CNBC — 2026-06-02#

Lead Story#

The relentless AI infrastructure trade continues to dwarf all other market catalysts, highlighted today by a 25% surge in Hewlett Packard Enterprise following a massive server-driven earnings beat, alongside a 25% jump in Marvell Technology after Nvidia’s CEO crowned it the next trillion-dollar company.

Markets & Economics#

U.S. equities marched to fresh records, largely ignoring the geopolitical noise surrounding the U.S.-Iran conflict and disruptions in the Strait of Hormuz. On the economic front, April JOLTS data showed job openings surging to 7.6 million, though actual hiring fell sharply by 419,000, underscoring a low-hire, low-fire labor market. Treasury yields pulled back across the curve on hopes of an Israel-Hezbollah ceasefire, with the 10-year note dropping to 4.434%. Meanwhile, Alphabet shares slid nearly 4% after the tech giant announced an unexpected $80 billion equity offering to fund its global AI compute buildout, raising concerns about elevated capital expenditures across hyperscalers.

Business & Earnings#

Enterprise tech and retail delivered blowout quarters across the board. HPE posted its biggest earnings beat since 2018 with EPS of 79 cents against a 53-cent estimate, driven by triple-digit growth in traditional server orders. In cybersecurity, Palo Alto Networks popped 12% following an earnings beat and rosy guidance as sophisticated AI threats drive urgent demand. In retail, Victoria’s Secret spiked 40% after reporting EPS of 60 cents, doubling estimates, while Ulta Beauty gained 7% following a solid top- and bottom-line beat. Additionally, Microsoft unveiled new proprietary AI models at its Build conference to lessen its reliance on OpenAI and drive down developer costs.

Investing & Commentary#

Goldman Sachs CEO David Solomon told CNBC that markets are firmly in “greed” mode with plenty of liquidity to absorb the upcoming trillion-dollar IPOs from Anthropic, OpenAI, and SpaceX. BlackRock’s Rick Rieder also defended the AI rally, pointing out that robust 20%-plus forward earnings growth makes the current environment fundamentally different from the dot-com bubble. For investors looking to hedge tech concentration, Jim Cramer suggested rotating into beaten-down blue chips like JPMorgan and Johnson & Johnson.

Also Worth Watching#

U.S. jury finds investor Andrew Left guilty of securities fraud (Source): The Citron Research founder faces decades in prison after a jury convicted him of market manipulation and defrauding retail investors.
Trump picks housing Dir. Bill Pulte as acting intelligence chief (Source): The appointment of the loyalist with no intelligence experience has sparked immediate backlash and concerns over the weaponization of the DNI office.
Blue Origin launchpad damaged in rocket explosion may not be restored until 2028 (Source): NASA Administrator Jared Isaacman confirmed the New Glenn launchpad setback could severely constrain U.S. heavy-lift capabilities.
Greg Abel channels Buffett’s deal-making style in nearly $17 billion spree (Source): Berkshire Hathaway deployed $10 billion into Alphabet’s equity offering and $6.8 billion to acquire Taylor Morrison Home.