Stock market pulls back amid Middle East tensions and tech earnings disappointment

4 June 2026 · Source balance: Centre

US stock markets experienced volatility on Wednesday and Thursday as multiple headwinds pressured investor sentiment. The Dow Jones fell 532 points or 1.04 percent on Wednesday to close at 50,776, while the S&P 500 lost 0.74 percent and the Nasdaq declined 0.89 percent. The selloff was triggered by escalating Middle East tensions between the US and Iran, rising oil prices, and disappointing tech earnings. Broadcom reported weaker-than-expected artificial intelligence revenue guidance, dragging semiconductor stocks lower. In after-hours trading, Broadcom dropped 14 percent and cybersecurity firm CrowdStrike fell 11 percent on soft guidance. Despite the pullback, markets showed signs of stabilization Thursday as investors assessed geopolitical risks and awaited Friday's employment report. The key concern remains whether elevated oil prices and inflation pressures will force the Federal Reserve to delay interest rate cuts, which could pressure growth-oriented stocks further.