Good morning and welcome to today's market chronicle. It's Wednesday, June 3, 2026. The S&P 500 shattered 7,600 for the first time in history yesterday while Iran spent the night firing ballistic missiles at Kuwait and Bahrain, which means both the bulls and the geopolitical risk traders ended the session with something to show for themselves.
Yesterday's close was a triumph of narrative over reality. The S&P 500 finished at 7,609, driven almost entirely by a semiconductor complex that operates less like a market sector and more like a cult. Nvidia ($NVDA) surged more than six percent after unveiling a new PC chip at Computex, Jensen Huang's annual festival where he announces the next thing Wall Street is required to buy. Dell Technologies ($DELL) climbed nearly eleven percent, because proximity to Jensen's stage lights is apparently contagious. Marvell Technology ($MRVL) rose twenty-one percent on an onstage endorsement from the man himself, and Hewlett Packard Enterprise ($HPE) surged twenty-six percent premarket on AI infrastructure demand. Alphabet ($GOOGL) fell modestly on a large stock sale plan, providing the one footnote of doubt in an otherwise unanimous hallelujah chorus. The information technology sector added two and a half percent. The energy sector quietly added nearly two percent as well, a detail nobody on CNBC seemed particularly eager to discuss. The market registered a record and moved on, because that is what markets do when the chips are glowing.
But everyone is pretending not to notice that oil is pushing toward ninety-five dollars a barrel not because OPEC is being magnanimous, but because Iran launched ballistic missiles at its neighbors overnight and the ceasefire talks with Washington are, to put it diplomatically, not going well. The Trump administration responded by announcing twenty-five percent tariffs on Brazil, a country with which the United States runs a trade surplus. Translation: this makes no obvious economic sense, which at this point is the standard operating procedure.
Today brings ADP private payrolls at seven-fifteen Eastern, consensus around a hundred and sixteen thousand jobs, followed by S&P Global composite PMI at eight forty-five and ISM Services at nine o'clock, expected flat at fifty-three point seven. Whether anyone will pause to read these numbers, or simply scan the headline and return to watching chip stocks, is a genuinely open question. The ISM Services report is arguably the more important indicator for where this economy is headed, but the semiconductor complex tends not to wait for economists.
Gold is at four thousand four hundred fifty-six dollars, down modestly, which given the missile launches feels like underachievement. WTI crude is between ninety-three and ninety-five dollars and rising. Bitcoin is trading somewhere below seventy-three thousand dollars, pressured by a ten-year yield parked around four point seven percent. S&P futures point slightly higher, because the chips have not stopped glowing and the missiles, so far, have not landed anywhere the market cares about.
Missiles in the Gulf, records on the tape, tariffs on Brazil, and a services PMI nobody will read carefully. Have a good one.