S&P 500 Ends a Nine-Day Run — Its Best Stretch in Weeks

S&P 500 futures fell 0.5% on Wednesday, June 3, after the index shed 0.74% during the session, snapping a nine-day winning streak for US stocks. 

Nasdaq 100 futures dropped 0.7%. The Dow Jones lost 620 points on the day, its worst single-session drop in weeks.

Why Did US Stocks Fall?

The trigger was geopolitical as Iran struck Kuwait International Airport early Wednesday. One day earlier, US Central Command confirmed it had intercepted multiple Iranian ballistic missiles and drones before carrying out what it described as self-defense strikes on Qeshm Island in the Persian Gulf.

Oil surged on the news. Energy stocks were the only sector to close higher on Wednesday, gaining 1.38%. 

Technology stocks bore the brunt of the selling, falling 1.52%, with Broadcom sliding 13% after a revenue miss and CrowdStrike dropping 10% on weak guidance, adding fuel to the fire.

Keith Lerner, CIO at Truist Wealth, framed the pullback as overdue rather than alarming.

“We’ve come a long way. Fundamentals are solid. Bull market still deserves the benefit of the doubt, but often markets are two steps forward, one step back,” he told CNBC.

Bitcoin Is Not Holding Up

For crypto holders, the overnight session carried a sharper sting.

Bitcoin dropped to a low of $61,000 in the aftermath of the US-Iran military exchange, triggering around $1.66 billion in liquidations across crypto assets. That number worsened through Wednesday. 

The conflict has already disrupted oil shipments through the Strait of Hormuz, heightened inflationary pressures, and triggered a global shift toward defensive positioning that is now feeding directly into crypto markets and stocks. 

Analysts are now watching the $60,000 level as the next key support. Mt. Gox-linked wallets added to supply pressure after moving 10,422 BTC worth roughly $739 million to a new address. 

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