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June 2, 2026 - 14:28
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(Bloomberg) — A rally in US stocks is pausing after the artificial-intelligence trade fueled the S&P 500’s longest winning streak in more than a year, with investors gauging prospects for an end to the war in the Middle East.Futures for the US benchmark slipped 0.1% after an eight-day run of gains. Technology shares gave European and Asian stocks a fresh boost. Marvell Technology Inc. soared 19% in US premarket trading after Nvidia Corp.’s Jensen Huang said the chipmaker could be the “next trillion-dollar company.”Brent eased after its biggest gain in about a month, falling 1.2% to below $94 a barrel. President Donald Trump is still optimistic the US can reach an interim peace agreement with Iran “over the next week,” after the Islamic Republic threatened to suspend talks because of Israel’s escalating attacks in Lebanon.Traders are juggling unprecedented euphoria around the economic potential of AI and a war that has brought about a historic disruption in oil markets. Uncertainty about how close a deal may be means investors must consider that crude prices could retreat dramatically or scale to the highest levels in years.In the latest example of the vast amounts of capital being pumped into AI infrastructure, Alphabet Inc. said it is raising $80 billion through equity offerings. The announcement came hours after Anthropic PBC filed draft paperwork for a possible blockbuster initial public offering.“We may be approaching the point where optimism around the long-term positive impact of the AI buildout is going to crash against a wall of higher yields, higher inflation and lower growth,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management.In bond markets, Treasuries found some relief, with the 10-year yield falling two basis points to 4.43%. The dollar edged lower, while Bitcoin dropped below $70,000 for the first time in two months.Treasuries have sold off in recent weeks as investors increasingly bet the Federal Reserve may need to keep rates higher for longer to contain the biggest inflation surge since 2023. The move has also raised questions about whether the mounting US debt burden and AI financing demands are pushing up yields.“US data, such as the ISM manufacturing print we just had, still keeps the Fed/inflation debate alive and limits the scope for a dovish rates repricing, especially if oil remains volatile,” said Alessandro Gabellone, fixed-income analyst at Bank Degroof Petercam.Tuesday’s figures on US job openings will likely add to the series of favorable labor-market data releases for April. High-frequency data suggest total openings inched up, particularly in the second half of the month, according to Bloomberg Economics.Japan’s 10-year yield dropped 10 basis points after an auction drew firm demand. The yen was steady around 159.70 per dollar as Japanese Finance Minister Satsuki Katayama said authorities were ready to take steps as needed in the foreign exchange market.Tech BubbleSoftware stocks have caught a bid in recent days after lagging technology peers for months. Some investors say the group could help extend the tech rally as traders become more selective about AI winners and losers.“We don’t see a bubble at the moment in the tech sector as the earnings season has vindicated the market price action,” said Roland Kaloyan, head of European equity strategy at Societe Generale SA. “We see the current trading levels of software and cybersecurity sectors as attractive entry points in terms of valuation.”What Bloomberg’s Strategists Say…“Global investors are reaching an overall inflection point for AI sentiment with the upcoming SpaceX IPO. The giant sale is based on valuation projections which have rarely be seen before. Of course everything may run smoothly and the AI theme will be enhanced. But if not, traders will circle back looking for reasons to trim exposure.”— Mark Cranfield, macro strategist. Click here for more.Corporate News:Hewlett Packard Enterprise Co. soared 24% in US premarket trading on massive AI-fueled demand for its servers and networking equipment. SK Hynix Inc. plans to double its memory chip wafer capacity over the coming half-decade, a major expansion that should help ease a global shortage of an essential component of AI. Abivax SA shares plunged after cancer cases in a crucial clinical trial for an experimental bowel disease drug threw the French biotech’s future into question. UniCredit SpA has secured commitments that will take its stake in Commerzbank AG well above 30%, according to people familiar with the matter, adding momentum to its €38.6 billion ($45 billion) acquisition offer for the German rival. Alphabet Inc. unveiled plans to raise $80 billion through equity offerings, including an investment deal with Berkshire Hathaway Inc., highlighting the scale of spending tied to the race to build AI infrastructure. Some of the main moves in markets:StocksS&P 500 futures fell 0.1% as of 8:26 a.m. New York time Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average fell 0.4% The Stoxx Europe 600 rose 0.6% The MSCI World Index rose 0.1% CurrenciesThe Bloomberg Dollar Spot Index fell 0.1% The euro rose 0.2% to $1.1652 The British pound rose 0.2% to $1.3476 The Japanese yen was little changed at 159.76 per dollar CryptocurrenciesBitcoin fell 2.9% to $69,292.26 Ether fell 1.2% to $1,978.76 BondsThe yield on 10-year Treasuries declined three basis points to 4.43% Germany’s 10-year yield declined five basis points to 2.96% Britain’s 10-year yield declined seven basis points to 4.83% CommoditiesWest Texas Intermediate crude fell 1.2% to $91.02 a barrel Spot gold rose 1% to $4,529.73 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Neil Campling and Subrat Patnaik.©2026 Bloomberg L.P.
