Dow slips as Alphabet tumbles on $80B stock sale

The Dow Jones Industrial Average fell 45 points on Tuesday as Alphabet shares slid more than 4% after the company announced plans to raise $80 billion in stock offerings to expand its artificial intelligence infrastructure. Hewlett Packard Enterprise and Marvell Technology were among AI-related names that rose sharply.

The S&P 500 slipped about 0.13% and the Nasdaq Composite fell roughly 0.26%. The pullback followed record highs for the major U.S. indexes on Monday as markets continued to trade around developments in the tech sector and geopolitical headlines.

Alphabet said the funding package would include a $10 billion investment from Berkshire Hathaway. The stock initially rose in after-hours trading after the announcement but later turned lower as investors assessed the capital raise and potential dilution.

Hewlett Packard Enterprise surged roughly 32% after reporting its largest earnings beat since 2018, accelerating its long-term targets by two years, raising full-year guidance and issuing a stronger-than-expected outlook for the current quarter. Super Micro Computer rose about 8.6% in early trading. Marvell jumped more than 19% after Nvidia CEO Jensen Huang, speaking at Computex in Taipei, described Marvell as ‘essential’ for data-center connectivity and suggested it could become a ‘trillion dollar company.’ Nvidia advanced over 1% after a larger gain the prior session tied to the launch of a new AI-focused PC processor.

Oil prices edged lower as markets reacted to reports that Tehran would halt indirect communications with the United States and could close the Strait of Hormuz until Israel halts military operations in Lebanon and Gaza. President Donald Trump commented that he ‘couldn’t care less’ if talks had ended, then later described a ‘very productive call’ with Israeli Prime Minister Benjamin Netanyahu and said negotiations with Iran were ‘continuing, at a rapid pace.’

Traders are watching U.S. job openings data due this week and the monthly employment report on Friday for signals about interest rates. Comments from Cleveland Federal Reserve President Beth Hammack are also expected to draw attention for any guidance on monetary policy.

Several hardware and infrastructure suppliers logged gains after reporting stronger results and raising guidance, while some investors remained cautious amid geopolitical and macroeconomic uncertainties.