AI-Chip Rally Powers S&P 500, Nasdaq 100, Dow To Fresh Records: Stock Market Today
U.S. stocks nudged to fresh record highs by midday Tuesday as a renewed surge across semiconductor and AI-infrastructure names offset a lingering standoff between Washington and Tehran that kept crude oil firm.
• Marvell Technology stock is at critical resistance. Why are MRVL shares at highs?
The S&P 500, Nasdaq 100 and Dow all pared earlier losses to trade above the flatline, with chip leaders doing the heavy lifting.
The S&P 500 added 0.2% to 7,614, and the Dow Jones Industrial Average rose 0.2%, or about 76 points, to 51,155.
The Nasdaq 100 outperformed with a 0.4% gain to 30,649, powered by the chip complex.
The small-cap Russell 2000 outpaced its large-cap peers, climbing 0.8% to 2,929.
The standout mover was Marvell Technology Inc. (NASDAQ:MRVL), which soared 20% after Nvidia CEO Jensen Huang called the data center chip designer “the next trillion-dollar company” during an appearance at Computex in Taipei; Nvidia has also committed a $2 billion investment in the firm.
Hewlett Packard Enterprise Co. (NYSE:HPE) surged nearly 30% after fiscal second-quarter revenue jumped 40% to a record $10.68 billion and adjusted EPS of $0.79 beat estimates by 26 cents with management lifting full-year adjusted EPS guidance to $3.35-$3.45 from $2.30-$2.50 on $1.8 billion in new AI systems orders.
Tuesday’s Performance In Major U.S. Indices
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,613.96 | +0.2% |
| Dow Jones | 51,155.31 | +0.2% |
| Nasdaq 100 | 30,648.63 | +0.4% |
| Russell 2000 | 2,928.68 | +0.8% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) gained 0.2%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) rose 0.2%.
- The Invesco QQQ Trust (NASDAQ:QQQ) climbed 0.4%.
- The iShares Russell 2000 ETF (NYSE:IWM) rallied 0.8%.
Optical Networking Roars, Software Stocks Pullback
Huang’s emphasis on the networking bottleneck between GPU racks sent optical-component makers soaring.
Coherent Corp. (NYSE:COHR) climbed 16.4%, helped by an analyst price-target hike to $400 from $365 on stronger 800G and 1.6T transceiver volumes, while Corning Inc. (NYSE:GLW) rose 13.4% and Lumentum Holdings Inc. (NASDAQ:LITE) gained 13.3% — all riding the AI data-center connectivity theme rather than any single company catalyst.
Broadcom Inc. (NASDAQ:AVGO) rose 5.3% ahead of its earnings due Wednesday, with Lam Research Corp. (NASDAQ:LRCX), QUALCOMM Inc. (NASDAQ:QCOM) and ON Semiconductor Corp. (NASDAQ:ON) each adding more than 5% after SK Hynix flagged higher wafer capacity.
The flip side was a pullback in software as the the iShares Expanded Tech-Software Sector ETF (BATS:IGV) slumped 3.2% after gaining 15% over the past four sessions.
ZoomInfo Technologies Inc. (NASDAQ:GTM) led the decliners, down 11.3%, followed by HubSpot Inc. (NYSE:HUBS) off 10.4% and Intuit Inc. (NASDAQ:INTU) down 9.4%.
Zscaler Inc. (NASDAQ:ZS) fell 8.5% in sympathy, while megacap software bellwethers Salesforce Inc. (NYSE:CRM) slipped 4.6%.
Tuesday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Marvell Technology Inc. | +29.74% |
| Coherent Corp. | +16.44% |
| Hewlett Packard Enterprise Co. | +16.43% |
| Corning Inc. | +13.37% |
| Lumentum Holdings Inc. | +13.33% |
Tuesday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| ZoomInfo Technologies Inc. | -11.26% |
| HubSpot Inc. | -10.35% |
| Intuit Inc. | -9.39% |
| Carvana Co. (NYSE:CVNA) | -8.68% |
| Zscaler Inc. | -8.52% |
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