Job Data Sparks Market Volatility 06/03/2026

HOT stories for today

Market wrap:

• Major U.S. stock indexes declined Thursday as investors grappled with escalating tensions in the U.S.–Iran conflict. The Dow Jones Industrial Average dropped nearly 785 points, or 1.6%, putting it on track for a second straight weekly loss and its worst week since October. The S&P 500 fell about 0.6%, while the Nasdaq Composite slipped roughly 0.3%. Eight of the 11 S&P 500 sectors ended lower, led by industrials, materials, and consumer staples, each down more than 2%. Caterpillar fell over 3%, while United Airlines slid about 5%. 
• Oil prices surged as the conflict disrupted global fuel flows, and tanker traffic through the Strait of Hormuz remained largely halted. U.S. crude oil topped $80 per barrel, with West Texas Intermediate settling 8.5% higher at $81.01, its highest level since 2024, while Brent crude climbed nearly 5%. The spike reflects fears that the escalating war with Iran could choke off a key shipping route responsible for a significant share of global oil supplies.  For the week, the S&P 500 is on pace to lose about 0.7%, while the Dow has fallen roughly 2.1%. The Nasdaq has held up better, gaining around 0.4%. Markets in Asia were mixed on Friday as oil held above $80 with the Iran conflict entering a sixth day, while Bitcoin also pulled back. Investors now turn to February’s nonfarm payrolls report due at 8:30 a.m. ET. Economists surveyed by Dow Jones expect job growth of about 50,000, down from 130,000 in January, with the unemployment rate seen holding steady at 4.3%.

Cloud Stocks Buck Market Slide

• Cloud and software shares were among the few bright spots on Thursday as the broader market came under pressure. The WisdomTree Cloud Computing Fund (WCLD) rose 2.7%, marking its best day since late April. Okta (OKTA) helped lead the move after topping Wall Street’s fourth-quarter estimates, while Wix.com (WIX), MongoDB (MDB), and SailPoint (SAIL) also posted strong gains.
• Okta’s rally followed better-than-expected results released late Wednesday, even as the company offered softer first-quarter guidance. Analysts at JPMorgan and UBS have recently highlighted Okta and Zscaler (ZS) as software names they believe are relatively well-positioned against AI disruption. Even after Thursday’s rebound, the group remains under pressure this year. WCLD is down about 16.2% in 2026 as investors weigh whether advances in artificial intelligence could threaten traditional cloud and SaaS business models.

Stocks on the move:

• Costco Wholesale (COST): Shares slipped less than 1% in after-hours trading after the warehouse retailer reported fiscal second-quarter results that narrowly topped expectations. Costco posted earnings of $4.58 a share on revenue of $69.6 billion, compared with LSEG consensus estimates of $4.56 and $69.29 billion. Membership fee revenue rose 13.6% from a year earlier to $1.36 billion.
• Marvell Technology (MRVL): Shares surged 14% after the chipmaker posted better-than-expected quarterly results, helped by demand tied to artificial intelligence. Marvell reported adjusted earnings of 80 cents a share on revenue of $2.22 billion, ahead of analysts’ expectations for 79 cents and $2.21 billion, according to LSEG. Management also said year-over-year revenue growth is expected to accelerate each quarter in fiscal 2027.
• Gap (GAP): Shares fell nearly 8% after the apparel retailer reported fourth-quarter earnings of 45 cents a share, just below analysts’ forecast for 46 cents, according to LSEG. Revenue was in line with expectations at $4.24 billion.
• Samsara (IOT): Shares jumped more than 11% after the telematics software company issued upbeat guidance. Samsara forecast full-year adjusted earnings of 65 cents to 69 cents a share and revenue of $1.97 billion to $1.98 billion, above LSEG consensus estimates for 59 cents and $1.92 billion. The company also said it is using AI to automate workflows and improve operations.

Watchlist: MRVL, COST, IOT, GAP, TEN, GWRE, OKTA, NVDA, AAPL

Key Economic Events Today:

EST time

08:30 am: USD Non Farm Employment Change
08:30 am: USD Unemployment Rate
08:30 am: USD Retail sales, Core Retail Sales
10:00 am: USD Business Inventories
10:15 am: USD FOMC Member Daly, Paulson Speaks
01:30 pm: USD FOMC Member Hammack Speaks



Earnings

BMO (Before Market Open): Embrarer SA (EMBJ), Algonquin Power (AQN) Tsakos Energy (TEN)

 

The TEFS Analyst team wishes you a successful day!