The S&P 500’s longest winning streak since May 2025 ran headfirst into reality on June 3, 2026. After nine consecutive sessions of gains, including a record close above 7,600 just the day before, US equities took a sharp turn lower as geopolitical tensions involving Iran sent investors scrambling for the exits.
The Dow Jones Industrial Average fell between 425 and 450 points intraday, while the Nasdaq Composite also declined in what amounted to a broad, unforgiving risk-off session.
What triggered the sell-off
The proximate cause was escalating Iran-related geopolitical tensions. The S&P 500 had closed above 7,600 for the first time ever on June 2, 2026, riding a wave of enthusiasm around AI and semiconductor stocks. Markets had been pricing in strong corporate earnings, cooling inflation, and an AI boom.
The sell-off was broad-based rather than concentrated in any single sector. When the Dow drops 450 points and the Nasdaq falls in sympathy, it typically signals genuine risk aversion rather than sector rotation.
