Finance

Major U.S. stock indexes hovered near all-time highs as strong corporate earnings and artificial intelligence optimism offset the drag from rising energy costs. The S&P 500 recently cleared the 7,600 level for the first time, marking its 24th record close of the year, while the Dow Jones and Nasdaq also reached fresh peaks. Market sentiment remains split between the "AI infrastructure engine" and cautious pre-market pullbacks driven by a hawkish Federal Reserve outlook.

In corporate news, Macy's shares rose over 3% after the retailer surpassed profit forecasts and raised its annual outlook following four quarters of comparable sales gains. Conversely, Dollar General saw a decline after missing revenue estimates, highlighting a shift in consumer behavior. In the tech sector, STMicroelectronics soared 15% on increased data center revenue forecasts, and Marvell Technology gained significant momentum following positive endorsements regarding its trillion-dollar potential.

The Institute for Supply Management reported that service sector activity grew faster than expected in May, with its index rising to 54.5. This growth was largely fueled by businesses rebuilding inventories in anticipation of further supply chain shortages related to the conflict in Iran. However, the expansion was accompanied by a sharp rise in prices for energy and materials, marking the highest input price index for the sector since mid-2022.