S&P 500 Drops as AI Rally Pauses on Iran Stalemate

Stocks fell on June 5 as the AI-driven rally paused and U.S.-Iran peace talks stalled, sending Nasdaq futures down 1% and prompting risk-off moves into the weekend. The pullback followed a record close at 7,609.78 on June 3 and came after Alphabet’s $80 billion equity raise highlighted AI infrastructure costs, triggering Broadcom’s 12% plunge on June 4. Earlier gains had been fueled by Nvidia-led enthusiasm, resilient JOLTS data, and fading hedging demand that lifted most-shorted stocks over 30%.