Stock Market Live June 4, 2026: S&P 500 (SPY) Fall as Broadcom Sinks

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The Last Time the S&P 500 Ran Up this Fast was Before the 1987 Crash

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It pays to be cautious in the market.

“The S&P 500 was up more than 16% over April and May, a magnitude that’s only happened in four other instances since World War II, Deutsche Bank Research found,” as noted by CNBC. “The last time the S&P 500 rose like it is now outside of a recession period was the few months before the 1987 crash.”

There are also other signs of a potential crash.

For example, if we look at the Case Shiller P/E ratio, it currently stands at 42.53 – its second-highest point since its 1999 high of 43.21. That was also right before the dot-com crash.  You can see that chart here.

Markets are wildly mixed this morning.

The S&P 500 is down by 0.36%, or by 27 points. The SPDR S&P 500 ETF (SPY | SPY Price Prediction) is down by 0.3%, or by $2.25. The Dow is up by 0.89%, or by 460 points. The Nasdaq is down by 1.15%, or by 353 points. Oil is down by $3.19 at $92.83. Bitcoin is down by $527 at $63,512.

Let’s start with the Dow.

A day after slipping on higher oil prices and yields, the Dow is climbing as investors shift away from the tech sector and instead jump into blue-chip and defensive stocks. Plus, new news of a ceasefire and cooling energy prices are pumping the index.

Meanwhile, the tech-heavy Nasdaq is sinking following an underwhelming report from Broadcom (NASDAQ: AVGO), which is down 13% in premarket. Fueling a good deal of downside in the name, CEO Hock Tan did not raise the company’s full-year target of $100 billion in AI chips. For its most recent quarter, the company did post adjusted EPS of $2.44, as compared to estimates of $2.40. Revenue of $22.19 billion was below estimates of $22.27 billion.

Not helping, HSBC analysts flagged a slide in chip prices, coupled with a slowdown in AI spending and rollout, as among their “biggest worries,” as noted by CNBC.

Market Movers: Five Below Plunges $23

Shares of Five Below (NASDAQ: FIVE) are down 10%, or by $23 a share, after solid earnings.

The company’s EPS of $2.22 beat by 43 cents, and revenue of $1.28 billion (up 31.9% year over year) beat by $50 million. It also delivered a significant improvement in profitability. Operating income climbed to $154.2 million from $50.8 million in the same period last year. It even raised its full-year forecast. Unfortunately, some analysts are questioning its valuation.

For example, as noted by Investing.com, “Mizuho noted that investors may question the size of the fiscal 2026 guidance increase, with second-half estimates unchanged. Current sales trends appear strong in the second quarter to date, though management expressed caution about the consumer spending environment.”

Analysts at Mizuho also reiterated an outperform rating on Nvidia (NASDAQ: NVDA), noting that they remain bullish on the optical/networking market.

Citi analysts reiterated a buy rating on Oracle (NYSE: ORCL), raising their price target to $330 from $320. The firm noted, “While investor concerns linger on financing/execution of capacity buildouts, we believe ORCL remains on track to deliver one of the strongest revenue/EPS accelerations in tech as large AI contracts ramp,” as quoted by CNBC.