[New York Stock Market] All Major Indices Close at Record Highs... AI Optimism and Trump’s Remarks Drive Gains

International Oil Prices End Higher Amid Unstable Negotiations
"Talks Are Proceeding"… Trump Steps In to Stabilize the Situation
AI Drives Index Gains as Nvidia Soars

On June 1 (local time), all three major U.S. stock indexes reached record highs. Although there was volatility in the market as international oil prices rose on news that Iran had suspended communication regarding ceasefire negotiations with the United States, the situation was stabilized after U.S. President Donald Trump personally stated, "Talks with Iran are proceeding rapidly."

Reuters Yonhap News

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow Jones) closed at 51,078.88, up 46.42 points (0.09%) from the previous trading day. The large-cap-focused S&P 500 index rose by 19.90 points (0.26%) to finish at 7,599.96, and the tech-heavy Nasdaq index jumped 114.188 points (0.42%) to close at 27,086.808.

In the morning, the New York stock market showed mixed movements after Iran announced it was suspending communications with the United States in protest of Israel's attack on Lebanon, and reports emerged about a complete blockade of the Strait of Hormuz.

The turning point came from President Trump's social media message. President Trump said on Truth Social that he had a very productive phone call with Israeli Prime Minister Benjamin Netanyahu and declared, "There will be no U.S. troops going to Beirut, and all troops that were already on their way have been called back." He further emphasized in a separate post, "Talks with Iran are proceeding rapidly."

Last week, the U.S. and Iranian negotiating teams agreed on a memorandum of understanding (MOU) to extend an unstable ceasefire for 60 days, which led the stock market to reach record highs. However, President Trump did not announce a final decision regarding the ceasefire MOU after concluding a meeting held in the White House Situation Room.

International oil prices ended higher. On the New York Mercantile Exchange, July delivery West Texas Intermediate (WTI) crude oil settled at $92.16 per barrel, up 5.5% from the previous trading day. On the ICE Futures Exchange, August delivery Brent crude rose 4.2% to $94.98 per barrel.

Jason Pride and Michael Reynolds of Glenmede commented, "Expectations for an agreement between the U.S. and Iran remain fluid," adding, "Recent airstrikes and conflicting statements from both sides show that key details have yet to be resolved."

Glenmede strategists added that although the likelihood of reaching an agreement seems high in the long term, the situation in the Strait of Hormuz remains unstable, and energy price trends will continue to play a key role in determining short-term inflation and interest rate outlooks.

Despite the uncertain ceasefire negotiations and the rise in international oil prices, it was investor sentiment toward artificial intelligence (AI) that drove the indexes higher. According to Bloomberg, software-related stocks surged after news broke that Nvidia would break Intel's PC technology monopoly and launch new chips for personal computers tailored to the AI era.

Additionally, the news that Anthropic had confidentially filed for an initial public offering (IPO) further fueled investor sentiment. As a result, Anthropic now has a high possibility of going public as early as this fall.

The fact that U.S. manufacturing activity expanded for a fifth consecutive month in May also drew market attention. The Institute for Supply Management (ISM) announced that the May manufacturing Purchasing Managers Index (PMI) reached 54.0. This marked five straight months of expansion and was the highest level since May 2022.

Julian Emanuel, Senior Managing Director at Evercore ISI, assessed that AI is driving the S&P 500’s gains. Emanuel told CNBC, "Record-high concentration in a handful of AI-related companies is fueling the index’s strength and offsetting the negative effects of a challenging geopolitical and consumer environment."

He further explained, "Due to record AI demand, just three companies—Micron Technology, Nvidia, and Google—accounted for over 40% of the upward revision in the S&P 500’s 2026 earnings per share (EPS) forecast since the start of the year. Excluding recoveries from recessions, this marks the strongest EPS surprise on record."

Emanuel set a year-end target for the S&P 500 at 7,750, analyzing that "the index is expected to rise to that level driven by increasing AI demand and growth in the IT, communication services, and consumer sectors." He added, "If the index’s exposure becomes overly concentrated in a handful of stocks within specific themes, downside risk could increase."

This content was produced with the assistance of AI translation services.