S&P 500 Breaks 7,600, AI Rally Gaining Concentration
US stocks closed slightly higher on Tuesday (June 2), with the S&P 500 setting a new closing record after briefly touching an intraday high. The benchmark index rose 0.13% to 7,609.78, marking its first close above 7,600. The Dow Jones Industrial Average rose 229 points (0.45%) to 51,307.79, also briefly setting an intraday record, while the Nasdaq Composite Index edged up 0.03% to 27,093.90.
Market movements remained driven by two themes: the latest US-Iran developments and the dominance of large technology stocks. However, the AI narrative was again the primary driver this session, with sharp internal rotation within the technology sector.
Alphabet weighed on the S&P 500 after its shares fell nearly 4% after the company announced plans to raise US$80 billion through a stock sale to fund its AI expansion, including a US$10 billion investment from Berkshire Hathaway. Alphabet's pressure suggests the market is becoming more sensitive to large funding needs, although AI remains a key theme.
Semiconductor stocks provided support for the index. Marvell surged 32% after Nvidia CEO Jensen Huang called the company the "next trillion dollar company." This boost also lifted the Philadelphia Semiconductor Index by nearly 6%, keeping sentiment in the chip sector strong.
Elsewhere, Hewlett Packard Enterprise surged more than 19% after releasing a strong current-quarter outlook and raising its full-year forecast, as well as posting its biggest second-quarter profit surprise since 2018. While the market rally remains driven by a cluster of technology stocks, warnings are emerging about concentration risk as index performance becomes increasingly dependent on a few big names. (Arl)*
Source: Newsmaker.id
