Market Report, 2026-06-03

Iran grabbed the headlines once again on Wednesday. After days of back-and-forth, with Iran claiming that diplomatic efforts were not making progress while the U.S. claimed otherwise, the shots exchanged overnight have changed the probabilistic assessment of which side is telling the truth. Oil prices rose slightly, and stock prices fell.

All major stock indices posted moderate declines. The Dow Jones Industrial Average declined 621 points to 50,687. The NASDAQ posted a loss of 0.89% to 26,854. The S&P 500 lost 0.74% to 7,554. Energy stocks posted gains as expectations for higher oil prices over a longer period became more solidified. Other traditional defensive sectors also generated positive returns as investors rotated into safer assets. The AI theme was mixed, but most related stocks posted losses as valuation models adjusted in response to weakness in the bond market.

The U.S. Treasury yield curve moved higher, with both the 5-year and 10-year yields rising 4 basis points to 4.22% and 4.49%, respectively. Higher interest rates and a stronger dollar weighed on gold prices.

Moving on to economic data, the business landscape in May was surprisingly resilient. Private payroll data showed that more jobs were added to the economy than previously expected, while service-related firms reported moderately fast growth. The Federal Reserve’s Beige Book reported little change in employment levels, though consumers remained under pressure as inflation squeezed household budgets. Input prices continued to face upward pressure, with higher energy prices remaining a pervasive theme. Companies also remained cautious about making new investments.

Weekly jobless claims will be released tomorrow, and we will be watching for any new developments in the Middle East. Adams Wealth Advisors will be back to keep you updated.