The three major U.S. stock indexes closed at fresh record highs Tuesday as optimism over artificial intelligence (AI) continued to lift markets.
The Dow Jones Industrial Average rose 0.45% to 51,307.79. The Standard & Poor's 500 climbed 0.13% to 7,609.78, breaking through the 7,600 mark. The Nasdaq edged up 0.03% to 27,093.90. The S&P 500 and Nasdaq extended their winning streaks to nine consecutive sessions.
Semiconductor stocks rallied sharply. The Philadelphia Semiconductor Index jumped about 6%, while Marvell Technology, a network chip designer that Nvidia CEO Jensen Huang praised as "a candidate to be the next trillion-dollar company," soared 32.5%. In contrast, Google parent Alphabet fell about 4% after announcing a $80 billion rights offering to fund AI infrastructure investments.
Veteran strategist Louis Navellier told Bloomberg that "tech stocks continue to lead the market," adding there is room for further gains if issues with Iran are resolved. David Krakauer, vice president of portfolio management at Mercer Advisors, told CNBC that "the market is holding up well," adding, "Everyone is still hoping for some kind of deal with Iran, but overall, things are quite stable."
The U.S. labor market showed resilience. According to the Job Openings and Labor Turnover Survey (JOLTS) for April released by the U.S. Department of Labor on the 2nd, job openings totaled 7.618 million, far exceeding market expectations of 6.866 million. This was the highest level in roughly two years since May 2024.
Bret Kenwell of eToro Securities said, "The labor market is still showing solid strength," adding, "Energy prices that surged in the first quarter due to geopolitical factors are expected to decline, and inflation in the second half could ease while the Federal Reserve maintains its rate freeze. Combined with corporate earnings outlooks, this could drive stock prices higher." His view is that if oil prices, which spiked in the first quarter, stabilize from the second quarter, overall inflation will moderate while corporate earnings improve, potentially fueling further gains in stocks. Goldman Sachs CEO David Solomon told the Economic Club of New York that "this is a moment when greed far outweighs fear."
Oil prices edged higher. Brent crude futures for August delivery settled at $96 per barrel, up 1.1%, while West Texas Intermediate (WTI) for July delivery rose 1.7% to $93.76. Mixed signals emerged regarding ceasefire negotiations. Iran's hardline-leaning Fars news agency reported that the United States and Iran are not currently exchanging messages for memorandum of understanding (MOU) talks on a truce, while Mehr news agency, citing a source on the negotiating team handling U.S. talks, said, "The final text is still being discussed in Tehran, and no response has been sent yet."
