Wall Street’s record-breaking rally slows as Alphabet drags on the market

The U.S. stock market inched toward record highs on Tuesday, though gains were muted as Alphabet’s stock decline offset strong performance in AI-linked companies. The S&P 500 rose 0.1% to 7,609.78, the Dow Jones Industrial Average climbed 0.4% to 51,307.79, and the Nasdaq edged up less than 0.1% to 27,093.90. Hewlett Packard Enterprise led gains with a 19.5% surge after reporting quarterly profits exceeding analyst expectations, attributing growth to AI demand. Marvell Technology jumped 32.5%, its best day since its 2000 IPO, after Nvidia CEO Jensen Huang called it a potential 'next trillion-dollar company.' Alphabet, however, dragged on the market with a 3.9% drop following its announcement of an $80 billion cash raise to fund $190 billion in investments this year. The company’s spending exceeds Disney’s total market value, and Alphabet forecasts even higher investment levels next year. Critics question whether AI-driven spending will deliver sufficient returns, fueling concerns about a potential bubble. The market’s momentum has slowed after nine straight winning weeks for the S&P 500, its longest streak since 2023. Analysts warn of a possible slowdown, though recent gains have been driven by strong corporate earnings and hopes of a U.S.-Iran deal to reopen the Strait of Hormuz, which could stabilize oil prices. Brent crude oil rose 1.1% to $96.00 per barrel, recovering from last week’s slump. In the bond market, Treasury yields remained steady, with the 10-year yield slipping slightly to 4.45% after a report showed unexpected job openings in April. The labor market’s strength contrasts with recent concerns over high global yields, which could slow economic growth. Meanwhile, AI-driven demand for data centers surged, with Generac gaining 5.7% after securing a deal to supply backup generators to an unnamed 'leading hyperscale data center operator.'