U.S. stocks closed at new record levels on Tuesday as investor enthusiasm surrounding artificial intelligence-related companies continued to support the market, outweighing concerns about elevated interest rates and higher energy prices.
Market data showed the S&P 500 gained 0.1% to close at 7,609.78, while the Dow Jones Industrial Average advanced 228.91 points, or 0.4%, to 51,307.79. The Nasdaq Composite edged up by less than 0.1% to finish at 27,093.90. All three benchmarks ended the session at all-time highs.
The latest gains reflected continued investor confidence in companies benefiting from the rapid expansion of artificial intelligence infrastructure, a trend that has become a major driver of U.S. equity markets in recent months.
AI Infrastructure Spending Remains the Central Market Theme
Among the strongest performers was Hewlett Packard Enterprise, whose shares surged 19.5% after the company reported quarterly profit results that exceeded expectations. Corporate disclosures indicated demand from customers expanding artificial intelligence capabilities contributed to the performance.
Chipmaker Marvell Technology jumped 32.5%, marking its largest one-day gain since becoming publicly traded. The move followed comments by Jensen Huang during a conference in Taiwan, where he suggested the company could become the next member of the trillion-dollar market capitalization club.
The broader semiconductor and technology sectors have remained at the center of the market’s advance as companies invest heavily in data centers, computing power and other infrastructure needed to support AI applications.
Massive Capital Commitments Draw Investor Attention
At the same time, investors continued to assess the scale of spending required to sustain the AI expansion.
Corporate disclosures from Alphabet showed the company plans to raise $80 billion through a share sale to help finance artificial intelligence investments. The company has also indicated it expects to spend as much as $190 billion on equipment and other investments this year, with spending projected to increase further in the future.
Alphabet’s shares fell 3.9%, making it one of the largest drags on the S&P 500 despite the broader market’s gains. The decline reflected ongoing questions about whether the substantial financial commitments tied to AI infrastructure will generate sufficient returns over time.
Economic Signals and Oil Prices Remain in Focus
Investors also reviewed fresh labor market data showing U.S. employers advertised more job openings than expected at the end of April. Economic data suggested continued resilience in the labor market, although Treasury yields remained elevated compared with recent years.
The yield on the benchmark 10-year U.S. Treasury note slipped slightly to 4.45% from 4.47% a day earlier after briefly moving higher following the employment report. Market participants continue to monitor bond yields because higher borrowing costs can affect corporate investment and economic growth.
Meanwhile, energy markets remained sensitive to developments involving Iran and the Strait of Hormuz. Brent crude oil rose 1.1% to settle at $96 per barrel, recovering part of its recent decline but remaining well above levels seen before regional tensions intensified.
Global Markets Extend Gains
The positive sentiment extended beyond the United States. Market data showed stock indexes advanced across much of Europe and Asia, while Hong Kong’s Hang Seng Index recorded one of the strongest gains among major markets.
In Japan, the Nikkei 225 climbed above 68,000 for the first time, supported by technology shares and continued optimism surrounding artificial intelligence investment trends.
Although concerns remain regarding valuations, borrowing costs and the long-term profitability of AI-related spending, recent market performance suggests investors continue to view artificial intelligence as a key growth driver for corporate earnings and economic activity.
