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Investment Daily: US stocks fell amid renewed geopolitical concerns

4 June 2026

Key takeaways

  • US stocks and Treasuries fell.
  • European stocks and government bonds fell.
  • Asian stocks traded mixed.

Markets

US stocks fell on Wednesday amid renewed concerns over geopolitical tensions in the Middle East. The S&P 500 lost 0.7%.   

US Treasuries declined (yields rose) following higher oil prices and upbeat macro data. 10-year yields climbed 5bp to 4.49%.

European stocks fell on Wednesday amid ongoing geopolitical tensions. The Euro Stoxx 50 shed 0.9%. The German DAX was down 1.3% and the French CAC lost 0.7%. In the UK, the FTSE 100 fell 0.4%.

European government bonds declined (yields rose) on higher oil prices. 10-year German bund yields rose 7bp to 3.04%, while 10-year French bond yields were up 8bp to 3.67%. In the UK, 10-year gilt yields gained 7bp to 4.93%.

Asian stock markets traded mixed on Wednesday. Japan’s Nikkei 225 surged 2.5%, driven by strong chip and tech shares. China’s Shanghai Composite added 0.2%, whereas Hong Kong’s Hang Seng largely pared gains in the prior session, ending 1.6% lower. Elsewhere, India’s Sensex fell 0.4%. Korea’s financial market was shut for a holiday.

Crude oil prices extended gains on Wednesday. WTI for July delivery settled 2.4% higher at USD96.0 a barrel.

Key Data Releases and Events

Releases yesterday

In the United States, the ISM Services Index rose to 54.5 in May, from 53.6 in April, contrasting with the decline in the PMI. The ADP Employment increased by 122k mom in May, compared to a 105k gain in April, suggesting some improvement in the labour market.

Releases due today (4 June 2026)

No major releases today. 

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