AI Stocks Push Dow to Record as US-Iran Tensions Persist

U.S. stocks closed higher Tuesday as AI-related shares pushed the Dow Jones Industrial Average to a record. The Dow rose 237 points to finish at 51,316.01. The S&P 500 gained 0.13% to 7,610.03 and the Nasdaq Composite edged up 0.03% to 27,095.59.

Technology and semiconductor stocks provided most of the market’s upward momentum as investors anticipated continued spending on AI infrastructure. Marvell Technology jumped after Nvidia Chief Executive Jensen Huang, speaking at Computex in Taipei, described the company as a likely AI winner, saying, “When you take a computing problem, and you disaggregate it into a lot of parts, and you distribute it across the entire data center, what’s necessary is connectivity. That’s the reason why Marvell is so essential.” The Philadelphia Semiconductor Index rose on the session.

Hewlett Packard Enterprise was among the top performers after reporting strong quarterly results, raising its full-year guidance and accelerating long-term financial targets by two years.

Alphabet said it plans to raise about $80 billion through equity offerings to fund the expansion of its AI infrastructure, and the package includes an investment from Berkshire Hathaway. Alphabet shares fell as investors weighed the implications of the large stock sale.

Geopolitical developments kept markets cautious. Iranian outlets reported Tehran is reviewing a U.S. proposal to end the conflict but has not communicated directly with Washington for several days, and that officials are taking a “stern” approach over past U.S. compliance with agreements. Israel continued military operations in Lebanon, and Tehran warned those attacks could endanger a fragile truce.

Oil prices rose as traders reassessed risks to global supply and the future of the Strait of Hormuz, a key route for energy shipments.

President Donald Trump offered mixed comments on diplomatic efforts. He earlier said he “couldn’t care less” if peace talks with Iran had ended; he later described a call with Israeli Prime Minister Benjamin Netanyahu as “very productive” and said discussions with Iran were “continuing, at a rapid pace.”

On the economic front, a Labor Department report showed an unexpected increase in job openings while measures of hiring, quits and layoffs declined, indicating softer labor-market activity. Market participants are focused on Friday’s U.S. employment report, where economists expect payrolls to have risen by about 85,000 in May and the unemployment rate to remain at 4.3%. Comments from Federal Reserve officials also remain part of market attention as investors track inflation trends and labor data.

Investors are monitoring AI spending, developments in the Middle East, movements in energy markets and incoming economic data that could affect monetary policy.