US Markets Overnight: Marvell jumps 33% while the SOX index goes ballistic

US Markets Overnight were all about the AI data centre trade

Tuesday’s session on June 2 US time was one of those days where the index closes looked serene and the stock-level action looked like someone had shaken a snow globe full of semiconductors. The Dow hit a fresh record, the S&P 500 quietly crept to its first close above 7,600, and the Nasdaq managed the faintest of green closes, all while Alphabet announced an $80 billion equity raise that sent its shares skidding nearly 4%. The real fireworks were in the second tier of tech: Chip maker Marvell surged 32% after Jensen Huang all but anointed it the next trillion-dollar company at Computex, and Hewlett Packard Enterprise jumped 19% on a blowout quarterly earnings beat. US markets overnight delivered a session where the Magnificent 7 mostly stumbled, but the broader market shrugged and carried on regardless.

The Dow gets its moment in the sun

The S&P 500 edged up 0.1% to close at 7,609 in US markets overnight, marking its first finish above 7,600 and extending its winning streak. The Dow Jones Industrial Average was the real standout, climbing 229 points (+0.5%) to 51,307.8 and touching a new all-time intraday high. The Nasdaq Composite barely squeaked through, gaining 0.03% to 27,093, weighed down by Alphabet’s dilution bombshell. The Russell 2000 rose 0.9%, enjoying a rare day in the spotlight as small-caps finally caught a bid.

Oil whipsawed but ultimately closed higher, with WTI settling around $93.50 a barrel (up about 1.5% from Monday’s close) and Brent holding near $95 after an early-session dip toward $91 reversed on continued Strait of Hormuz uncertainty. President Trump said a memorandum of understanding with Iran to reopen the strait could come as early as next week, but mixed signals from Israeli and Lebanese officials kept traders on edge.

Gold drifted lower to around $4,485, still stuck in no-man’s-land between geopolitical anxiety and rising real yields. Bitcoin fell to around $70,200, with ETF outflows continuing to weigh on sentiment. The VIX dropped about 4.6% to around 15.3, and the US 10-year yield held broadly steady near 4.45%. US markets overnight saw risk appetite improve across most sectors even as the mega-cap narrative fractured.

Alphabet writes a very large cheque, Microsoft gets the bill

The big story in US markets overnight was Alphabet at $359 (-3.7%) after announcing plans to raise $80 billion through a combination of underwritten public offerings, an at-the-market program, and a $10 billion private placement from Berkshire Hathaway at roughly $350 per share. The proceeds are earmarked for AI infrastructure and compute capacity, and while the Buffett stamp of approval added credibility, investors focused on the dilution. It was the largest equity raise ever announced by a technology company, and the stock responded accordingly.

Microsoft had a rougher day at $441 (-4.2%), giving back a chunk of its recent rally as the Build developer conference kicked off in San Francisco. The keynote from Satya Nadella featured new AI coding tools and agentic AI frameworks, but with the stock up sharply over the previous three sessions, this was textbook sell-the-news territory. Reports of developer dissatisfaction with Windows and GitHub at historic lows didn’t help the mood.

On the winning side, Apple climbed to $315 (+2.9%), building momentum ahead of WWDC and buoyed by Morgan Stanley flagging an attractive entry point. Tesla rose to $424 (+1.9%), catching a bid from broader consumer discretionary strength and perhaps a sympathy lift from the SpaceX merger speculation that refuses to die. Meta was roughly flat at $598 (-0.5%), digesting Monday’s selloff without much drama. Nvidia drifted to $223 (-0.7%), taking a breather after Monday’s 6.3% surge, as attention shifted to its Computex proteges. Amazon slipped to $257 (-1.8%), still dogged by regulatory headwinds around AWS in Europe and Australia.

Marvell’s trillion-dollar moment and the SOX goes ballistic

In US markets overnight the semiconductor sector absolutely erupted. The Philadelphia Semiconductor Index jumped nearly 6%, its best day in weeks, led by Marvell’s astonishing 32% surge after Nvidia’s Jensen Huang declared at Computex that Marvell could become the next trillion-dollar company, citing its critical role in data centre connectivity. HPE piled on with a 19% leap after pulling forward its long-term financial targets by two years on the back of blowout Q2 numbers. Microchip Technology popped 12% on data centre revenue growth of 63% year-over-year. Super Micro Computer climbed 6%. Our breakdown of what COMPUTEX means for chip stocks is essential reading this week.

US markets overnight in the semiconductor space told a simple story: the AI infrastructure buildout is accelerating, and the market is rewarding anyone who can prove they have a seat at the table.

One thing worth watching

Broadcom reports fiscal Q2 earnings after the close on June 3, Thursday morning in Australia, and after the semiconductor fireworks of the past two sessions, expectations are sky-high. Analysts want revenue around $22 billion and AI chip revenue growth of 140% year-over-year. Friday’s US nonfarm payrolls report will also loom large as the market has fully priced out rate cuts for 2026 and is beginning to price in the possibility of a hike. Australian investors with exposure to ASX-listed data centre and AI infrastructure plays should brace for volatility either way.