U.S. Major Indexes Open Lower; Marvell Surges 15%; Software Stocks Weaken in Early Trading
Taylor Wilson
All three major US indices opened lower Tuesday, yet AI and data-center names surged — Marvell up 15%, HPE up 34% — as capital kept pouring into compute hardware while software stocks sold off broadly.
How much did the three indices drop?
The S&P 500 opened down 4.56 points (−0.06%) at 7,595.40 — barely a scratch.
The Dow fell 166 points (−0.33%), the widest gap among the three.
The Nasdaq slipped 56.74 points (−0.21%) to 27,030.07.
This means → the headline is "lower open," but the real story is in single names, not the tape.
Why did AI hardware stocks surge against the tide?
Marvell jumped 15% after Nvidia CEO Jensen Huang publicly called it the next trillion-dollar company. This means → Huang's endorsement alone made Marvell the hottest name at the open.
Broadcom rose 5%; Morgan Stanley kept its buy rating and raised the target price.
STMicroelectronics gained 10% after lifting its full-year revenue target for data-center operations.
In plain terms = three different catalysts, one shared signal: the market believes AI hardware demand is still accelerating.
Why did HPE and Victoria's Secret spike?
HPE surged 34% — current-quarter earnings and revenue guidance both came in well above expectations, and the company raised full-year profit guidance. In plain terms = HPE told the market "we're earning more than you thought, and the rest of the year looks even better."
Victoria's Secret soared 45% to a record high. After a Q1 earnings beat, the company raised full-year sales guidance to $7.03 B–$7.13 B, up from the prior $6.85 B–$6.95 B range.
Lower tariff costs were a key driver behind the upgraded outlook.
Why did Alphabet buck the AI rally?
Alphabet fell 3.6%, its steepest drop since March 26.
The trigger: Alphabet announced a stock offering to raise roughly $80 billion for AI infrastructure, including a $10 billion commitment from Berkshire Hathaway.
This means → the market isn't opposing Google's AI bet, but an $80 billion equity raise dilutes existing shareholders — and that is where the selling pressure comes from.
Why did software stocks sell off across the board?
The North American tech-software ETF fell 2.18%, dragging the sector lower.
Biggest decliners: HubSpot −7.77%, RingCentral −5.71%, Zscaler −4.91%, ServiceNow −3.49%.
Cybersecurity and cloud names also slipped: CrowdStrike −1.55%, Datadog −1.53%, Palo Alto Networks −0.77%.
This reflects a clear rotation: as capital floods into the AI hardware chain, software becomes the funding source — same AI narrative, opposite treatment for hardware vs. software.
Content is for reference only, not financial advice.