This content was published on
June 3, 2026 - 13:22
6 minutes
(Bloomberg) — US stocks struggled to build on record gains as growing strains on the ceasefire between the US and Iran sent oil prices higher for a third straight day and lifted bond yields.The S&P 500 was poised to halt a nine-day rally, with futures sliding 0.1%. Brent rose 2.3% to top $98 a barrel. The yield on 10-year Treasuries climbed four basis points to 4.48% as crude prices stoked concerns about inflationary pressures. Nasdaq 100 contracts advanced 0.2%.The cautious mood in markets follows flare-ups in the Middle East that are testing a fragile truce between Washington and Tehran, with US forces intercepting ballistic missiles and drones aimed at neighboring countries and striking an Iranian command center in response.President Donald Trump said the US was continuing to work with Iran on a deal. Tehran has agreed it won’t have a nuclear weapon and the parties’ leaders “probably will meet at some point,” Trump said.Traders are watching whether the S&P 500 can extend its winning streak to the longest in more than three decades. A narrow rally has seen technology stocks, and chipmakers in particular, leave the rest of the market far behind.“I don’t think this is the top, there’s still room to run,” said Amanda Lyons, head of research at Energy Group Capital. “The fuel is just quietly shifting from earnings to excitement; that’s fine on the way up, it only matters when the music stops.”Investors are also awaiting SpaceX’s disclosure of the terms of its initial public offering that is set to be by far the largest in history. Reuters reported that Elon Musk’s rocket launch, satellite and AI company aims to sell more than 550 million shares at $135 apiece for a $75 billion IPO.The share sale forms part of a pipeline of potential offerings from high-profile tech companies in the coming months. AI rivals OpenAI and Anthropic PBC look to forge ahead with listings of their own, while Alphabet Inc. revealed plans for a record $80 billion equity offering on Monday.“The IPO wave is a strong confidence indicator for markets,” said Nataliia Lipikhina, head of EMEA equity strategy at JPMorgan Private Bank. “We think there is enough capacity in the market to absorb them, and the renewed issuance pipeline is additive to the broader market story.”Europe’s Stoxx 600 fell 0.5%, led lower by automakers. Marvell Technology Inc. rallied a further 15% in premarket trading after Tuesday’s 33% surge. The gains came after Nvidia Corp.’s Jensen Huang predicted that the semiconductor and networking company would be the next business to hit a $1 trillion valuation.What Bloomberg Strategists Say:“A global backdrop of heightened trade tensions and elevated energy prices would hit the European economy the hardest given its reliance on exports and imported energy. Stocks in the region are therefore likely to further underperform.”— Conor Cooper, Macro Squawk. Click here to read the full analysis.Broadcom Inc. will offer investors another snapshot into AI spending when it reports after the close, with Bloomberg Intelligence expecting accelerating revenue from XPU chips and growing demand for networking.Meanwhile, Trump moved to rebuild his signature trade policy, proposing a new tariff of at least 10% on imports from 60 trading partners. The recommended duties are a result of an investigation into how trade partners handle goods allegedly produced by forced labor.“Tariffs are clearly a risk for markets, but investors have a playbook from last year for how this can play out,” Lipikhina said. “The key question is how much of the cost companies can pass through.”The yen remained below the key 160 level after remarks by Bank of Japan Governor Kazuo Ueda indicated there’s a good chance of a rate hike this month, though they weren’t as explicit as comments he made telegraphing the previous two increases.Corporate News:Palo Alto Networks Inc. shares fell in premarket trading after the security software company’s quarterly results failed to meet elevated buyside expectations. Partners Group Holding AG is capping withdrawals at one of its evergreen private equity funds amid heightened redemption pressure, as the investor anxiety that hit private credit vehicles shows signs of spilling over to other asset classes within private markets. Akzo Nobel NV shares slumped as much as 22%, their steepest drop on record, after Nippon Paint and Sherwin-Williams abandoned efforts to acquire the Dutch paintmaker. Russian President Vladimir Putin authorized NordLine to acquire a 10% stake in Arctic LNG 2 from TotalEnergies, according to a presidential order. Inditex SA’s sales growth picked up at the start of its second quarter, boosting confidence in the Zara owner’s resilience in the face of weakening consumer spending. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 7:18 a.m. New York time Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average fell 0.3% The Stoxx Europe 600 fell 0.5% The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro fell 0.1% to $1.1619 The British pound fell 0.1% to $1.3452 The Japanese yen was little changed at 159.81 per dollar CryptocurrenciesBitcoin fell 0.4% to $67,223.91 Ether fell 1% to $1,885.02 BondsThe yield on 10-year Treasuries advanced four basis points to 4.48% Germany’s 10-year yield advanced four basis points to 3.02% Britain’s 10-year yield advanced five basis points to 4.91% CommoditiesWest Texas Intermediate crude rose 2.3% to $95.88 a barrel Spot gold fell 0.6% to $4,460.10 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Neil Campling and Subrat Patnaik.©2026 Bloomberg L.P.
