S&P futures are down 0.4% Thursday morning, with Nasdaq futures off roughly 1%, after U.S. equities finished lower Wednesday and the S&P 500 snapped a nine-day winning streak. Alts, software, tech hardware, outsourcing, big banks, GSEs, protein, precious metals, and airlines were among the notable laggards. Global tone is softer, with South Korea, Hong Kong, and Japan all down more than 1%, while Europe is slightly higher. Treasuries are unchanged to slightly firmer after Wednesday’s yield backup, the dollar is down 0.15%, gold is higher, Bitcoin futures are down 2.9%, and WTI crude is off 1.2% after a three-day rally.
Earnings are the main overhang, with several high-profile post-close reporters under pressure despite generally solid results. The issue appears to be elevated expectations, consistent with growing technical scrutiny after the market’s eight-week winning streak. AVGO is the key focus given its AI exposure; while management reiterated the strong AI demand narrative, investors focused on a high bar, a softer Q3 AI semi revenue guide, and no FY27 outlook increase. Middle East headlines were somewhat better, with a reported Israel-Lebanon ceasefire and Trump reportedly hesitant to restart military action in Iran, helping crude pull back. However, there was still no incremental progress on a broader U.S.-Iran framework agreement, and sequencing remains a sticking point. Fedspeak also leaned hawkish, with Logan the latest official to flag the possibility of a rate hike this year.
Economic Calendar
Initial claims and final productivity/unit labor-cost data are due this morning. Fed speakers include Barkin and Daly. Friday’s May employment report is the key macro event, with consensus looking for payrolls up roughly 90K after April’s 115K gain and unemployment unchanged at 4.3%.
Company News
- AVGO: Earnings takeaways were broadly positive, but shares are lower on a high bar, weaker Q3 AI semi revenue guidance, and no FY27 outlook boost.
- CRWD: Lower as NNARR upside disappointed relative to elevated expectations.
- VEEV: Beat and raised guidance, though investors focused on the AI monetization timeline.
- FIVE: Big beat-and-raise, but the stock is under pressure after a strong run, with some concern around future comp deceleration.
- PVH: Pressured after an unexpected FY sales guidance cut, which management attributed to geopolitical pressure in EMEA.
- WOOF: Takeaways remained cautious, with lingering concerns around share loss and category pressure.
U.S. equities finished lower Wednesday, with the Dow down 1.21%, S&P 500 down 0.74%, Nasdaq down 0.89%, and Russell 2000 down 1.31%. The S&P 500 snapped a nine-session winning streak as stocks ended near worst levels. The macro backdrop was more defensive, with oil extending its rally for a third straight session on renewed Middle East military escalation and growing skepticism around the timing of a U.S.-Iran framework agreement. WTI crude rose 2.8% to $96.37, while Treasury yields moved higher, with the 2-year up 4 bp to 4.08%, the 10-year up 4 bp to 4.49%, and the 30-year up 2 bp to 4.99%. The dollar index rose 0.3%, gold fell 1.2%, silver dropped 2.5%, and Bitcoin futures declined another 2.1% to below $66K after Tuesday’s 6.5%+ selloff.
Economic data were mostly firmer and continued to support the solid macro backdrop narrative. ADP private payrolls rose 122K in May, ahead of estimates and the strongest reading since January 2025. Pay growth for job-stayers held steady at 4.4%, while pay growth for job-changers slipped to 6.5%. May ISM Services beat expectations and rose to the highest level since February, with new orders at the strongest level since March, though the prices index also ticked higher to its highest level since August 2022 and employment remained in contraction for a third straight month. April factory orders were stronger than expected, while the Fed’s Beige Book said economic activity increased in 10 of 12 districts, employment was little changed, and price increases were moderate to strong. The Beige Book also flagged more cautious spending by middle-income households.
Sector performance was mostly negative. Energy led, up 1.38%, supported by the crude rally. Consumer Staples rose 0.77%, Healthcare gained 0.69%, Materials added 0.24%, and Real Estate rose 0.09%. Industrials slipped 0.10%, Communication Services fell 0.18%, and Utilities declined 0.54%. The weakest groups were Technology, down 1.52%, Financials down 1.21%, and Consumer Discretionary down 1.07%. Laggards included alternatives, software, tech hardware, outsourcing, big banks, GSEs, protein, precious metals, and airlines. Outperformers included energy, REITs, semis, HDDs, staples, machinery, trucking, MedTech, big-box retail, EVs, and auto parts.
Information Technology
- PANW -5.6%: Fiscal Q3 earnings and revenue beat, with billings, Next Gen Security ARR, and RPO all ahead. Q4 guidance was better and FY26 ranges were raised, though analysts noted a very high bar into the print.
- GTLB -2.8%: Q1 beat, but takeaways focused on worse-than-expected seat contraction tied to tech layoffs and M&A, a smaller-than-usual guidance raise, price-sensitive customer pressure, and near-term disruption from restructuring.
- CXM -3.0%: Q1 revenue beat and earnings were largely in line, but billings and deferred revenue were slightly light, while Q2 guidance midpoints were below Street expectations.
- GOOGL: Upsized its capital raise to nearly $85B, adding to broader equity-supply concerns and keeping AI capex, monetization, and free-cash-flow scrutiny in focus.
- Software / tech hardware: Underperformed broadly, weighing on the Technology sector.
Communication Services
- META +4.2%: Outperformed after positive takeaways from its WhatsApp conference and the rollout of a new AI agent designed to help businesses manage day-to-day operations.
- SpaceX: Reportedly looking to raise $75B at a $1.75T valuation by selling more than 555M shares at $135/share, with the IPO expected to price on June 12.
Consumer Discretionary
- GME +6.0%: Q1 earnings and revenue improved y/y, with record Q1 operating income driven by collectibles. The company also announced a $2B buyback.
- ULTA -4.8%: Q1 EPS, revenue, and comps beat, and FY26 EPS guidance was raised. However, management flagged more value-sensitive consumers, tougher comparisons, and potential margin pressure through the rest of the year.
- M: Beat and raised guidance, standing out within retail.
- OLLI: Beat and raised against what analysts described as low expectations.
Consumer Staples
- TSN -4.2%: Fell after reports that samples of an unconfirmed screwworm parasite from a Texas cattle ranch were sent to a federal lab for testing.
- KHC -2.4%: Downgraded to underperform from market perform at Bernstein, which cited packaged-food headwinds from inflation, SNAP benefit reductions, GLP-1-related health and wellness trends, leverage, and dividend pressure.
Healthcare
- MDT +5.7%: Fiscal Q4 EPS and revenue beat, FY27 EPS guidance bracketed consensus, the dividend was raised, and the company announced investments in two private companies focused on ICE catheter technology. Analysts highlighted strength in the CAS segment.
- ACHC +5.4%: Upgraded to buy from hold at Jefferies, which argued new management is well positioned to improve operational stability and earnings visibility.
Industrials
- ODFL +3.2%: Positive mid-quarter update, with May tonnage down 3.8% y/y, better than feared, and revenue per day up 12.3% y/y versus 7.6% in April. Pricing momentum was a key positive.
- Machinery / trucking: Outperformed within Industrials.
Materials
- SHW +1.2%: Rose after Sherwin-Williams and Nippon Paint ended efforts to jointly acquire AkzoNobel, removing a perceived overhang on the stock.
- USAR -8.9%: Disclosed details around its U.S. Department of Commerce funding agreement, including access to up to $1.6B in CHIPS program funding, $277M in federal funding, and $1.3B in senior secured loan capacity. The Commerce Department will receive common shares and warrants.
- AKZOY -17.2%: Fell after Nippon Paint and Sherwin-Williams scrapped efforts to acquire Akzo.
Eco Data Releases | Thursday June 4th, 2026
S&P 500 Constituent Earnings Announcements | Thursday June 4th, 2026
Data sourced from FactSet Research Systems Inc.
