Dow edges up, S&P 500 and Nasdaq ease as Alphabet weighs on tech

US stocks traded mixed on Tuesday as investors weighed uncertainty surrounding US-Iran talks alongside fresh developments in the artificial intelligence sector.

The benchmark S&P 500 slipped 0.1%, while the Dow Jones Industrial Average gained 86 points, or 0.2%, touching a fresh intraday record high. The tech-heavy Nasdaq Composite fell 0.3%, dragged by weakness in some major technology scrips.

Leading the decline was Alphabet, whose shares dropped more than 4% after the company announced plans to raise $80 billion through stock sales to fund its artificial intelligence expansion. The fundraising plan includes a $10 billion investment from Berkshire Hathaway. The sharp decline in the Google parent weighed on the broader technology sector and dragged the Nasdaq lower.

However, gains in other AI-linked stocks helped cut losses. Hewlett Packard Enterprise surged more than 20% after reporting a record quarter driven by AI-related data centre demand. The company also raised its full-year outlook and posted its biggest earnings beat since 2018.

Shares of Nvidia rose around 1%, while Marvell Technology jumped 25% after Nvidia Chief Executive Officer Jensen Huang said the chipmaker could become the next trillion-dollar company.

Investor sentiment also remained cautious amid conflicting signals over US-Iran talks. Iranian state media reported that Tehran would halt indirect communications with Washington and move to fully block the Strait of Hormuz. The reports also stated that "no dialogue will take place" until Israel ends its military operations in Lebanon and Gaza and withdraws from occupied areas in Lebanon.

However, US President Donald Trump struck a different tone. In an interview with CNBC, Trump said he "couldn't care less" if peace negotiations with Iran were over. Later, he said he had a "very productive call" with Israeli Prime Minister Benjamin Netanyahu and added in a separate social media post that talks with Iran were "continuing, at a rapid pace," according to CNBC.

In commodities, oil prices eased after sharp gains in the previous session. Brent crude futures fell 0.3% to trade near $94 a barrel, while US West Texas Intermediate crude futures slipped below $92 a barrel.