Stock Market Update

[BRIEFING.COM] After opening losses, the S&P 500 (+0.2%) and DJIA (+0.3%) are extending their push into record territory, while the Nasdaq Composite (+0.2%) holds a similar gain for the day. Strength has broadened from earlier levels, but technology stocks, and in particular, semiconductors, are once again providing leadership as the market awaits any updates on U.S.-Iran negotiations.

The top-weighted information technology sector (+0.7%) no longer holds the widest gain across S&P 500 sectors, as weakness in software names such as Intuit (INTU 323.48, -30.28, -8.56%) weighs against the rally in semiconductor stocks.

Alphabet's (GOOG 364.57, -8.01, -2.15%) stock is under pressure following its announcement of an $80 billion equity raise to accelerate AI infrastructure investments, though the market is treating the news as a meaningful positive for several AI supply chain and data center beneficiaries. Coherent (COHR 425.08, +62.18, +17.13%) and Lumentum (LITE 1028.23, +123.23, +13.62%) are among the best-performing S&P 500 components as a result.

Though not a member of the S&P 500, Marvell (MRVL 286.22, +66.79, +30.44%) is surging to record highs of its own after NVIDIA (NVDA 225.25, +0.89, +0.40%) CEO Jensen Huang delivered a rare and powerful endorsement at Computex in Taipei, calling Marvell the "next trillion-dollar company."

The PHLX Semiconductor Index is up 4.9%.

Additionally, Hewlett Packard Enterprise (HPE 54.16, +7.16, +15.23%) trades sharply higher after a beat-and-raise earnings report, with a record backlog highlighting the confidence in the durability of AI infrastructure spending.

Elsewhere, the utilities sector (+1.9%) outperforms as interest rates are more stable today after yesterday's oil-driven spike, while the materials sector (+0.9%) also reclaims some of its previous weakness.

The energy sector (+1.1%) is at its best levels of the session as oil drifts higher, with crude oil currently up $1.01 (+1.1%) to $93.17 per barrel. Geopolitical developments are relatively quiet following Monday's volatility.

As for today's laggards, Alphabet's weakness weighs on the communication services sector (-1.3%), while the health care (-1.1%), consumer discretionary (-0.4%), and consumer staples (-0.2%) sectors also move lower.

Overall, today's session reinforces the market's continued conviction in the AI infrastructure buildout, with strong gains across semiconductors, networking equipment, and optical component names. Between Alphabet's increased investment plans and NVIDIA CEO Jensen Huang's endorsement of key suppliers, investors continue to view AI-related spending as a durable growth driver, helping fuel another push toward record highs for the major averages.

Reviewing today's data:

• April JOLTs - Job Openings 7.618 mln; Prior was revised to 6.887 mln from 6.866 mln