S&P 500 Hits Record 7,599.96 as Nvidia Leads Tech Rally, June 02

The S&P 500 closed at a record 7,599.96 on June 1, up 0.26% or 19.89 points, marking its first all-time high. The Nasdaq Composite gained 0.42% to 27,086.81, while the Dow Jones added 0.09% to 51,078.88. Nvidia’s 6% surge after unveiling new AI chips for personal computers powered the rally, though oil prices jumped 5.93% to $92.54 amid geopolitical concerns over Iran.

Three Indexes Hit Record Highs

All three major U.S. stock indexes reached all-time intraday peaks on June 1 before profit-taking trimmed final gains. The S&P 500 closed at 7,599.96, the Nasdaq at 27,086.81, and the Dow at 51,078.88. Meyka rates the S&P 500 a C+ with a 12-month target of $7,250.83, suggesting limited upside from current levels. The RSI indicator at 74.85 signals overbought conditions across the broad market.

Nvidia Leads AI-Driven Surge

Nvidia shares climbed more than 6% after CEO Jensen Huang unveiled the RTX Spark, a new line of superchips featuring the N1X processor at the COMPUTEX conference in Taiwan. Dell Technologies and HP Inc followed higher, rising 10% and 8% respectively. Intel fell over 4% as the new chips threaten its long-standing dominance in the PC market. The AI trade ignited a record-breaking rally across the technology sector.

Oil Spike and Geopolitical Risk Weigh on Markets

West Texas Intermediate crude futures gained 5.93% to settle at $92.54 a barrel, while Brent crude added 4.24% to $94.98. The surge followed Iranian state media reports that Tehran suspended diplomatic negotiations with the U.S. and threatened to shut the Strait of Hormuz. President Trump later told CNBC that behind-the-scenes peace talks remain active, reassuring investors. Energy stocks benefited, with Marathon Petroleum up 4%, Exxon Mobil up 2.8%, and Chevron up 1.9%.

Divergence Across Sectors

Technology was the only major winner, with the Information Technology Select Sector SPDR gaining 1.9%. Consumer Staples fell 2%, and nine of the 11 S&P 500 sectors ended in negative territory. The VIX fear gauge fell 2.67% to 15.32, indicating reduced market anxiety despite geopolitical headlines. Decliners outnumbered advancers on the S&P 500 by a 1.04-to-1 ratio, showing broad weakness outside tech despite the record close.

Final Thoughts

The S&P 500’s record close masks underlying weakness: only tech rallied while nine sectors declined. With the RSI at 74.85 (overbought) and Meyka’s 12-month target at $7,250.83, the index faces limited upside from current levels.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.