S&P futures are down 0.2% Tuesday morning after U.S. equities finished mixed Monday. Software, select semis, memory, and Energy outperformed, while Mag 7, Utilities, airlines, retail, and Staples lagged. Global tone is firmer, with Hong Kong up roughly 2.5% and Europe up about 1%. Treasuries are firmer, with yields down 2–3 bp, the dollar is off 0.1%, gold and silver are higher, Bitcoin futures are down 2.7%, and WTI crude is off 0.9% after Monday’s 5.5% rally.
Geopolitics remains noisy but largely unchanged. U.S.-Iran deal expectations remain elevated, though timing continues to slip. The bigger focus is still AI infrastructure. Alphabet’s planned $80B equity raise keeps AI capex, monetization, and free-cash-flow scrutiny in focus, while strong HPE results and higher STM data-center targets reinforced the AI earnings tailwind. Capacity also remains a key theme, with Nvidia saying it has secured enough supply for robust growth while still acknowledging constraints, and SK Hynix planning to double memory wafer capacity over five years. Tariff headlines were mixed, with the White House easing some steel and aluminum tariffs while targeting Brazil with a 25% tariff. Lower oil and a better 10-year JGB auction helped restore some focus on the rate reprieve.
Economic Calendar
JOLTS job openings are the key release today, and Fed’s Hammack is scheduled to speak. Wednesday brings ADP private payrolls, final S&P Global U.S. services PMI, ISM services, factory orders, the Beige Book, and remarks from Barr and Logan. Thursday includes initial claims, productivity, and unit labor costs, with Barkin and Daly speaking. The May employment report caps the week on Friday.
Company News
- NVDA: Said it has sufficient capacity to support robust AI growth, though supply constraints remain.
- GOOGL: Lower after announcing plans to raise roughly $80B via secondary sales to fund AI compute infrastructure. BRK.B will buy $10B of common equity through a private placement.
- ARM: Said it may reach its $15B chip sales target sooner than expected.
- MRVL: Higher after Nvidia CEO Jensen Huang said it could become the next $1T company.
- HPE: Big gainer after blowout fiscal Q2 results and guidance, driven by surging AI infrastructure demand.
- STM: Higher after roughly doubling its data-center revenue outlook.
- ORLY: Raised its buyback authorization by $2B.
- MCHP: Boosted by new Data Center Solutions segment disclosure and plans for selective price increases.
- CRDO: Lower despite a beat-and-raise and upbeat FY27 outlook.
- GNRC: Higher on a power deal with a major data-center operator.
- GIS: To sell its Häagen-Dazs ice cream stores in China.
U.S. equities finished mixed Monday, with the Dow up 0.09%, S&P 500 up 0.26%, Nasdaq up 0.42%, and Russell 2000 down 0.47%. The S&P 500 and Nasdaq both set fresh record closes, though only Technology and Energy finished higher and breadth was slightly negative. The macro backdrop was dominated by renewed Middle East headline volatility, higher oil, and firmer front-end Treasury yields. WTI crude rose 5.8% to $92.42 after Iranian state media said Tehran had suspended mediator-led talks and could fully block the Strait of Hormuz, though sentiment improved later after Israel delayed planned airstrikes on Lebanon at U.S. request and Trump said Iran talks were continuing. Treasuries were mostly weaker after last week’s rally, with the 2-year yield up 3 bp to 4.03%, the 10-year up 2 bp to 4.46%, and the 30-year down 1 bp to 4.97%. The dollar index rose 0.3%, gold fell 1.7%, silver slipped 0.8%, and Bitcoin futures declined 2.5%. On the data front, May ISM manufacturing beat and reached its highest level since May 2022, while April construction spending also beat. The final S&P Global U.S. manufacturing PMI was revised down slightly to 55.1, though output remained the strongest since April 2022 and price indexes stayed at their highest levels since 2022.
Sector performance was narrow and highly concentrated. Technology led, up 2.48%, helped by larger-cap semis, memory, software, tech hardware, and AI-related announcements. Energy gained 1.86% as crude rallied sharply. Every other sector finished lower: Utilities fell 3.05%, Consumer Discretionary declined 2.62%, Real Estate lost 1.73%, Communication Services fell 1.59%, Consumer Staples declined 1.29%, Healthcare lost 1.17%, Materials slipped 0.58%, Industrials fell 0.45%, and Financials declined 0.30%. Outperformers included software, energy, homebuilders, casinos, tech hardware, investment banks, custody banks, trucking, networking/IT equipment, and retail-investor favorites. Laggards included airlines, cruise lines, banks, autos, home improvement, housing-linked retail, apparel, aerospace and defense, pharma/biotech, small caps, paper/packaging, coatings, and building materials.
Information Technology
- NVDA +6.3%: Announced the RTX Spark chip, its first chip designed to serve as the main processor for personal computers built to run AI agents, with manufacturers including Microsoft, Dell, and HP.
- DELL +10.7%: Benefited from Nvidia’s new PC chip announcement and was upgraded to equal weight from underweight at Morgan Stanley, which cited better memory management than peers, stronger demand capture, share gains, and improved pricing power.
- CDNS +10.5%: Announced its first fully autonomous virtual agentic AI design engineer, enabling customers to run dynamic simulations in automated workflows.
- ZS +11.4%: Upgraded to buy from neutral at Guggenheim, which cited valuation and argued the recent post-earnings decline had de-risked revenue and ARR guidance.
- IBM +7.6%: Initiated at overweight at Barclays, which highlighted the company’s software revenue concentration and argued that its sticky software base is unlikely to face major AI disruption.
- INTC: Plans to ship a new AI chip by year-end designed to accelerate inference tasks while using cheaper memory and cooling technology.
- Anthropic: Confidentially filed for an IPO, adding to the broader AI capital-markets narrative.
- CRSR -5.4%: Downgraded to hold from buy at Craig-Hallum, which argued the recent price spike was unwarranted and warned of H2 margin pressure from higher memory prices.
Communication Services
- MGM +16.1%: Barry Diller’s People confirmed a $48.30/share cash bid for the roughly 74% of MGM Resorts it does not already own, valuing MGM at more than $18B.
Consumer Discretionary
- TMHC +22.3%: Berkshire Hathaway agreed to acquire Taylor Morrison for $72.50/share in cash, valuing the company at $6.8B in equity value and $8.5B in enterprise value. The offer represents roughly a 24% premium to Friday’s close.
- KSS +3.8%: Upgraded to buy from neutral at Citi, which cited attractive free-cash-flow generation despite operational challenges and a difficult competitive landscape.
- JBLU: Raised Q2 RASM guidance and offered positive early Q3 booking commentary, though the Street was not surprised given recent updates from other airlines.
Financials
- MSTR -5.9%: Disclosed the sale of 32 Bitcoin in the week through May 31, marking the company’s first disclosed Bitcoin sale.
- Investment banks / custody banks: Outperformed within Financials, though the broader sector declined.
Healthcare
- HUM +7.5%: Reaffirmed above-consensus FY EPS guidance ahead of scheduled June investor and analyst meetings.
Industrials
- SAIC +10.2%: Reported a big Q1 earnings and operating-margin beat, with revenue ahead and organic growth decline narrower than feared. The company raised FY EPS guidance and highlighted the SilverEdge acquisition and volume ramp on new and existing contracts.
- FDXF: FedEx Freight completed its split from FedEx and is set to be added to the S&P 500 on June 2.
- MSI: Agreed to acquire D-Fend Solutions for $1.5B.
- RDW -15.8%: Downgraded to hold from buy at Jefferies, which argued the recent rally was more reflective of sector excitement than company fundamentals.
Materials
- MLKN -4.9%: Announced CEO Andi Owen will retire as of June 30 and has begun a leave of absence effective immediately; COO Jeff Stutz will serve as interim CEO.
Eco Data Releases | Tuesday June 2nd, 2026
S&P 500 Constituent Earnings Announcements | Tuesday June 2nd, 2026
Data sourced from FactSet Research Systems Inc.
