US Stocks Rally on COMPUTEX Boost, Crypto Sector Takes Hit
The US stock market rallied on June 2nd, Eastern Time, thanks to the COMPUTEX conference's boost to AI sentiment. The Dow Jones Industrial Average rose 0.45% to 51,307.79 points, while the S&P 500 increased by 0.13% to 7,609.78 points and the Nasdaq Composite climbed 0.03% to 27,093.9 points.
The Philadelphia Semiconductor Index surged an impressive 5.9%, with Marvell (MRVL) leading the pack by jumping 32.5%. Hewlett Packard Enterprise (HPE) also saw significant gains of 19.5% following its earnings report.
However, the crypto sector took a hit, with Strategy (MSTR) falling 9.2% and Coinbase (COIN) dropping 4.7%. Bitcoin's price plummeted to $67,000, a 7% drop that marked a two-month low, while Ethereum fell by 5%, breaking below $1,900.
Commodities saw mixed results, with spot gold prices initially rising nearly 1.3% before falling back and closing up slightly from the previous night's close. Copper prices, on the other hand, strengthened due to enthusiasm for AI infrastructure, with New York copper futures reaching a new high after closing up 1.9%.
Jensen Huang of Nvidia stated that 'the future of AI will not be about computing power but about connectivity,' emphasizing Marvell's potential to become a major player in the field. Marvell's CEO noted the company's strong performance since Nvidia's investment, saying 'thanks Jensen, we've been following along.'
Microsoft launched seven models as part of its Build initiative, creating a closed loop of 'thinking + programming' intelligent agents and following an Anthropic-style enterprise approach.