Stock Market Today: S&P 500, Nasdaq Hit Fresh Records as Jobs Data and AI Spending Drive Gains

U.S. stocks traded higher on Tuesday, extending a record-setting rally as investors digested stronger-than-expected labor market data, developments in the Middle East, and continued enthusiasm surrounding AI infrastructure spending. The benchmark S&P 500 and Nasdaq Composite notched fresh highs during the session, while the Dow Jones Industrial Average also advanced as risk appetite remained strong.

Markets found support from a surprisingly strong Job Openings and Labor Turnover Survey (JOLTS) report, which showed labor demand remained healthy despite concerns about slowing economic growth. Investors also monitored signs of progress in U.S.-Iran negotiations, helping ease some concerns around energy markets even as geopolitical risks remained elevated.

Market Movers:

• Hewlett Packard Enterprise (HPE) +31% — Shares surged after the company delivered a major earnings beat and significantly increased its full-year outlook. Strong demand for AI infrastructure, cloud computing, and networking products drove revenue growth, while management also unveiled an ambitious growth framework for fiscal 2027.
• Marvell Technology (MRVL) +17% — The semiconductor company rallied after unveiling its new Teralynx T100 AI networking chip. Investors welcomed the launch as another sign of accelerating demand for next-generation data center hardware supporting large-scale AI deployments.
• Broadcom (AVGO) +6% — Shares moved higher following the introduction of new edge AI networking products designed for smart homes, broadband providers, and enterprise customers. The company highlighted growing demand for AI-enabled connectivity solutions that process data closer to users and devices.
• Microchip Technology (MCHP) +4% — The chipmaker gained after projecting strong growth in its data center business. Management expects AI-related demand to remain a significant revenue driver while selective price increases help offset rising supplier costs.
• Dollar General (DG) +4% — Shares rose after the discount retailer topped earnings expectations and raised its full-year profit outlook. Margin improvements and continued store expansion plans helped offset softer-than-expected comparable sales growth.
• Fulcrum Therapeutics (FULC) -50% — The biotechnology company plunged after discontinuing development of its lead sickle cell disease treatment following unfavorable FDA feedback. The company is now evaluating strategic alternatives, including a potential sale.
• Nubank (NU) -7% — Shares slipped after the digital banking giant announced a CFO transition. While the company emphasized continuity during the leadership change, investors reacted cautiously to the executive reshuffle.
• Credo Technology (CRDO) -4% — Despite reporting strong quarterly results and issuing upbeat guidance, shares declined as investors appeared to take profits following the stock's significant run-up. Expectations heading into the report had become increasingly elevated.
• Alphabet (GOOG, GOOGL) -2% — The tech giant edged lower after announcing plans to raise approximately $80 billion to support its expanding AI infrastructure investments. While demand for AI services remains robust, investors weighed the scale of future capital spending requirements.

Labor Market Remains Surprisingly Resilient

One of the biggest catalysts for Tuesday's market action was the April JOLTS report, which showed job openings rose to 7.62 million, well above economists' expectations. The data suggested businesses continue to seek workers despite uncertainty surrounding inflation, interest rates, and global growth. Layoffs also declined during the month, reinforcing the view that the labor market remains relatively healthy. The strong report may complicate the Federal Reserve's policy outlook, however, as resilient employment could keep inflation pressures elevated.

AI Infrastructure Spending Continues to Fuel Tech Optimism

Artificial intelligence remained one of the market's dominant themes. HPE's blockbuster earnings report added to a growing body of evidence that enterprise spending on AI infrastructure remains robust, particularly across servers, networking equipment, and cloud platforms. Meanwhile, Marvell, Broadcom, and Microchip all highlighted growing opportunities tied to AI data centers and next-generation networking technologies. Investors continue to reward companies positioned to benefit from the massive buildout of AI computing infrastructure.

Oil Markets Stay in Focus as Middle East Developments Evolve

Geopolitical developments remained firmly on investors' radar. Reports of ongoing diplomatic engagement between the United States and Iran helped calm energy markets, with crude oil prices easing modestly during the session. However, concerns persist about global supply levels. Industry executives warned that oil inventories remain historically tight, raising the possibility that prices could move higher again if disruptions emerge or demand strengthens during the summer months.

Looking Ahead

Investors now turn their attention to Friday's closely watched May employment report, which could provide critical clues about the health of the labor market and the Federal Reserve's next move. Any signs of accelerating wage growth or continued labor market strength could reinforce concerns that inflation remains difficult to tame. At the same time, AI-related earnings and spending announcements continue to drive leadership within the market, helping push major indexes to fresh records. With geopolitical risks, inflation concerns, and labor market data all competing for attention, investors are likely to remain focused on whether the economy can maintain its momentum without reigniting broader price pressures.