U.S. equity markets delivered a mixed performance in early June as a historic winning streak for the S&P 500 came under pressure from rising oil prices, a sharp sell-off in Broadcom shares, and renewed tariff threats. The S&P 500 had closed higher for nine consecutive sessions, pushing the index toward its longest winning streak since 1995. However, futures pointed to a pause on Wednesday and Thursday as geopolitical tensions escalated and technology earnings disappointed.
Oil prices surged after the U.S. struck an Iranian tanker it accused of attempting to break a blockade, with Tehran responding by firing on U.S. assets. The exchange heightened fears of a closure of the Strait of Hormuz, a critical chokepoint for global crude shipments. West Texas Intermediate crude climbed above $96 a barrel, while Brent hovered near $98, adding roughly 2.5% in early trading. The spike rekindled inflation concerns and clouded the outlook for Federal Reserve policy, just as markets were parsing mixed labor-market data and awaiting Friday’s monthly jobs report.
Technology shares were a major drag on sentiment after Broadcom reported a revenue shortfall that sent its stock plunging 14% in premarket trading. Despite maintaining a $100 billion long-range forecast for AI-related chip sales, the miss wiped more than $270 billion in market value and rippled across the semiconductor sector. CrowdStrike also fell 10% after the cybersecurity firm reported higher operating expenses, intensifying scrutiny on cost controls among fast-growing tech companies. The Nasdaq 100 futures slid 1%, while Dow Jones contracts edged higher as investors rotated out of momentum plays.
Adding to the cautious tone, the U.S. Trade Representative proposed a minimum 10% tariff on imports from 60 trading partners, including the European Union, Canada, Mexico, and Taiwan, following an investigation into forced labor practices. The move reignited trade-war anxieties at a time when markets were already navigating geopolitical turmoil, Fed rate expectations, and the upcoming SpaceX IPO roadshow.
Analysts noted that the confluence of headwinds could stall the equity rally that had pushed all three major indexes to consecutive record closes. With the S&P 500’s nine-week winning streak at risk, traders are watching whether upcoming economic data and Fed commentary will confirm the resilience of the expansion or signal a more cautious policy stance. The backdrop of elevated oil and trade tensions is likely to keep volatility alive across asset classes, including digital assets sensitive to shifts in global risk appetite.
