US Stock Market Close: Three Major Indices Close Higher, Nvidia Rises Nearly 3%, Regains Global Market Cap Crown

On Tuesday, Eastern Time, all three major indices closed higher, with the Nasdaq leading the gains among major indices, turning its year-to-date performance positive for the first time since February.

(Minute-by-minute charts of the three major indices, source: TradingView)

At the close, the Dow Jones Industrial Average rose 0.51% to 42,519.64; the S&P 500 gained 0.58% to 5,970.37; and the Nasdaq Composite advanced 0.81% to 19,398.96.

Nvidia and other chip stocks drove the rally. Nvidia rose nearly 3%, extending gains from Monday, surpassing Microsoft in market capitalization to once again become the world's most valuable company. Broadcom and Micron Technology rose more than 3% and 4%, respectively.

The recent rally has been boosted by a strong earnings season, while some investors believe that Trump's trade policies are unlikely to push the US economy into a recession, a concern that had previously weighed on the market.

Wedbush Securities analyst Dan Ives noted that news of a planned call between Chinese and US leaders this week was positive, with Nvidia being one of the biggest beneficiaries.

Sam Stovall, chief investment strategist at CFRA Research, warned that the market could oscillate between 5,700 and the all-time high set in late February in the short term.

"We won't see Q2 GDP data until July, and we won't start getting Q2 earnings until July, and we won't have more information on tariffs until July," Stovall said in an interview with the media. "Until then, the market may just consolidate with volatility until we have a clearer picture—if we ever do—of earnings, GDP growth, and other prospects."

Performance of Popular Stocks

Most major tech stocks rose, with Apple up 0.78%, Microsoft up 0.22%, Nvidia up 2.80%, Google down 1.69%, Amazon down 0.45%, Meta down 0.60%, and Tesla up 0.46%.

Most popular Chinese ADRs closed higher, with the Nasdaq Golden Dragon China Index up 0.56%. Alibaba rose 0.19%, JD.com fell 1.37%, Pinduoduo rose 1.96%, NIO rose 0.28%, XPeng Motors rose 1.92%, Li Auto rose 6.07%, Bilibili fell 2.49%, Baidu rose 0.83%, NetEase rose 2.32%, and Tencent Music rose 0.12%.

Company News

[Meta Reportedly Focused on Developing "Ultra-Thin Open Headset"]

Meta reportedly adjusted its development plans: it plans to scrap upgrade projects for its current VR products and accelerate the launch of an "ultra-thin open headset" before the end of next year.

According to reports from overseas tech media citing multiple sources, the two alternative upgrade plans for the VR headset Quest 4, namely "Pismo Low" and "Pismo High," have been cancelled. Therefore, Meta's next Quest headset featuring a traditional design is not expected to hit the market until at least 2027. At the end of last year, Meta also confirmed that an alternative project for its high-end VR headset Quest Pro 2 had been scrapped.

Meanwhile, Meta is accelerating the development of its ultra-thin, open-style headset project, code-named "Puffin," with the goal of launching it before the end of 2026. In terms of form factor, the device will connect an independent computing module and a battery via cables. Sources said that Meta is exploring display system solutions at different price points for this product, and the final mass-produced version has yet to be determined.

[US eVTOL Company Explores Cooperation Opportunities with Saudi Enterprises, Eyes Delivery of 200 Electric Aircraft in Future]

On Tuesday (June 3) local time, Abdul Latif Jameel, a well-known Saudi enterprise, announced on its official website that it had signed a memorandum of understanding with Joby Aviation, a US-based company, to explore opportunities for establishing a distribution agreement for Joby's eVTOLs in Saudi Arabia.

The press release stated that the two parties are expected to deliver up to 200 Joby Aviation aircraft and related services over the next few years, with the total transaction value potentially reaching nearly $1 billion. "In the long run, both Abdul Latif Jameel and Joby see potential revenue opportunities in the Middle East region," it said.

[Broadcom Announces Delivery of Switch Chips, Setting Industry Record for Capacity]

On June 3, Broadcom announced the official delivery of its Tomahawk® 6-series switch chips, setting an industry record with a switching capacity of 102.4 Tbps per single chip, doubling the bandwidth of existing Ethernet switch products.

[Meta Signs 20-Year Power Supply Agreement with Constellation]

On Tuesday local time, tech giant Meta reached a 20-year agreement with Constellation Energy, the largest owner of nuclear power plants in the US, to meet the power demand driven by the artificial intelligence (AI) boom.

According to the released statement, starting from June 2027, Meta will purchase approximately 1.1 gigawatts of electricity from Constellation's Clinton Clean Energy Center in Illinois, which represents the full power generation capacity of one of the center's nuclear reactors.