US STOCKS-S&P 500, Nasdaq dip after record highs; HPE soars

‌Every day it seems like a different company comes out with incredible signs that this wave of AI is alive and well," said Ryan Detrick, chief market strategist at Carson ‌Group. Marvell Technology's shares surged more than 22% after Nvidia Chief Executive Officer Jensen Huang called the chipmaker the next "trillion dollar company" at the Computex conference in Taipei.

The S&P 500 and the Nasdaq ticked lower on Tuesday after hitting a series of record highs, while blowout results from Hewlett Packard Enterprise and a funding commitment from Alphabet underscored investor confidence in the AI buildout. HPE surged about 26% after the AI server maker ‌pulled forward its long-term financial targets by two years. Peer Super Micro Computer climbed 5.6%. Alphabet said it was looking to raise $80 billion in equity offerings, including an investment from Berkshire Hathaway, to fund a costly expansion of its AI infrastructure. Its shares slipped nearly 4.5%, weighing on the communications services index, down almost 3%. "It confirms the insatiable demand that we're seeing really across the board for AI. ‌Every day it seems like a different company comes out with incredible signs that this wave of AI is alive and well," said Ryan Detrick, chief market strategist at Carson ‌Group.

Marvell Technology's shares surged more than 22% after Nvidia Chief Executive Officer Jensen Huang called the chipmaker the next "trillion dollar company" at the Computex conference in Taipei. Marvell closed below a market value of $200 billion on Monday. Nvidia invested $2 billion in Marvell in March. The Philadelphia SE Semiconductor index jumped 3%. The S&P 500 tech index was flat with declines in heavyweights Microsoft and Amazon, down 3.4% and 2.4%, respectively, keeping gains in check.

A rebound rally in software shares ⁠stalled after a ​14% gain over the last three sessions. Servicenow, Salesforce ⁠and Intuit were down between 4.8% and 8.6%. Microchip Technology advanced 6% after an upbeat data center revenue forecast.

Eight out of 11 major S&P 500 indexes were in the green, with utilities advancing the most. Both the S&P 500 and ⁠the Nasdaq logged their eighth straight session of gains on Monday and closed at record levels, with Nvidia rising more than 6% after it unveiled a new processor to bring AI to personal computers.

Stronger-than-expected first-quarter ​results and enthusiasm around AI have powered the U.S. stock rally. Hopes for an end to the U.S.-Iran conflict and for the reopening of the Strait of Hormuz have ⁠also supported sentiment, though recent flare-ups have raised concerns. Lebanon announced a partial ceasefire between Hezbollah and Israel on Monday. A prolonged conflict could stoke inflation, push the Federal Reserve toward tighter monetary policy and threaten Wall Street's record run. "The Middle ⁠East ​matters, but it really is a market that's focusing more on the continued incredible growth we continue to see of technology and AI," Detrick said. At 09:37 a.m. ET, the Dow Jones Industrial Average rose 111.81 points, or 0.22%, to 51,190.69, the S&P 500 lost 10.80 points, or 0.14%, to 7,589.32 and the Nasdaq Composite lost 91.19 points, or 0.34%, to 26,995.62.

Investors ⁠will also watch out for comments from Cleveland Fed President Beth Hammack, a voting member of the Fed's rate-setting committee, later in the day for cues on the rate outlook. Money market ⁠pricing shows traders have all but priced out rate ⁠cuts for 2026 and see growing odds of an eventual hike in the face of mounting inflationary pressures.

Advancing issues outnumbered decliners by a 1.08-to-1 ratio on the NYSE and by a 1.36-to-1 ratio on the Nasdaq. The S&P 500 posted 12 new 52-week highs and ‌10 new lows while the Nasdaq ‌Composite recorded 47 new highs and 33 new lows.