Stock market today: Dow jumps 875 points to record high, S&P 500 rebounds after Broadcom stumble

June 4, 2026 - 18:45

US stock futures edged lower on Monday, as growing skepticism over President Trump's ability to broker an end to the conflict with Iran dampened investor sentiment. The pullback comes after a volatile week that saw the Dow Jones Industrial Average surge 875 points to a record high, while the S&P 500 rebounded from a sharp stumble tied to semiconductor giant Broadcom.

The uncertainty over Iran has injected fresh caution into markets that had been riding a wave of optimism following recent trade and economic data. Traders are now questioning whether diplomatic efforts can gain traction, with geopolitical risks overshadowing otherwise positive corporate earnings reports. The Dow's record-breaking jump on Friday had been fueled by hopes of a ceasefire, but those gains are now being tested as new reports suggest negotiations remain stalled.

The S&P 500, which had recovered from a 2% drop triggered by Broadcom's disappointing forecast, is also feeling the pressure. Broadcom shares fell sharply last week after the chipmaker issued a weak revenue outlook, dragging down the tech sector. While the broader index managed to bounce back, the lingering effects of that stumble, combined with the Iran concerns, are keeping investors on edge.

Analysts warn that the market's recent swings highlight a fragile recovery, heavily dependent on political developments. Without a clear resolution to the Iran situation, further volatility is expected. For now, traders are watching for any signs of progress, but the early tone suggests a cautious start to the week.