US stock markets continued their record-breaking run on Tuesday, with major indices reaching new all-time highs as investor enthusiasm surrounding artificial intelligence infrastructure remained firmly intact. Strong gains among semiconductor, server, and data centre companies helped offset concerns about elevated valuations, while encouraging economic data reinforced confidence in the resilience of the US economy.

The Dow Jones Industrial Average rose 0.5% to a fresh record close, while the S&P 500 gained 0.1%, also setting a new historic high. The Nasdaq Composite finished modestly higher, supported by continued strength across the technology sector.

The latest gains extend a rally that has been driven largely by artificial intelligence-related investments, following one of the strongest months for US equities in recent years.

AI Infrastructure Continues to Drive Market Leadership

The artificial intelligence sector remained the primary catalyst for market performance.

Marvell Technology emerged as one of the session's standout performers, surging more than 33% after NVIDIA CEO Jensen Huang publicly praised the company's long-term prospects during Computex in Taiwan. Huang suggested Marvell could eventually become one of the next trillion-dollar technology companies, further fuelling investor optimism around the broader AI supply chain.

Hewlett Packard Enterprise also delivered a stellar performance, climbing more than 19% after reporting quarterly earnings that comfortably exceeded expectations. Strong demand for AI-focused servers, networking equipment, and data centre infrastructure helped the company raise its forward guidance.

The rally extended beyond traditional chipmakers. Companies such as Dell, Cisco, and Intel continued to benefit from growing demand for the hardware required to support increasingly complex artificial intelligence workloads.

However, not every technology giant participated in the rally. Alphabet shares fell approximately 4% after announcing plans to issue $80 billion in stock to fund additional AI infrastructure investments. Investors appeared concerned about potential shareholder dilution despite the company's aggressive growth strategy.

The ongoing surge in AI-related stocks has prompted comparisons with the technology boom of the late 1990s. However, many analysts argue that today's market leaders are supported by significantly stronger earnings, cash flows, and business fundamentals than many companies during the dot-com era.

Economic Strength Supports Risk Appetite

Fresh economic data also provided support for equities.

US job vacancies rose to their highest level in more than two years, highlighting the continued strength of the labour market despite ongoing geopolitical tensions and concerns about economic growth.

The data reinforced expectations that the US economy remains resilient, helping to sustain investor appetite for risk assets.

Commodities and Crypto Mixed

Energy markets remained focused on developments surrounding US-Iran negotiations.

West Texas Intermediate crude rose to approximately $93.60 per barrel, while Brent crude settled near $96 per barrel as traders monitored geopolitical developments and their potential impact on global oil supplies.

Gold posted modest gains as investors maintained some demand for safe-haven assets amid ongoing uncertainty.

Cryptocurrency markets moved lower, with Bitcoin falling below the $70,000 level as traders locked in profits following the strong rally seen in recent weeks.

Corporate Movers Capture Attention

Outside the technology sector, several companies recorded significant gains.

Victoria's Secret surged more than 47% after reporting stronger-than-expected results and raising its full-year revenue and profit forecasts.

STMicroelectronics gained over 15% after increasing its revenue targets for data centre-related business segments, reflecting the growing influence of artificial intelligence across the semiconductor industry.

Meanwhile, Oracle founder Larry Ellison's net worth continued to climb as Oracle shares reached new record highs, underscoring the growing importance of enterprise software providers in the AI infrastructure buildout.

Market Outlook

Investors now turn their attention to upcoming US private-sector employment figures and service-sector activity data, both of which could provide important clues regarding the Federal Reserve's next policy moves.

The artificial intelligence sector is expected to remain the dominant market theme in the near term, particularly as demand for servers, networking equipment, cloud infrastructure, and advanced semiconductor technologies continues to accelerate.

However, stronger-than-expected economic data could reinforce expectations that interest rates will remain elevated for longer, potentially creating volatility across growth-oriented sectors.

Geopolitical developments involving the United States and Iran will also remain closely watched, given their influence on oil prices, inflation expectations, and overall market sentiment.

For now, the broader outlook remains constructive. Strong earnings growth, continued investment in AI infrastructure, and resilient economic conditions continue to support US equities, although increasingly stretched valuations may leave markets vulnerable to periods of profit-taking after their remarkable run to record highs.