US EQUITY OPEN: Indices rangebound as GOOGL weakness hits Comms., while NVDA gains

US EQUITY OPEN: US indices opened mixed, with the small-cap Russell 2000 initially notably outperforming and rebounding from Monday’s losses, with both the S&P 500 and Nasdaq 100 lower. However, since the open RUT has lifted and NDX/SPX have pared all losses. Sectors are mixed, although Communication Services is the clear laggard and seeing notable weakness after Alphabet (-4%) announced it is to raise USD 80bln for AI infrastructure. Utilities and Industrials sit atop of the breakdown. Marvell (MRVL) (+24%) is soaring after Nvidia CEO Huang said it could be the next trillion dollar company, and Hewlett Packard Enterprise (HPE) (+25%) issued a stellar earnings report. The latest Middle Eastern update was Fars reporting, citing an informed source, that the exchange of messages between Iran and the US, aimed at achieving what has been described as an initial MoU between Tehran and Washington, has been halted for at least several days. Elsewhere, the Dollar is mixed against G10 peers with the Aussie the best performing and supported by rising metals prices, while the Yen lags as USD/JPY currently sits around 159.80. On that footing, ING analysts note the new bar may be set well above the 160.60 level where they intervened in April, perhaps 162-163. The Treasury yield curve is flattening, with WTI and Brent more-or-less flat as participants await further US/Iran updates. From the Fed, hawkish Hammack said it is reasonable to keep rates steady for now given uncertainties, and that the Fed may need to act ‘soon’ if inflation trends don’t cool. Ahead, JOLTS is at the top of the hour, with other scheduled risk events light, with only private inventory data due after-hours.

STOCK SPECIFICS:

• Nvidia (NVDA) CEO Huang says it has capacity to supply robust AI growth despite constraints.
• Hewlett Packard Enterprise (HPE): EPS, rev. beat, lifted next Q/FY profit view & highlighted strong server demand tied to AI infrastructure growth
• Microchip Technology (MCHP): Expects data centre solutions business to grow c. 65% to ~ USD 500mln in CY26.
• STMicroelectronics (STM): '26 data centre rev. now exp. at ~$1bln (prev. 500mln+) & said it could double in '27
• Marvell Technology (MRVL): At Computex conference, Nvidia chief Huang reportedly said next tln-dollar Co. will be Marvell
• Alphabet (GOOGL) plans to raise $80bln for AI goals & Berkshire to invest $10bln
• Signet Jewelers (SIG): EPS beat
• Dollar General (DG): Bottom line topped & lifted FY26 profit view