered a rare and powerful endorsement at Computex in Taipei, calling Marvell the "next trillion-dollar company." Huang framed Marvell as essential to the AI buildout because the bottlenecks are shifting from raw compute to memory, data movement, and connectivity across massive data centers. He also highlighted the move from copper cabling to optical communications and silicon photonics, saying Marvell's leadership in optical networking chips and custom AI accelerators makes it a critical piece of the AI stack.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.3%), and DJIA (+0.3%) have steadily improved from their opening weakness, with the S&P 500 and DJIA notching fresh all-time highs.

Similar to yesterday's record push, the information technology sector (+0.8%) is making an important contribution to the index-level gains. Apple (AAPL 312.61, +6.30, +2.06%) is a mega-cap standout, while NVIDIA (NVDA 226.03, +1.67, +0.74%) extends yesterday's move higher, and Hewlett Packard Enterprise (HPE 57.87, +10.87, +23.13%) rockets higher after earnings.

However, Microsoft (MSFT 444.31, -16.21, -3.52%) and other software stocks are under considerable pressure following yesterday's rally.

Mega-cap names outside of the technology sector are posting mixed performances, with Alphabet (GOOG 365.08, -7.50, -2.01%) a notable laggard after announcing an $80 billion equity capital raise to fund the rapid expansion of its AI infrastructure footprint. The move weighs on the communication services sector (-1.2%), though both the stock and the sector are well off their session lows.

Elsewhere, the defensive health care (-1.0%) and consumer staples (-0.4%) sectors are under pressure, while the broader market is largely improved after yesterday's weakness.

Outside of the S&P 500, the Russell 2000 (+1.0%) and S&P Mid Cap 400 (+0.8%) are outperforming.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.2%) are now in modestly positive territory as losses across the broader market have narrowed.

In particular, the communication services sector (-0.7%) has reclaimed over half of its earlier weakness as Alphabet (GOOG 369.40, -3.18, -0.85%) rises from session lows. 

The stock moved lower after announcing an $80 billion equity capital raise to fund the rapid expansion of its AI infrastructure footprint. The financing package includes a $10 billion Berkshire Hathaway Berkshire Hathaway Inc. (BRK-B 471.44, +1.15, +0.24%) private placement, a $30 billion underwritten offering, and a $40 billion at-the-market program designed to help manage dilution.

Alphabet's weakness appears driven more by concerns around dilution and unprecedented capital spending than any deterioration in demand. In fact, Google Cloud's 63% growth in Q1 and $460 bln backlog suggest AI-related demand remains exceptionally strong. The financing structure appears carefully designed, balancing strategic capital from Berkshire Hathaway, delayed dilution through mandatory convertibles, and gradual share issuance through the ATM program. While the move marks a significant departure from Alphabet's buyback-focused capital allocation strategy, it also reflects the reality that AI leadership increasingly requires industrial-scale infrastructure investments.

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (+0.1%), and DJIA (-0.2%) continue to hover near their flatlines. 

Hewlett Packard Enterprise (HPE 59.14, +12.14, +25.83%) is surging to fresh record highs after delivering a blowout fiscal Q2 earnings report that handily topped expectations on every metric, while also issuing guidance well above consensus and raising its full-year outlook by over 40%. Shares are trading near $60, up roughly $13 on the session, as investors respond to what management described as "record-breaking results" driven by explosive AI infrastructure demand and the accelerating integration of Juniper Networks -- a combination that has pulled HPE two full years ahead of its original FY28 long-term financial targets.

This was an emphatic statement of intent from HPE. What might have looked like an AI-cycle beneficiary a year ago is increasingly presenting itself as a structurally transformed infrastructure company. The Juniper acquisition - described by CEO Antonio Neri as "a home run" - has proven to be a genuine value-creation catalyst, with integration milestones, synergy realization, and cross-portfolio revenue opportunities all running ahead of schedule. The magnitude of the guidance raise is striking: lifting the FY26 EPS midpoint by roughly 42% and revenue growth by more than 10 percentage points is not a modest tweak, it reflects materially improved demand visibility, record backlog, and confidence in the durability of AI infrastructure spending.

[BRIEFING.COM] The S&P 500 (-0.1%), Nasdaq Composite (flat), and DJIA (-0.2%) are little changed this morning as stocks opened to mixed strength.

Five S&P 500 sectors trade higher, with the top-weighted information technology sector (+0.9%) once again leading the advance as NVIDIA (NVDA 230.11, +5.75, +2.56%) continues to move higher while Hewlett Packard Enterprise (HPE 58.96, +11.96, +25.45%) surges after reporting earnings. However, Microsoft (MSFT 445.63, -14.89, -3.23%) and other software names are under pressure, with the iShares GS Software ETF (-3.8%) giving back a chunk of yesterday's gains.

Mega-cap weakness elsewhere weighs on the communication services (-2.2%) and consumer discretionary (-1.4%) sectors, with Alphabet (GOOG 361.75, -10.83, -2.91%) moving lower after proposing an $80 billion equity capital raise to expand AI infrastructure and compute.

Just released, the April JOLTS report saw 7.618 million job openings added, up from the upwardly revised prior level of 6.887 million (from 6.866 million).

The stock market remains poised for a modestly lower opening this morning, though there will be some sharp opening gains across select AI infrastructure names after the latest batch of earnings reports.

On the policy front, Cleveland Fed President Beth Hammack (voting FOMC member) gave a speech that highlights the need to return to 2% inflation, noting that the picture for inflation "is not encouraging."

The S&P 500 futures currently trade 14 points below fair value.

Equity indices in the Asia-Pacific region closed Tuesday's session on a relatively mixed note, largely brushing off concerns about Iran and stubbornly high energy prices. Hong Kong's Hang Seng (+2.5%) was the standout winner, bolstered by AI enthusiasm and optimism regarding the property market. The AI trade has been pushed along by the start of Computex 2026 in Taiwan, which will run June 2-5 and will key on AI's evolving capabilities. Chatter about a possible rate hike by the Bank of Korea was ignited by a hotter-than-expected CPI report for May that featured the highest annualized rate (3.1%) since early 2024. The Bank of Korea is expecting the inflation rate to maintain a 3-handle for some time. Notably, the PBOC's open market operations included a fund injection of just CNY200 mln, which was the smallest OMO since 2015.

• In economic data:
  • Japan's May Monetary Base -12.2% yr/yr (expected -9.5%; last -11.3%)
  • Hong Kong's April Retail Sales 8.6% yr/yr (last 12.8%)
  • South Korea's May CPI 0.5% m/m (expected 0.3%; last 0.5%) and 3.1% yr/yr (expected 3.0%; last 2.6%)
  • Australia's Q1 Current Account Balance -AUD27.1 bln (expected -AUD23.1 bln; last -AUD23.0 bln); April Building Approvals -3.4% m/m (expected -1.5%; last -10.5%); Q1 Business Inventories 0.5% (last -0.1%)

---Equity Markets---

• Japan's Nikkei: -0.3%
• Hong Kong's Hang Seng: +2.5%
• China's Shanghai Composite: +0.4%
• India's Sensex: +0.5%
• South Korea's Kospi: +0.2%
• Australia's ASX All Ordinaries: flat

Major European indices are trading with some positive energy ahead of the U.S. open, aided by sliding energy prices and ongoing enthusiasm about AI-related stocks. They have clearly brushed off worries about inflation as a trading catalyst, as this morning's data showed CPI running at 3.2% yr/yr and core CPI at 2.5%. Those readings are reportedly solidifying expectations of a rate hike by the ECB.  Higher energy costs were the main driver of CPI inflation. There are reports that the European Commission is discussing plans to allow countries more fiscal flexibility as they deal with attempts to mitigate the impact of higher energy costs. Notably, sovereign bond yields are lower in the wake of the inflation report.

• In economic data:
  • Eurozone's May CPI 0.1% m/m (last 1.0%) and 3.2% yr/yr (expected 3.2%; last 3.0%); May core CPI 0.3% m/m (last 0.9%) and 2.5% yr/yr (expected 2.4%; last 2.2%)
  • UK's April Mortgage Approvals 65,940 (expected 62,000; last 63,980); BoE Consumer Credit GBP1.859 bln (expected GBP1.700 bln; last GBP1.904 bln)
  • Spain's May Unemployment Change -36,300 (expected -56,800; last -62,700)

---Equity Markets---

• STOXX Europe 600: +0.5%
• Germany's DAX: +0.6%
• U.K.'s FTSE 100: +0.1%
• France's CAC 40: +0.5%
• Italy's FTSE MIB: +0.9%
• Spain's IBEX 35: +0.6%

The S&P 500 futures currently trade 12 points below fair value.

On the trade front, the White House adjusted tariffs on agricultural equipment, including combines and harvesters, lowering the rate to 15% from 25%, while also making changes to certain metals tariffs. Separately, the U.S. Trade Representative proposed an additional 25% tariff on imports from Brazil, excluding goods already subject to Section 232 tariffs.

Equity futures point to a lower opening this morning after the major averages set fresh record highs in Monday's action. Leadership was narrowly concentrated across tech names, while the broader market moved lower after reports that Iran stopped messaging the U.S. in protest of Israel's strikes in Lebanon.

Axios reports that President Trump lashed out at Israeli Prime Minister Benjamin Netanyahu over Israel's war in Lebanon, though the current geopolitical situation remains relatively unchanged from yesterday

Meanwhile, tech names are poised to extend recent gains, with Hewlett Packard Enterprise (HPE 59.64, +12.64, +26.9%) being the latest AI-infrastructure name to rocket higher after a blowout earnings report.

On the data front, the market will receive the April JOLTS job openings report at 10:00 a.m.

In corporate news:

• Alphabet (GOOG 362.25, -10.33, -2.8%) proposed an $80 billion equity capital raise to expand AI infrastructure and compute.
• Hewlett Packard Enterprise (HPE 59.64, +12.64, +26.9%) beat EPS expectations by $0.26, beat revenue expectations, guided Q# and FY26 EPS and revenues above consensus.
• NVIDIA (NVDA 227.70, +2.84, +1.3%) CEO Jensen Huang says Marvell (MRVL 263.50, +44.07, +19.7%) is the next trillion-dollar company, according to Reuters.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region closed Tuesday's session on a relatively mixed note, largely brushing off concerns about Iran and stubbornly high energy prices. Japan's Nikkei: -0.3%, Hong Kong's Hang Seng: +2.5%, China's Shanghai Composite: +0.4%, India's Sensex: +0.5%, South Korea's Kospi: +0.2%, Australia's ASX All Ordinaries: flat.

In news:

• Hong Kong's Hang Seng (+2.5%) was the standout winner, bolstered by AI enthusiasm and optimism regarding the property market.
• The AI trade has been pushed along by the start of Computex 2026 in Taiwan, which will run June 2-5 and will key on AI's evolving capabilities.
• Chatter about a possible rate hike by the Bank of Korea was ignited by a hotter-than-expected CPI report for May that featured the highest annualized rate (3.1%) since early 2024.
• The Bank of Korea is expecting the inflation rate to maintain a 3-handle for some time.
• Notably, the PBOC's open market operations included a fund injection of just CNY200 mln, which was the smallest OMO since 2015.

In economic data:

• Japan's May Monetary Base -12.2% yr/yr (expected -9.5%; last -11.3%)
• Hong Kong's April Retail Sales 8.6% yr/yr (last 12.8%)
• South Korea's May CPI 0.5% m/m (expected 0.3%; last 0.5%) and 3.1% yr/yr (expected 3.0%; last 2.6%)
• Australia's Q1 Current Account Balance -AUD27.1 bln (expected -AUD23.1 bln; last -AUD23.0 bln); April Building Approvals -3.4% m/m (expected -1.5%; last -10.5%); Q1 Business Inventories 0.5% (last -0.1%)

Major European indices are trading with some positive energy ahead of the U.S. open, aided by sliding energy prices and ongoing enthusiasm about AI-related stocks. STOXX Europe 600: +0.7%, Germany's DAX: +1.0%, U.K.'s FTSE 100: +0.4%, France's CAC 40: +0.8%, Italy's FTSE MIB: +1.2%, Spain's IBEX 35: +0.8%.

In news:

• They have clearly brushed off worries about inflation as a trading catalyst, as this morning's data showed CPI running at 3.2% yr/yr and core CPI at 2.5%. Those readings are reportedly solidifying expectations of a rate hike by the ECB.
• Higher energy costs were the main driver of CPI inflation.
• There are reports that the European Commission is discussing plans to allow countries more fiscal flexibility as they deal with attempts to mitigate the impact of higher energy costs.
• Notably, sovereign bond yields are lower in the wake of the inflation report.

[BRIEFING.COM] The major averages closed higher on Monday, with the S&P 500 (+0.3%), Nasdaq Composite (+0.4%), and DJIA (+0.1%) all setting fresh record highs during the session as investors navigated a sharp jump in oil prices and another round of AI-driven technology leadership.

Early trading was shaped by a surge in crude oil following reports that Iran had stopped messaging the U.S. in protest of Israel's strikes in Lebanon. Oil prices remained elevated throughout the session, although they pared their worst levels after President Trump stated on Truth Social that discussions with Iran were continuing "at a rapid pace." WTI crude oil futures ultimately settled up $4.77 (+5.5%) at $92.19 per barrel.

Despite the gains in the major averages, market participation was relatively narrow. The information technology sector (+2.5%) was the clear leader and provided much of the market's upside support. NVIDIA (NVDA 224.36, +13.22, +6.26%) and Microsoft (MSFT 460.52, +10.28, +2.28%) remained focal points after announcing a partnership to develop a secure Windows platform for on-device AI agents, while Dell (DELL 466.02, +45.11, +10.72%) also benefited from the news.

Elsewhere in the sector software stocks extended their recent momentum as well, with the iShares Expanded Tech-Software Sector ETF (IGV) jumping 5.9%.

Outside of technology and energy (+1.9%) sectors, the tone was less encouraging. Rising energy prices pressured several oil- and rate-sensitive areas of the market, limiting participation beneath the surface. The consumer discretionary (-2.6%) and utilities (-3.1%) sectors finished sharply lower, with nine total S&P 500 sectors posting a loss.

Broader market measures generally lagged the major averages despite the record highs, with the Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.1%) retreating modestly.

Corporate news contributed to several notable individual stock moves. MGM Resorts (MGM 50.69, +7.02, +16.08%) surged after confirming it received an acquisition proposal from IAC, while Taylor Morrison Home (TMHC 71.55, +13.05, +22.31%) rallied following Berkshire Hathaway Inc.'s (BRK-B 470.28, -4.21, -0.89%) agreement to acquire the homebuilder in an $8.5 billion all-cash transaction.

Separately, FedEx (FDX 338.49, -73.26, -17.79%) completed the spin-off of FedEx Freight (FDXF 149.53, -10.84, -6.76%), which began trading as an independent public company.

In conclusion, record highs across the major averages masked another session of narrow leadership, as enthusiasm surrounding AI-related technology stocks proved strong enough to overcome the headwinds created by higher oil prices and lingering geopolitical uncertainty.

U.S. Treasuries started June with losses in most tenors, though the market put up a fight, finishing the session closer to the day's opening levels than session lows. The 2-year note yield settled up four basis points to 4.05%, and the 10-year note yield settled up two basis points to 4.48%. 

Reviewing today's data:

• May S&P Global U.S. Manufacturing PMI - Final 55.1 (May Prelim was 55.3)
• April Construction Spending: 0.4% vs Briefing.com consensus of 0.3%; March was revised to 0.2% from 0.6%
  • The key takeaway from the report is that it included a sharp downward revision to growth rate from March (0.2%), resulting in a weak report overall. New single-family construction spending increased a solid 1.4% in April but was still down 2.9% year-over-year.
• May ISM Manufacturing Index 54.0% vs Briefing.com consensus of 53.1%; April was 52.7
  • The key takeaway from the report is that it continued showing some stagflationary elements for the second consecutive month, as employment remained in contraction-though at a slower rate-while the prices index only dipped slightly from its sharpest increase since early 2022.