AI earnings and jobs lift S&P near records despite Iran risk

U.S. stocks inched higher on June 2 as stronger-than-expected AI-related corporate results and a jump in April job openings pushed the S&P 500 toward record territory while geopolitical tensions from Iran added volatility.

The S&P 500 rose about 0.14% to roughly 7,610. The Dow Jones Industrial Average gained about 0.21% to near 51,187 and the Nasdaq Composite climbed about 0.10% to around 27,113. Chipmakers and other AI-related stocks led gains.

Hewlett Packard Enterprise reported second-quarter revenue of $10.68 billion versus an estimated $9.79 billion and raised its adjusted EPS outlook to $0.88–$0.93, driving a near 16% jump in its shares. Marvell Technology surged roughly 27% after public praise from Nvidia CEO Jensen Huang, and Nvidia’s prior $2 billion investment in Marvell was cited by investors. Broadcom and Qualcomm rose about 5% and 5.6%, respectively, supporting a broader chip-sector rally.

Labor market data showed April job openings at 7.62 million, above the roughly 6.9 million economists had expected and the highest level since May 2024. The stronger JOLTS reading reduced market bets on near-term interest-rate cuts.

Iran announced an end to negotiations with the United States and threatened to block the Strait of Hormuz. That statement lifted the crude supply premium and pushed energy stocks higher, while prompting some investors to move into defensive positions.

Market breadth was narrow: advancing and declining issues finished nearly even, and new highs outnumbered new lows by about two to one. Utilities led sector performance with a gain near 1.58%, followed by energy and basic materials. Healthcare and communication services were among the weakest sectors; Alphabet announced a roughly $80 billion capital raise to support AI investment and its shares fell about 2.5%.

On the technical side, the S&P cleared short-term resistance at 7,604. Market participants identified potential upside targets near 7,677 and 7,890 and support levels near 7,546 and 7,505.

Traders said attention will turn to upcoming AI-hardware earnings from major chip firms and to whether the Iran standoff produces any physical disruption to oil flows. Key economic events on the calendar include May consumer and producer price reports and the Federal Open Market Committee meeting later this month.