Nasdaq futures declined on Tuesday, following the previous day’s achievement of new intraday and closing record highs by the three major U.S. equities indexes. However, Hewlett Packard Enterprise and Marvell Technology appeared to be positioned for significant gains. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 indicated declines of 0.4%, 0.2%, and 0.1%, respectively, in the latest trading session. Yesterday, the tech-heavy Nasdaq Composite, benchmark S&P 500, and blue-chip Dow all achieved new intraday and closing records, marking the start of a new month of trading following substantial gains in May. The month concluded with the S&P 500 on a nine-week winning streak.
Recent index gains have been driven by technology firms. Yesterday, shares of Nvidia finished more than 6% higher after CEO Jensen Huang unveiled the firm’s new RTX Spark superchip at the Computex conference in Taiwan, and they were up a further 2% before the bell today. Huang informed Marvell CEO Matt Murphy at the conference today that “you’re going to be the next trillion-dollar company,” leading to a 25% surge in shares of the AI chip and networking technology maker during premarket trading. Another tech company soaring before the bell was HPE, whose stock jumped 26% after the server firm reported quarterly results far beyond analysts’ expectations and lifted its outlook.
Elsewhere, shares of Alphabet fell 2% after the Google parent announced it intends to issue $80 billion in stock “as part of its plan to fund investments in its world-class AI compute infrastructure to meet its unprecedented customer demand.” It will sell $10 billion worth of stock to Berkshire Hathaway, whose shares were little changed. Shares of the Magnificent Seven tech giants exhibited a mixed performance ahead of the market open, following a day in which all but Nvidia and Microsoft closed lower. Oil prices experienced a decline following a significant increase the previous day, prompted by Iranian state media’s announcement that Tehran intends to close the Strait of Hormuz and will refrain from negotiations with the U.S. until Israel withdraws from Lebanon, where it is engaged in conflict with Iran-backed Hezbollah. West Texas Intermediate futures, the U.S. crude oil benchmark, experienced a decline of 1.1%, settling at $91.15 per barrel.
Meanwhile, front-month contracts of Brent crude, the global benchmark, decreased by 1.3%, reaching $93.75. Bitcoin fell below $70,000 on Tuesday, recently trading at $69,400, a decline from overnight highs of approximately $71,600. The U.S. dollar index, which monitors the value of the greenback relative to a selection of foreign currencies, registered a decline of 0.1% at 99.13. The 10-year Treasury yield, a critical determinant of interest rates on mortgages and various consumer loans, stood at 4.43%, a decrease from 4.45% at the close on Monday. Gold futures increased by 1.1%, reaching a price of $4,555 per ounce.