The S&P 500 and the Nasdaq Composite closed at record highs Wednesday, boosted by the rally in Nvidia (NVDA).
The technology-heavy Nasdaq jumped 2% to 17,187.9, while the S&P gained 1.2% to 5,354. The Dow Jones Industrial Average rose 0.3% to 38,807.3. Tech climbed 2.7%, the biggest sector gainer, while utilities posted the largest drop.
Nvidia shares soared 5.2% as the tech giant topped $3 trillion in market value. Rockwell Automation (ROK) said Monday it expanded its artificial intelligence partnership with Nvidia to include robotics. On Sunday, Nvidia separately announced partnerships with several computer companies to build AI factories and data centers.
Hewlett Packard Enterprise (HPE) shares jumped 11% Wednesday, the top gainer on the S&P. The information technology company late Tuesday raised its full-year outlook amid robust demand for its artificial intelligence systems, while fiscal Q2 results topped market expectations.
CrowdStrike (CRWD) shares gained 12%, the biggest gain on the Nasdaq. The cybersecurity company late Tuesday posted stronger-than-expected fiscal Q1 results and raised its full-year outlook.
Dollar Tree (DLTR) shares fell 4.9%, the steepest decline on the Nasdaq. The discount retailer lowered its full-year earnings outlook due to costs stemming from tornado damage to its distribution center in Oklahoma. The company said it is weighing a potential sale of its Family Dollar business.
The US 10-year yield fell 5.3 basis points to 4.28%, while the two-year rate lost 4.4 basis points to 4.73%.
In economic news, private employment in the US increased 152,000 last month, slowing from April's downwardly revised 188,000, Automatic Data Processing (ADP) reported. Analysts in a Bloomberg survey estimated a 175,000 increase.
"The labor market is solid, but we're monitoring notable pockets of weakness tied to both producers and consumers," ADP chief economist Nela Richardson said.
The Bureau of Labor Statistics is expected to report Friday that the US economy added 185,000 nonfarm jobs last month, an increase from the 175,000 gain in April.
The US services sector recorded an expansion in activity last month as orders grew, according to two separate surveys released by the Institute for Supply Management and S&P Global (SPGI).
"The increase in the composite index in May is a result of notably higher business activity, faster new orders growth, slower supplier deliveries and despite the continued contraction in employment," said Anthony Nieves, chair of the ISM's services business survey committee.
West Texas Intermediate crude oil rose 1.3% to $74.13 a barrel. Commercial crude stockpiles in the US increased 1.2 million barrels to 455.9 million in the week ended May 31, the Energy Information Administration said. The consensus estimate in a Bloomberg survey was for a drop of 2.3 million.
Gold gained 1.1% to $2,373.7 per troy ounce, while silver advanced 1.7% to $30.12 an ounce.