The S&P 500 Index ($SPX) (SPY) on Tuesday closed up +0.13%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.45%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.48%. June E-mini S&P futures (ESM26) rose +0.14%, and June E-mini Nasdaq futures (NQM26) rose +0.48%.
Stock indexes recovered from early losses on Tuesday and settled higher, with the S&P 500, the Dow Jones industrials, and the Nasdaq 100 posting new all-time highs. Ramped-up AI spending continues to support technology stocks. Marvell Technology soared by more than 32% after Nvidia CEO Huang predicted the company would be the next to hit a $1 trillion valuation, more than five times its current market capitalization. Also, Hewlett Packard Enterprise surged by more than 19% after giving an outlook for annual sales that topped estimates, citing massive growth in AI-fueled demand for its servers and networking. Also, signs of strength in the US labor market pushed stocks higher on Tuesday after Apr JOLTS job openings unexpectedly rose to a 23-month high.
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Stocks initially moved lower on Tuesday amid uncertainty about when a US-Iran ceasefire could be reached and about when the Strait of Hormuz could reopen. Oil prices rose sharply when the AFP reported that Hezbollah would not accept a “partial ceasefire” with Israel. Iran threatened to abandon negotiations with the US on Monday over Israel’s escalation of its attacks in Lebanon. President Trump late Monday reportedly called Israeli President Netanyahu “crazy” and said he put the brakes on Israel’s plan to strike Beirut. Axios reported that Israel no longer plans to strike Hezbollah targets in Beirut. Iran has insisted on a ceasefire in Lebanon as part of any ceasefire agreement with the US.
The weakness in software stocks on Tuesday weighed on the broader market. Also, Tuesday’s -6% plunge in Bitcoin to a 2-month low undercut cryptocurrency-exposed stocks.
US Apr JOLTS job openings unexpectedly rose +731,000 to a 23-month high of 7.618 million, stronger than expectations of a decline to 6.866 million.
Hawkish comments on Tuesday from Cleveland Fed President Beth Hammack were negative for stocks and bonds, as she said the Fed's benchmark rate "may not be restrictive" and that "if recent data trends continue, it may soon be appropriate for policy to act to address the growing risk of persistently elevated inflation."
The markets are discounting a 2% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.
The generally favorable Q1 earnings season is winding down. As of Tuesday, 84% of the 485 S&P 500 companies that reported Q1 earnings have beaten estimates. Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence. Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed up +1.21%. China's Shanghai Composite recovered from a 1.5-month low and closed up +0.43%. Japan's Nikkei Stock Average closed down -0.30%.
Interest Rates
September 10-year T-notes (ZNU6) on Tuesday closed up +3 ticks, and the 10-year T-note yield was unchanged at 4.453%. T-note prices gave up most of an early advance on Tuesday after WTI crude oil recovered from early losses and rose more than +1%, boosting inflation expectations. T-notes also fell back after the Apr JOLTS job openings unexpectedly rose to a 23-month high, a hawkish factor for Fed policy. Also, hawkish comments from Cleveland Fed President Beth Hammack weighed on T-note prices when she said the Fed might have to raise interest rates if higher inflation persists.
European government bond yields moved lower on Tuesday. The 10-year German Bund yield fell -2.8 bp to 2.975%. The 10-year UK gilt yield fell -3.9 bp to 4.859%.
Eurozone May CPI rose +3.2% y/y, right on expectations, and the largest increase in more than 2.5 years. May core CPI rose +2.5% y/y, stronger than expectations of +2.4% y/y and the largest increase in 13 months.
Swaps are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Chipmakers rallied on Tuesday, providing support to the overall market. Applied Materials (AMAT) and ON Semiconductor (ON) closed up more than +6%, and Microchip Technology (MCHP) closed up more than +5% after saying its data center solutions unit generated $302.7 million in revenue in calendar year 2025, with about $500 million expected for this year. Also, Lam Research (LRCX), Qualcomm (QCOM), and KLA Corp (KLAC) closed up more than +5%, and ASML Holding NV (ASML), Analog Devices (ADI), Broadcom (AVGO), NXP Semiconductors NV (NXPI), and Texas Instruments (TXN) closed up more than +4%. In addition, Advanced Micro Devices (AMD) and Micron Technology (MU) closed up more than +3%.
Auto parts suppliers moved higher on Tuesday after Canadian Prime Minister Carney said a rule requiring at least 50% US content for vehicles in the North American trade zone is under discussion. Aptiv Plc (APTV) closed up more than +7%, and Dana Corp (DAN) closed up more than +5%. Also, BorgWarner (BWA) closed up more than +4%, and Autoliv (ALV) and Dauch Corporation (DCH) closed up more than +3%.
HVAC and farm equipment companies rallied on Tuesday after the Trump administration said it would cut tariffs on many products in those sectors starting on Jun 8. CNH Industrial NV (CNH) closed up more than +11%, and Deere & Co (DE) closed up more than +6%. Also, Caterpillar (CAT) closed up more than +5%, Lennox International (LII) closed up more than +3%, and Carrier Global (CARR) closed up more than +2%.
Intuit (INTU) closed down more than -8% to lead software stocks lower and lead losers in the S&P 500 and Nasdaq 100 after Goldman Sachs downgraded the stock to sell from neutral, with a price target of $276. Also, ServiceNow (NOW) closed down more than -6%, and Atlassian Corp (TEAM), Workday (WDAY), and Palantir Technologies (PLTR) closed down more than -5%. In addition, Salesforce (CRM), Microsoft (MSFT), Autodesk (ADSK), and Adobe Systems (ADBE) closed down more than -4%, Datadog (DDOG) closed down more than -2%, and Oracle (ORCL) closed down more than -1%.
Cryptocurrency-exposed stocks retreated on Tuesday, with Bitcoin (^BTCUSD) sinking more than -6% to a 2-month low. Strategy (MSTR) closed down more than -9% to lead losers in the Nasdaq 100, and Galaxy Digital Holdings (GLXY) closed down more than -5%. Also, Coinbase Global (COIN) closed down more than -4%, and MARA Holdings (MARA) and Riot Platforms (RIOT) closed down more than -3%.
Marvel Technology (MRVL) closed up more than +32% to lead gainers in the Nasdaq 100 after Nvidia CEO Huang predicted that the company will be the next to hit a $1 trillion valuation, more than five times its current market capitalization.
Hewlett-Packard Enterprise (HPE) closed up more than +19% to lead gainers in the S&P 500 after reporting Q2 adjusted EPS of 79 cents, well above the consensus of 54 cents, and raising its full-year adjusted EPS estimate to $3.35 to $3.45 from an earlier forecast of $2.30 to $2.50.
Cisco Systems (CSCO) closed up more than +5% to lead gainers in the Dow Jones Industrials after unveiling its Agentic Platform Cisco Cloud Control for operating and defending IT infrastructure.
Generac Holdings (GNRC) closed up more than +5% after signing a global agreement to supply backup power generators to a leading hyperscaler data center operator.
Praxis Precision Medicines (PRAX) closed down more than -22% after saying its vormatrigine drug did not meet its primary endpoint of percent change in monthly seizure frequency in the Phase 2/3 POWER1 study in adults with focal onset seizures compared to placebo.
Nubank Holdings (NU) closed down more than -8% after Bank of America Global Research downgraded the stock to underperform to neutral with a price target of $10.
Earnings Reports(6/3/2026)
Broadcom Inc (AVGO), CrowdStrike Holdings Inc (CRWD), Five Below Inc (FIVE), Macy's Inc (M), Medtronic PLC (MDT), Ollie's Bargain Outlet Holding (OLLI), PVH Corp (PVH), Thor Industries Inc (THO), Veeva Systems Inc (VEEV).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.