Stocks Mostly Down Early on Iran Concerns, Yields

Published as of: June 3, 2026, 9:12 a.m. ET

(Wednesday market open) A nine-day winning streak is at stake with stocks flat to lower early amid escalating Middle East hostilities and stronger-than-expected May private industry jobs growth of 122,000. Analysts had expected the ADP employment report to show 110,000, so this reading—the best since January 2025—suggests economic resilience.

ADP's data, which also showed pay up 4.4% annually, followed yesterday's better-than-expected April Job Openings and Labor Turnover Survey (JOLTS). Tomorrow's Challenger layoffs data for May leads into Friday's crucial nonfarm payrolls, and positive momentum appears to be slowing as participants prepare. Oil and yields provided another brake—both rising on news of fresh attacks by Iran against U.S. Gulf allies.

On Tuesday, major indexes eked out light gains to new record highs. The rally broadened from recent narrow moves and put the S&P 500 Index in position for its first 10-session rally streak since 1995, assuming a rise today. Seven of 11 S&P 500 sectors posted gains. Chips continued to lead, helped by Marvell's (MRVL) dramatic gains and strength in Broadcom (AVGO) ahead of earnings later today. "Stocks continue to churn higher, but the margin of safety is thinning," said Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research (SCFR). "Only 17% of S&P 500 members have outperformed the index itself over the past two months."

1. Jobs report puts spotlight on AI, wages: Consensus for jobs growth in May's nonfarm payrolls report is now around 85,000, down from 96,000 late last week and 115,000 in April. Since the start of the war, the U.S. economy has added 300,000 jobs, and April marked the first two-month stretch of positive jobs growth in a year. "That's not the strongest relative to history, but considering a relatively unstable global backdrop, that's actually pretty good and shows some signs of resilience," said Kevin Gordon, head of macro research and strategy at SCFR, in his Week Ahead video. When payrolls data hits, investors will likely seek signs that AI is affecting the labor market in terms of hiring activity and a pick-up in layoffs. So far, that's only the case for the tech sector. Wage growth is also top of mind given that inflation-adjusted average hourly earnings growth continues to slide and is in negative territory. The Fed's Beige Book on regional economic activity at 2 p.m. ET could clue investors into conditions for companies wrestling with inflation.
    
2. Huang's big stick: Back in the 1980's, stock brokerage firm EF Hutton ran TV ads with the iconic slogan: "When EF Hutton talks, people listen." Today's equivalent might be Nvidia's (NVDA) Jensen Huang, who managed to influence several stocks beyond his own earlier this week. Marvell (MRVL) climbed more than 32% Tuesday and another 12% this morning after Huang called the chips and networking company "the next $1 trillion firm." Nvidia isn't a neutral spectator; it invested $2 billion in Marvell this year. While few CEOs arguably have Huang's influence, Apple's (AAPL) worldwide developer's conference next week has potential for tech leaders to move the market, especially CEO Tim Cook and incoming CEO John Ternus. The keynote speech is at 10 a.m. PT Monday. Apple posted new record highs Tuesday, hinting investors hope for positive news from the conference.
    
3. Around the globe: Global economic growth appears to be improving, led by manufacturing. "The growth is tied to the AI capex boom, and earnings estimates are rising as a result," said Michelle Gibley, director of international equity research and strategy at SCFR. South Korea's market gains this year put its market capitalization above Canada, India, and the United Kingdom in that category as earnings expectations soared on rising memory prices. However, foreign investors have sold for eight straight weeks, Gibley added. China, she said, is a strong contender for AI leadership, but computing shortages create frequent service disruptions. China may have to make bigger advances in chipmaking and chip equipment technology to reach AI leadership goals but lacks access to advanced U.S. chips. Across the Atlantic, annual inflation in the Euro area rose to 3.2% in May, the fourth straight gain. Financial markets there price in a 25-basis point rate hike at the June 11 European Central Bank (ECB) meeting, Reuters reported. An ECB hike could put more pressure on U.S. Treasuries and raise yields here.

• Palo Alto Networks (PANW) dipped 2% before the open despite earnings and guidance that topped Wall Street's expectations for the cybersecurity firm. Shares initially leaped on the news. Shares had more than doubled since mid-April heading into earnings, perhaps setting up a "sell the news" scenario. Shares of competitor CrowdStrike (CRWD), which reports later today, inched up in early trading.
   
• Macy's (M) climbed about 2% ahead of the open. The department store chain's earnings and revenue surpassed consensus and the company raised its guidance for fiscal earnings per share. Sales at stores open a year or more climbed 3%, above the company's guidance. The quarter saw sales increases across all nameplates, with Bloomingdale's particularly strong.
   
• GameStop (GME) soared 12% in early trading as the video game and consumer electronics retailer posted better-than-expected quarterly results. The company also launched a $2 billion buyback program. The rise in sales was fueled by collectibles, GameStop said.
   
• Acadia Healthcare (ACHC) climbed 3.4% this morning following an upgrade from Jefferies. It raised its rating to buy from hold, citing faith in new management to improve the business.
   
• Broadcom popped 2.4% ahead of its earnings due this afternoon. Broadcom's guidance is worth watching for AI demand trends. Investors likely want to see an outlook that tops Wall Street's expectations, or shares could face pressure.
   
• Lumentum (LITE) rose more than 13% Tuesday, partly on hopes that it could be helped by Alphabet's (GOOGL) planned AI spending. Coherent (COHR) was another AI supply chain stock helped by Alphabet's announcement, rising more than 17% Tuesday.
   
• Shares of steel maker Cleveland-Cliffs (CLF) and aluminum maker Alcoa (AA), along with other industrial commodities makers, rose Tuesday after the White House lowered tariffs on agricultural and other equipment from 25% to 15%.
   
• Microsoft (MSFT) fell 4% Tuesday even though it introduced a variety of different AI- and cloud-related initiatives Tuesday. It also said its new quantum computing chip made with AI could lead to commercially useful machines by 2029, Reuters reported.
   
• Shake Shack (SHAK) dipped another 1% in early action after dropping 8% Tuesday as the company lowered its 2026 guidance. Shares received downgrades from two analysts.

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Gold (/GC—top chart) and silver (/SI—middle chart) are now well below their 2026 highs, possibly dragged by high crude oil and pressure from the Iran war. Copper (/HG—bottom chart), however, is still near its highs for the year, possibly a sign of strong industrial demand as the data center buildout continues.

June 4: First quarter nonfarm productivity, Challenger May job cuts, and expected earnings from Ciena (CIEN), Planet Labs (PL), and Lululemon Athletica (LULU).
June 5: May nonfarm payrolls, unemployment, and wages.
June 8: Expected earnings from Campbell's (CPB).
June 9: May existing home sales and expected earnings from J.M. Smucker (SJM), Casey's General Stores (CASY), and GameStop (GME).
June 10: May CPI, May core CPI, and expected earnings from Chewy (CHWY) and Oracle (ORCL).