Wall Street ends lower as Middle East tensions escalate
By Stephen Culp and Medha
Singh
Wed June 3, 2026
With the resumption of hostilities in Iran over the weekend, I would have thought that Monday and Tuesday would have been a short-sellers heaven. Instead, the market rose. It looks like it took three days for the war news to sink in as today there was a decisive rout all around with oil prices and inflation beckoning higher and higher and the opening of the Strait of Hormuz being critical to stemming the tide. Of course, this does not look like it’s happening soon. Inflation concerns caused a lot of profit-taking today even though fundamentals are strong, the job market looks solid and the services sector continues to expand.
Even so, prices are high and corporate spending plans have softened due to the uncertainty. But today the odds of a December rate hike quadrupled from 9% a month ago to 41%. The Fed’s Beige Book confirmed all this with the conclusion that “the fallout from higher energy prices due to the war was pervasive.” One positive voice was the New York Fed prez who said he did not feel there would be any need for a rate hike, that in fact monetary policy was “in the right place.” At 19.8 billion, volume was very close to the 20.1 average.
DJ: 51,307.79 +228.91 NAS: 27,093.90
+7.09 S&P: 7,609.78
+9.82 6/2
DJ: 50,687.07 -620.72 NAS: 26,853.98
-239.92 S&P: 7,553.68
-56.10 6/3
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