S&P 500, Nasdaq Close at Record Highs as Nvidia Leads AI-Driven Rally
U.S. stock markets hit fresh record highs on June 1, 2026, driven by Nvidia's launch of a new AI chip for personal computers and optimism around U.S.-Iran peace negotiations. The S&P 500 gained 0.26% and the Nasdaq rose 0.42%, with technology stocks leading the surge.
Record Market Close on AI Momentum
The S&P 500 rose on Monday, advancing 0.26% to close at 7,599.96, while the Nasdaq Composite gained 0.42% to close at 27,086.81, with all three major indexes reaching new all-time intraday highs and closed at records. Nvidia shares offered support to the broader market, climbing more than 6% after the company unveiled a new processor for personal computers.
Nvidia's PC Chip Signals AI Industry Shift
Jensen Huang, chief executive officer of Nvidia Corp., presented the RTX Spark Superchip at the Nvidia GTC conference in Taipei, Taiwan on Monday, saying "This reinvention of the computer is as big of a deal as the reinvention of the phone into what we now know as the smartphone," and noted that AI will run across all the new computers. Dell Technologies and HP Inc followed Nvidia higher, rising more than 10% and 8%, respectively.
Analyst Upgrades and Earnings Strength
D.A. Davidson on Monday added Nvidia to its top-pick stocks list, with Gil Luria, the firm's head of technology research, having a buy rating on the stock with a $300 price target implying around 42% upside of where shares finished last week. Dell's massive earnings beat last week helped cap a reporting season that featured S&P 500 firms reporting almost 29% annual earnings per share growth, the highest in more than four years and more than double what analysts had expected back on March 31.
Geopolitical Relief and Market Sentiment
The stock market continues to bet on some sort of a resolution to the war with Iran, with stocks ending the month of May at all-time highs on growing confidence that the Strait of Hormuz will reopen soon, as bond yields declined, oil prices retreated and the major stock averages rallied on hopes the Trump administration is nearing a peace deal.