The Prime Daily: 03 June 2026

Authored By Prime Research | Last Modified: Jun 3, 2026 10:51 AM IST

Open Free Demat Account

Markets Navigate AI Optimism and Middle East Tensions, Global AI Rally Lifts Nifty IT

Major U.S. stock indexes – the S&P 500, Dow Jones, and Nasdaq — notched record highs for a fifth consecutive session, marking the longest such streak since 2017, driven by sustained investor enthusiasm for artificial intelligence infrastructure and semiconductors.

The S&P 500 edged up 0.13% to close at 7,609.78, extending its longest winning streak in over a year. The Nasdaq Composite advanced modestly in tandem, lifted by chipmaker outperformance and persistent appetite for AI-driven growth — even as geopolitical tensions exerted a countervailing drag.

Alphabet fell nearly 4% after announcing plans to raise $80 billion through equity issuance to fund its AI buildout, which targets up to $190 billion in capital expenditures for 2026. The raise includes a $10 billion commitment from Berkshire Hathaway.

Infrastructure optimism fueled broad gains across the semiconductor sector: Texas Instruments rose 4%, Broadcom rose 5.2%, Monolithic Power rose 5.36%, and Microchip rose 5.94%. Texas Instruments stands out as the year-to-date leader in the space — up 76% versus Nvidia’s 19% — powered by a 90% year-over-year surge in data center revenue in Q1.

Marvell Technology surged over 30% after Nvidia’s CEO suggested the company could become the next trillion-dollar chipmaker. Hewlett Packard Enterprise gained 19% following strong earnings and an acceleration of its long-term financial targets, underpinned by robust demand for AI servers.

U.S. Central Command confirmed Tuesday that it intercepted multiple Iranian ballistic missiles and drones and launched defensive strikes in response to what it described as attempted attacks — the latest exchange threatening an already fragile regional ceasefire.

Bitcoin tumbled more than 5%, falling through the $70,000 and $68,000 support levels to its lowest price since April. The sell-off was triggered by Strategy Inc. (formerly MicroStrategy) disclosing an unusual bitcoin sale, which cascaded into broader weakness across digital assets, including Ethereum and Solana.

Oil prices continued to climb as Iranian missile activity and contradictory signals from U.S.-Iran diplomatic talks sustained a geopolitical risk premium in energy markets. Uncertainty over the Strait of Hormuz, compounded by declining U.S. crude inventories, reinforced supply-tightening concerns.

Asia-Pacific markets opened broadly higher today, with Japan’s Nikkei 225 hitting a record high, as investors appeared to look past uncertainty over U.S.-Iran negotiations aimed at ending the Middle East conflict.

The rupee began the month on a subdued note but weakened as the session progressed, pressured by rising crude oil prices, geopolitical concerns, and persistent foreign capital outflows. After opening lower, the currency continued to decline and settled near its intraday low, reflecting sustained dollar demand from importers.

Nifty snapped its four-day losing streak, gaining 100 points to close at 23,483 yesterday. The Nifty IT index surged over 4%, marking its largest single-day rally of the year. Nifty briefly breached the swing low of 23,262 but managed to hold above the lower band of the April 8 upward gap at 23,153. The index also sustained above the key support level of 23,106. Yesterday’s low of 23229 now serves as an important support. A decisive trend reversal would require a close above 23,800.

Indian markets are poised to open subdued on higher crude oil prices

Disclaimer

At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please Note: The information shared is intended solely for informational purposes and does not make any investment recommendations

Disclaimer

At HDFC SKY*, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please Note: The information shared is intended solely for informational purposes and does not make any investment recommendations.
HDFC SKY from HDFC Securities, one of most trusted trading platforms in India, has been recognized with the *Next-Gen Digi Content Awards 2025-26.

Markets