AI Investment Cycle Optimism Powers U.S. Rally to Tenth Week

Barry Adams
03 Jun, 2026
New York City

Stocks in New York lacked direction in early trading, and major averages hit fresh record highs amid optimism over the AI investment cycle. 

The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite edged down 0.03% as investors continued to overlook escalating tensions in the Middle East. 

The S&P 500 index extended gains for the tenth week in a row as investors poured fresh capital into the AI ecosystem-linked stocks. 

Broad market averages also extended gains as investors reacted to positive earnings and stayed optimistic about the prospects for AI infrastructure investing and technologies. 

Crude oil prices rose for the third consecutive week amid reports that Kuwait faced new air attacks from Iran, as the embattled nations conducted retaliatory strikes following Israel's attack targeting locations in Southern Lebanon. 

The prospect of resumption of normal commercial shipping through the Strait of Hormuz remained dim after the U.S., Iran, and Israel ramped up air strikes in the region.

West Texas crude oil prices rose 2.7% to $96.30 a barrel, and prices advanced for the third session in a row amid worries of tightening supply conditions. 

 

U.S. Movers 

Palo Alto Networks decreased 3.4% to $287.0, and the cybersecurity company posted strong financial results in the fiscal third quarter. 

The company revised higher its revenue guidance for the current quarter and for the fiscal year. 

GitLab dropped 3% to $30.87 after the company announced its plan to reduce its full-time workforce by 14%, or about 36 staff, and exit 22 countries.

The company estimated a pre-tax charge between $30 million and $35 million for its restructuring plan. 

The software platform developer estimated adjusted earnings in the current quarter to range between 17 and 18 cents per share. 

Ulta Beauty increased 1% to $500.26 after the company posted its quarterly results and revised higher its full-year earnings estimate. 

Victoria's Secret soared 47% to $80.06 after posting strong quarterly results and lifting its annual sales outlook. 

Macy's increased 3.4% to $22.41 after the department store operator reported better-than-expected fiscal first-quarter results and revised higher its annual sales outlook. 

The retailer posted adjusted earnings per share of 13 cents on revenue of $4.68 billion and raised its full-year sales to fall between $21.50 and $21.75 billion. 

Macy's revised its full-year earnings per share range to between $2.0 and $2.20 from the previous range between $1.90 and $2.10.