US Stocks Edge Up as AI Earnings Outweigh Iran Tensions

The US stock market edged higher on Tuesday and held near record highs as strong AI earnings and resilient labor data outweighed fresh geopolitical risk. The S&P 500 rose 0.14% at press time on a chip rally, though Iran's ending of US talks and heavy software selling kept the gains modest. US Stock Market Heatmap on June 2, 2026. Source: TradingView

1. AI Earnings Strength Lifted Chipmakers

Artificial intelligence was the day's strongest engine. A record earnings beat from Hewlett Packard Enterprise (HPE) and a high-profile chip endorsement for Marvell Technology (MRVL) showed AI demand is still turning into real revenue. This pushed investors back into semiconductors. HEWLETT PACKARD $HPE JUST REPORTED Q2 EARNINGS – Revenue: $10.68B vs $9.79B est 🟢 – Net Income: $624M – Cash from Ops: $1.40B Q3 Guidance: – Adjusted EPS: $0.88-0.93 vs $0.58 est 🟢 – GAAP EPS: $0.84-0.89 FY Guidance: – Revenue growth: 29-33% – Adjusted EPS: $3.35-3.45 vs… pic.twitter.com/DbtFqGyCeS — WOLF (@WOLF_Financial) June 1, 2026 Broadcom (AVGO) climbed about 5%, and Qualcomm (QCOM) rose 5.6% as that confidence spread. The chip rally did most of the work, lifting the indexes toward record highs. Even the perma-bears had to put down their "this time is different" takes for an afternoon.

2. Resilient Job Openings Backed the Economy

Fresh labor data reinforced the risk-on mood. April job openings, tracked by the Job Openings and Labor Turnover Survey (JOLTS), jumped to 7.62 million. That topped the 6.9 million economists expected and marked the highest level since May 2024. U.S. JOLTS JOB OPENINGS 7.618 MLN IN APR (CONSENSUS 6.880 MLN) (MAR 6.887 MLN) – LABOR DEPT — *Walter Bloomberg (@DeItaone) June 2, 2026 The surge signaled a resilient labor market, easing slowdown fears and supporting stocks. However, it also cut bets on near-term rate cuts. A firm jobs market gives the Federal Reserve less reason to ease, so the gain in stocks stayed capped. Traders pricing in a dovish Fed pivot had to readjust their timelines once again.

3. The US-Iran Deal Collapsed and Lifted Oil Risk

Geopolitics pulled the other way. Iran said it was ending all negotiations with the United States, citing repeated ceasefire violations, per CNBC. It also threatened to block the Strait of Hormuz, a route that carries a large share of global oil. BREAKING: Iran announces it is ending all negotiations with the US and vows to "completely" block the Strait of Hormuz, per CNBC. Iran says it is ending negotiations due to repeated ceasefire violations including Israeli strikes in Lebanon. Iran also threatens to block the Bab… — The Kobeissi Letter (@KobeissiLetter) June 1, 2026 That threat revived the crude supply premium, lifting energy shares. It also pushed investors toward caution, the main reason the broad market rose only marginally despite the strength of AI.

What Happened to Major US Indexes?

S&P 500: +0.14% to about 7,610, near record highs. Dow Jones Industrial Average: +0.21% to roughly 51,187. Nasdaq Composite: +0.10% to about 27,113. The advance was narrow. Advancers and decliners finished nearly even. Gains in chips and cyclicals offset heavy selling in mega-cap software such as Microsoft (MSFT). New highs still outnumbered new lows by about two to one, a sign of steady underlying strength. US Stock Market Screener: FinViz

The S&P 500 trades near record territory after a bull-flag breakout in late May. A bull flag forms when a sharp rally pauses in a tight channel before pushing higher. S&P 500 Analysis: TradingView The index just cleared resistance at 7,604. If it holds that level, 7,677 and 7,890 are the next targets, the latter about 3.7% higher. Support sits at 7,546 and 7,505.

Which Sectors Are Holding Up?

Utilities led at 1.58%. The sector caught a defensive bid as investors sought safety during the Iran escalation. Rising power demand from AI data centers added a longer-term reason to buy. Energy rose 1.38% because Iran's Hormuz threat pushed oil higher. Higher crude prices lift revenue for producers like ExxonMobil (XOM) and Chevron (CVX). US Stock Market Sectors: FinViz Basic Materials gained 1.33% as firmer commodity prices and inflation-he