US Pre-Market: Three Major Indices Mixed, Oil Prices Rebound on Middle East Tensions, Broadcom Earnings Ahead

TradingKey - Before the U.S. market open on Wednesday, June 3, U.S. stock index futures diverged as investors remained cautious ahead of the release of ADP employment, ISM Services PMI, EIA crude oil inventories, and the Fed's Beige Book. As of press time, Dow futures fell 0.25%, S&P 500 futures fell 0.06%, and Nasdaq 100 futures rose 0.26%, showing that the tech sector remains relatively resilient.

U.S. stock index futures performance, Source: Investing

Notably, U.S. stocks hit new highs again on Tuesday, with the Dow rising 0.45%, the Nasdaq up 0.03%, and the S&P 500 gaining 0.13%. The market has just achieved a performance rarely seen since World War II, but history tells us this also serves as a warning.

In commodities, escalating Middle East tensions pushed oil prices higher. WTI ( USOIL) spot crude rose 2.59% to $95.8; Brent spot crude rose 2.16% to $98.03. The U.S. Dollar Index climbed 0.13% to near 99.31, while the 10-year Treasury yield rose to 4.487%. Spot gold ( XAUUSD) fell 0.64% to $4,460.

WTI daily chart, Source: TradingView

Market Volatility

Chip stocks were mixed in pre-market trading. Intel ( INTC) rose more than 5% in pre-market, AMD gained about 2.5%, and Broadcom rose about 2%; Nvidia ( NVDA) fell slightly, while Microsoft ( MSFT ), Tesla ( TSLA ), and Palantir among other heavyweight tech stocks, weakened.

Marvell ( MRVL) surged about 12% in pre-market trading. Following a 32% rally in the previous session, the stock continued to climb today. On the news front, Nvidia CEO Jensen Huang previously stated that Marvell could become the next chip company to reach a trillion-dollar market capitalization, continuing to boost market focus on its AI chip and data center businesses.

GameStop ( GME) rose over 13% in pre-market trading. GameStop reported its first-quarter results, with revenue and profit growing year-over-year, and announced a share buyback program of up to $2 billion. The company's first-quarter net profit increased significantly, with growth in its collectibles business being the primary driver.

Market Headlines

Tensions between the U.S. and Iran flared up again, sending oil prices higher in pre-market trading. The U.S. military stated that Iran launched missiles and deployed drones toward Kuwait and Bahrain, after which the U.S. struck Iranian military facilities on Qeshm Island in the Strait of Hormuz. Kuwait International Airport was briefly closed following an attack, as market concerns over energy supply risks in the Middle East intensified.

The U.S. plans to impose additional tariffs on 60 economies. The Office of the U.S. Trade Representative (USTR) stated that because some trading partners failed to effectively combat the import of products made with forced labor, the U.S. intends to levy additional tariffs of 10% or 12.5% on goods from the affected economies, including major trading partners such as Canada, Mexico, the UK, Taiwan, China, Japan, South Korea, and India.

The U.S. ISM Services PMI will be released today. The consensus estimate for the ISM Services PMI is 53.7, following a previous reading of 53.6. The data will provide forward-looking clues for Friday's non-farm payrolls report.

The Federal Reserve's Beige Book will be released on the afternoon of June 3, ET. Markets will focus on regional business descriptions of employment, wages, consumption, and price pressures to gauge whether high oil prices and sticky inflation continue to influence the Fed's policy trajectory.

Key Data & Events Preview

9:45 AM ET, June 3: U.S. S&P Global Services PMI Final (May).

10:00 AM ET, June 3: U.S. ISM Services PMI (May) and Factory Orders (April).

10:30 AM ET, June 3: U.S. EIA Crude Oil Inventories.

2:00 PM ET, June 3: Federal Reserve releases Beige Book.

After-market, June 3 ET: Broadcom and CrowdStrike report earnings.