June 2 (Reuters) - The S&P 500 and the Nasdaq 100 futures edged lower on Tuesday after hitting a series of record highs, while blowout results from Hewlett Packard Enterprise and a funding commitment from Alphabet underscored investor confidence in the AI buildout.
HPE surged nearly 29% in premarket trading after the AI server maker pulled forward its long-term financial targets by two years. Rivals Dell and Super Micro Computer climbed 3.3% and 5.1%, respectively.
In further evidence of AI buildout,
Alphabet said it was looking to raise $80 billion in equity offerings, including an investment from Berkshire Hathaway, to fund a costly expansion of its AI infrastructure. Its shares slipped nearly 2%.
Both the S&P 500 and the Nasdaq logged their eight straight session of gains and closed at record levels on Monday, with Nvidia rising more than 6% after it unveiled a new processor to bring AI to personal computers.
Stronger-than-expected first-quarter results and enthusiasm around AI have powered the U.S. stock rally.
Hopes for an end to the U.S.-Iran conflict and the reopening of the Strait of Hormuz have also supported sentiment, though recent flare-ups have raised concerns. Lebanon announced a partial ceasefire between Hezbollah and Israel on Monday.
A prolonged conflict could stoke inflation, and push the Federal Reserve toward tighter monetary policy and threaten Wall Street's record run.
At 05:15 a.m. ET, Dow E-minis were down 150 points, or 0.29%, and S&P 500 E-minis were down 10.25 points, or 0.13%. Nasdaq 100 E-minis were down 22.75 points, or 0.07%.
Marvell Technology's shares surged more than 21% after Nvidia Chief Executive Officer Jensen Huang called the chipmaker the next "trillion dollar company" at the Computex conference in Taipei. Nvidia invested $2 billion in Marvell in March.
U.S. job openings data is due at 10:00 a.m. ET, ahead of Friday's pivotal employment report.
Investors will also watch out for comments from a voting member of the Fed's rate-setting committee, Cleveland Fed President Beth Hammack, later in the day for cues on the rate outlook.
Money market pricing shows traders have all but priced out rate cuts for 2026 and see growing odds of an eventual hike in the face of mounting inflationary pressures.
(Reporting by Medha Singh in Bengaluru; Editing by Shinjini Ganguli)
