Good Afternoon. If yesterday was about a single chip from Jensen Huang, today is about the wave behind it. Alphabet filed to raise $80 billion in stock to fund AI infrastructure. Hewlett Packard Enterprise climbed roughly 25% after hours on a record AI-server quarter. Marvell advanced 22% after Huang predicted it would be the next trillion-dollar company. The Dow set a fresh intraday record while Bitcoin fell almost 6% in a single session. The animal spirits are loose; they just aren't all running in the same direction. (See today’s vocab word)

—Rosie, Wyatt, Evan & Conor

🔥 What’s Hot: 🔥

🥶 What’s Not: 🥶

The News: The Dow Jones Industrial Average advanced roughly 0.5% Tuesday to a fresh intraday record near 51,340, while the S&P 500 added 0.1% to about 7,610 and the Nasdaq was essentially flat. All three indexes closed at all-time highs Monday. Tuesday morning opened soft on renewed U.S.-Iran tension, then reversed after President Trump posted that talks were progressing "at a rapid pace." The Russell 2000 advanced 0.9% as small caps led the rotation.

Why It Matters: For investors, a record session followed by another record session in a different leader (Dow today, Nasdaq yesterday) is the broadening price action bulls have wanted all year. Industrials, financials, and energy carried the Dow today while semiconductors took a breather. Every move higher in the Russell 2000 helps too — the index is dominated by regional banks and middle-market industrials.

What to Watch: Friday's May employment report — the next macro release capable of moving the index more than 1% in either direction.

Source: Investopedia

The News: Alphabet announced Tuesday it will issue $80 billion in new common stock to finance an expansion of its AI data-center capacity, with Berkshire Hathaway committing $10 billion to the offering as anchor investor. The raise is the largest equity issuance by a U.S. technology company on record. GOOGL shares fell roughly 2.3% on the dilution; BRK.B traded flat as the market processed Buffett's largest single-company technology investment ever.

Why It Matters: For investors, Alphabet using stock — not the $100 billion in cash on its balance sheet — to fund AI capex signals that management views shares as a strong currency at current levels. Berkshire's participation gives the deal a "smart money" stamp that will help institutional adoption. For consumers, more Google AI compute should accelerate Gemini's rollout into Search, Workspace, and Android — and intensify the price competition with OpenAI and Anthropic.

What to Watch: Whether other hyperscalers — Microsoft, Meta, Amazon — follow with similar equity raises, or stick to debt and cash flow. A wave of tech equity issuance would meaningfully change the supply-demand setup for large-cap growth.

Source: Yahoo Finance

The News: Hewlett Packard Enterprise shares advanced roughly 25% afterhours when the company reported its largest earnings surprise since 2018 and raised full-year guidance. AI-server revenue more than doubled year-over-year, and management said the backlog "remains at record levels with strong AI server demand." HPE also reaffirmed its commitment to integrating the recently closed Juniper Networks acquisition and lifted FY operating margin guidance by 50 basis points.

Why It Matters: For investors, HPE was the laggard among AI-server names heading into the report — Dell, Super Micro, and Lenovo had all rallied first. The catch-up move suggests the AI-server trade still has breadth left, not just Nvidia leadership. HPE's largest customers are enterprises and governments, so accelerating demand here implies the AI buildout is reaching beyond the hyperscalers into the Fortune 500.

What to Watch: Whether HPE's commentary on "record backlog" gets corroborated by Dell's next earnings report — Dell already rallied 10% Monday on similar AI-server enthusiasm.

Source: CNBC

The News: Marvell Technology shares advanced about 22% Tuesday after Nvidia CEO Jensen Huang told CEO Matt Murphy at Computex Taipei that Marvell was "destined to be the next trillion-dollar company." The endorsement followed an extended on-stage exchange covering Marvell's custom-silicon work with Amazon, Microsoft, and Google. Marvell currently sits at roughly $115 billion in market cap; reaching $1 trillion would require an additional 770% gain.

Why It Matters: For investors, Huang's endorsements have been notably accretive — companies he has previously praised on Computex stages have averaged 40% returns over the following 12 months. Marvell makes the custom AI accelerators that power the cloud services consumers actually use; faster Marvell chips mean lower compute costs that should eventually translate to cheaper AI subscriptions.

What to Watch: Marvell's August quarterly report and whether custom-silicon revenue accelerates to the run-rate implied by Huang's commentary.

Source: Investopedia

The News: Victoria's Secret & Co. — newly retickered VSXY — surged roughly 43% Tuesday after reporting Q1 net sales of $1.56 billion (up 15% year-over-year, comparable sales +13%) and adjusted EPS of $0.60 against a $0.29 consensus. The company raised its full-year 2026 outlook: net sales now $7.03-$7.13 billion (from $6.85-$6.95 billion), adjusted operating income $550-$580 million (from $430-$460 million), and adjusted EPS $4.35-$4.60. VSXY repurchased $100 million of stock in the quarter, leaving $150 million on the buyback authorization.

Why It Matters: For investors, this is a turnaround quarter — gross margin expansion, SG&A leverage, double-digit comp growth, and aggressive capital return. The new ticker symbol (VSXY, from VSCO) signals management's confidence in the rebrand sticking. Double-digit comp growth in specialty retail is rare in 2026; most apparel chains have flat or negative comps.

What to Watch: Whether the rally pulls in long-only managers who avoided VSCO during the post-spin years. With $4.60 in 2026 adjusted EPS on the high end, the stock at $55 trades at a reasonable 12x — cheap if growth holds.

Source: Yahoo Finance

The News: Iranian state media reported Tuesday morning that Tehran would suspend indirect negotiations with the United States and threatened to close the Strait of Hormuz entirely until Israel withdraws from southern Lebanon. President Trump countered hours later on Truth Social, posting that U.S.-Iran talks were continuing "at a rapid pace" and separately announcing that Israel and Hezbollah had agreed to halt hostilities. Brent crude declined 1.4% to roughly $93.60 a barrel after spiking nearly 6% Monday on the initial Iran headlines.

Why It Matters: For investors, the Iran-Hormuz-Israel triangle is now the single largest macro variable — every tweet from either side moves Brent by 2-3%. The bond market is pricing the optimistic scenario: the 10-year yield fell to 4.43% as Eurozone yields rallied alongside. For consumers, U.S. gasoline futures are about 4% off their Friday highs but still 8% above year-ago levels, so any escalation will hit pumps before mid-July.

What to Watch: Iran's official foreign ministry briefing tomorrow — Tehran's response to Trump's Hezbollah announcement will signal whether the framework holds or collapses.

Source: The Wall Street Journal

The News: Bitcoin declined roughly 5.9% in 24 hours to about $67,180, the cryptocurrency's largest single-session drawdown since February. The move erased the entire two-week rally that followed the late-May ETF inflows. Ether, Solana, and the broader crypto basket fell in sympathy, with total crypto market cap shedding approximately $180 billion. Spot Bitcoin ETF outflows accelerated, with IBIT and FBTC together seeing about $450 million of redemptions Tuesday.

Why It Matters: For investors, the decline coincided with renewed Middle East geopolitical risk and a 1% gold advance — classic risk-off behavior inside the alternative-asset complex. The narrative that Bitcoin is "digital gold" took a real-time hit. For consumers, crypto liquidations historically lead to tightening in the broader alternative-credit market within 30 days, so expect higher rates on stablecoin lending and DeFi protocols.

What to Watch: The $65,000 level — Bitcoin has rebounded from that line six times in 2026. A break below would target $58,000 (the April low).

Source: Investopedia

The News: The Bureau of Labor Statistics reported Tuesday that April job openings rose modestly versus March, with the professional and business services category accounting for the majority of the gain. Total openings remained well below the 2022 peak. The quits rate held at 2.0%, signaling continued worker caution about switching jobs, while the layoffs rate ticked higher in retail and transportation. The release marks the first major employment data of the week, with ADP private payrolls Wednesday and the nonfarm payrolls report Friday.

Why It Matters: For investors, a soft JOLTS report alongside steady inflation gives the Federal Reserve cover for the rate cut markets are pricing for September. For job seekers, the easing layoffs picture in services helps; the retail and transportation weakness signals continued goods-economy stress that may show up in subsequent payroll reports.

What to Watch: Friday's nonfarm payrolls report and the unemployment rate — consensus expects 145,000 jobs and 4.1% unemployment.

Source: Yahoo Finance

Q: What has more letters than the alphabet?

A: The post office.

A term coined by economist John Maynard Keynes to describe the human emotions — confidence, fear, exuberance, panic — that drive economic and market decisions beyond what rational calculation alone would dictate. Often invoked when markets advance on optimism, narrative, and momentum rather than fundamentals.

Usage: "With Google raising $80 billion in equity, HPE up 25%, Marvell up 22%, and Bitcoin losing $4,000 all on the same Tuesday, the animal spirits are clearly back — they just aren't all running in the same direction."

Elite Trade Club: Every morning, get a confidential email with a list of the fastest-moving stocks based on world news and current events. Sign-up here.