Wall Street futures dip after record highs; HPE soars

By Medha Singh and Twesha Dikshit

June 2 (Reuters) – S&P 500 and Dow futures edged 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 25% in premarket trading after the AI server maker pulled forward its long-term financial targets by two years. Rivals Dell and Super Micro Computer climbed 1% and 5.8%, respectively.

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 2.3%.

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.

“Markets have already priced a meaningful degree of optimism regarding a potential agreement and the associated normalization of energy flows,” said Tom Nelson, head of market strategy at Franklin Templeton Investment Solutions.

“Should those expectations prove premature, some of the recent enthusiasm could fade quickly.”

A prolonged conflict could stoke inflation, push the Federal Reserve toward tighter monetary policy and threaten Wall Street’s record run.

At 06:18 a.m. ET, Dow E-minis were down 203 points, or 0.4%, S&P 500 E-minis were down 10.5 points, or 0.14%, and Nasdaq 100 E-minis were down 2 points, or 0.01%.

Marvell Technology’s shares surged more than 27% after Nvidia Chief Executive Officer Jensen Huang called the chipmaker the next “trillion dollar company” at the Computex conference in Taipei. Nvidia invested $2 billion in Marvell in March.

U.S. job openings data is due at 10:00 a.m. ET, ahead of Friday’s pivotal employment report.

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.

Among other movers, Microchip Technology added 5.4% after an upbeat data center revenue forecast.

Philip Morris slipped 0.7% after the cigarette maker lowered its annual profit forecast.

(Reporting by Medha Singh and Twesha Dikshit in Bengaluru; Editing by Shinjini Ganguli and Devika Syamnath)