U.S. stocks ground higher on Tuesday as a pair of explosive moves in the chip and AI infrastructure space powered the major indexes to new all-time highs. The S&P 500 closed above 7,600 for the first time, extending its winning streak to nine consecutive sessions — the longest run since late 2024. The mood was broadly positive, though gains were concentrated in a handful of names, raising questions about the durability of the rally as market breadth continued to narrow.
What Moved Markets
The S&P 500 rose 9.82 points, or 0.13%, to finish at 7,609.78. The Dow Jones Industrial Average climbed 241.48 points, or 0.47%, to close at 51,320.36. The Nasdaq Composite eked out a gain of 7.09 points, or 0.03%, to settle at 27,093.90 — also a fresh record. The Russell 2000, a gauge of smaller companies, outperformed with a 0.90% advance to 2,931.96.
The day’s gains were driven overwhelmingly by the AI and semiconductor trade. Hewlett Packard Enterprise (HPE) surged roughly 30% after reporting blowout fiscal second-quarter results late Monday. The company posted earnings of $0.79 per share on revenue of $10.68 billion, crushing estimates of $0.54 and $9.89 billion respectively. Cloud and AI revenue came in at $7.71 billion, well ahead of the $6.87 billion Wall Street had penciled in. HPE also raised its full-year EPS guidance to $3.35-$3.45, up sharply from its prior range of $2.30-$2.50.
Meanwhile, Marvell Technology (MRVL) rocketed roughly 19% after Nvidia CEO Jensen Huang publicly called the chipmaker “the next trillion-dollar company” at the Computex conference in Taipei, spotlighting Marvell’s role in building out AI data center connectivity.
On the sector level, utilities led the way with a 1.93% gain, followed by technology (+1.24%), materials (+1.16%), and energy (+1.10%). Communications services was the biggest laggard, falling 1.77%, dragged lower in part by Alphabet.
Notable Movers
Hewlett Packard Enterprise (HPE) — up ~30%. Historic earnings beat and raised guidance fueled the biggest single-day gain in years for the enterprise tech firm.
Marvell Technology (MRVL) — up ~19%. Jensen Huang’s endorsement at Computex sent shares surging as investors bet on Marvell’s growing role in AI infrastructure.
Alphabet (GOOGL) — down modestly. The search giant announced an $80 billion equity raise to fund AI compute buildout, including a $10 billion private placement with Berkshire Hathaway. While the Berkshire vote of confidence was notable, the sheer size of the dilution weighed on shares.
Microsoft (MSFT) — down ~4%. Shares slid after President Trump signed an executive order establishing a federal review program for AI models, raising regulatory uncertainty. A Copilot AI service outage on Monday and ongoing FTC scrutiny of the company’s cloud bundling practices added to the pressure.
Camtek (CAMT) — up ~10%. The semiconductor equipment maker rallied alongside the broader chip space.
Looking Ahead
The AI infrastructure boom continues to be the dominant force on Wall Street, but the narrowing breadth of this rally bears watching. With the S&P 500 now on a nine-day winning streak and fewer stocks participating in the advance, investors should keep an eye on whether leadership can broaden beyond the chip sector. On the geopolitical front, U.S.-Iran tensions remain a background risk. The economic calendar picks up later this week with key labor market data, which could shift the narrative if it surprises in either direction. For now, the bulls remain in control — but the market is increasingly reliant on a small group of AI winners to keep the momentum going.