Dow Jones to start lower and Nasdaq called higher as oil prices rebound on Iran fighting

• Major tech stocks led declines with IBM down 6.7%, Salesforce -4%, Nvidia -2.35%, while defensive names like Medtronic and ResMed outperformed
• OECD cut global growth forecast to 2.8% for 2026 and warned prolonged Strait of Hormuz closure could slow growth to 2.1% in 2026 and 1.8% in 2027
• SpaceX reportedly planning IPO of 555.6 million shares that would raise $75 billion and value the company at approximately $1.75 trillion

Market Summary: US Stocks Open Lower on Tech Weakness Amid Iran Tensions

Market Performance:

US markets opened lower on June 3, 2026, with the Dow Jones and Nasdaq both falling 0.6%, the S&P 500 down 0.5%, and Russell 2000 dropping 0.8%. This follows Tuesday's mixed session where the Dow gained 229 points (0.5%) to close at 51,308, while the S&P and Nasdaq remained essentially flat at 7,610 and 27,094 respectively.

Key Drivers:

Oil prices surged to their highest levels since May 22, with WTI crude climbing 2.3% to $95.91 per barrel. The rally stems from escalating Middle East tensions after US strikes against Iran, followed by Iranian retaliation against Kuwait and Bahrain. Tehran rejected US claims of "self-defense," calling the attacks ceasefire violations. Despite diplomatic discussions, deal timing remains uncertain, with Secretary Marco Rubio suggesting an agreement "could happen today...or next week."

Sector Rotation:

Technology stocks led declines, with IBM down 6.7%, Salesforce -4%, Nvidia -2.35%, and Microsoft -2.2%. Other notable fallers included Atlassian, Datadog, Palo Alto Networks, and Palantir. Investors rotated into defensive stocks like Medtronic and ResMed, along with cyclicals including General Motors.

Economic Outlook:

The OECD cut its 2026 global growth forecast to 2.8% from 3.4%, warning that prolonged closure of the Strait of Hormuz could slash growth to 2.1% in 2026 and 1.8% in 2027. Analysts noted "clear signs that the energy price spike is becoming embedded in the global economy."

Corporate News:

SpaceX is reportedly planning an IPO of 555.6 million shares at $75 billion, valuing the company at approximately $1.75 trillion.