S&P 500 Ends Nine-Day Win Streak as Oil Rises, Tech Falls

On Wednesday, June 3, the S&P 500 fell 0.74%, ending a nine-day winning streak. S&P 500 futures declined 0.5% and Nasdaq 100 futures dropped 0.7%.

The Dow lost about 620 points, a 1.21% fall, and the Nasdaq slipped 0.89%. Energy was the only sector to gain, rising 1.38%, while the technology sector fell 1.52%.

The market reaction followed reports that Iran struck Kuwait International Airport early Wednesday. A day earlier, U.S. Central Command reported it had intercepted multiple Iranian ballistic missiles and drones before conducting self-defense strikes on Qeshm Island in the Persian Gulf.

Oil prices moved higher on the reports amid concern about potential disruption to shipments through the Strait of Hormuz, lifting energy stocks.

Broadcom shares dropped 13% after the company reported weaker-than-expected revenue. CrowdStrike shares fell 10% after issuing guidance below estimates. Those results added to selling pressure across large-cap technology names.

Bitcoin fell to about $61,000 in the immediate aftermath, triggering roughly $1.66 billion in liquidations across crypto positions during the initial move. Wallets linked to the defunct Mt. Gox exchange moved 10,422 BTC, roughly $739 million at the time, to a new address. Market participants are watching $60,000 as the next key support for the largest cryptocurrency.

Keith Lerner, chief investment officer at Truist Wealth, described the pullback as overdue and noted that fundamentals remain solid, adding that markets often move ‘two steps forward, one step back.’

Traders and analysts cited the path of oil prices and any further escalation in the Gulf as likely drivers of near-term volatility for stocks and crypto, noting potential effects on inflation expectations and supply disruptions.