US Stock Market Sets New Records; S&P 500 Clears 7,600 Amid Tech Rally and Geopolitical Tensions
The S&P 500 hit a record close above 7,600, driven by a powerful surge in AI-related chip stocks, even as Middle East geopolitical tensions threaten oil prices and inflation concerns linger.
Record Close Powered by AI Chipmakers
US job openings surged to a near two-year high while the S&P 500 cleared 7,600 for the first time, with Marvell up 33% on Nvidia CEO comments. The S&P 500 ticked up to a record close after reaching a new all-time high on Tuesday as traders monitored the latest U.S.-Iran developments as well as moves in major tech names. The broad-based index advanced 0.13% to end at 7,609.78 for its first close above the 7,600 threshold, while the Dow Jones Industrial Average gained 228.91 points, or 0.45%, to 51,307.79.
Tech Surge Overshadows War Concerns
Today, June 2, 2026, a powerful AI-chip surge sent U.S. stocks to fresh records even as Alphabet slipped on a huge stock sale plan. Marvell Technology — Shares surged 25% after Nvidia CEO Jensen Huang said Marvell could be the next trillion dollar company. Hewlett Packard Enterprise — The information technology stock surged 25% after Hewlett Packard posted current-quarter earnings and revenue guidance that topped analysts' estimates. Alphabet weighed on the S&P 500, with shares down almost 4% after the company said it would raise $80 billion from stock sales to fund its artificial intelligence buildout.
AI Capital Spending Drives Earnings Growth
AI investment is expected to drive roughly 40% of S&P 500 earnings growth this year, with the largest cloud computing companies planning to spend an estimated $670 billion in 2026. Earnings Deliver the Strongest Margin Print on Record: Q1 profits grew 28.6%, more than double the 13.1% expected at quarter-end and the highest pace since Q4 2021. FactSet's blended net profit margin hit 14.8%, a record since tracking began in 2009.
Broader Market Divergence Risks
The S&P 500 Index rose 16% cumulatively in April and May, a two-month run matched only four times in history. Looking at those times, the index was up by a median of 17% six months later, The Wall Street Journal said. However, concentration remains high, with just a few names driving the rally, and geopolitical uncertainty continues to pose downside risks to the market outlook.