TLDR
- US stock futures rose on Monday, with the Dow Jones up 0.4% and the S&P 500 up 0.2% in pre-market trading.
- The Nasdaq rose more than 8% in May, its best two-month stretch since 2002 on top of April’s 25% gain.
- Strong AI and technology earnings led the record rise during May
- Tensions between the United States and Iran remain unresolved after the weekend strikes, sending oil prices higher
- Friday’s non-farm payrolls report is the main event investors are watching this week
US stock futures rose on Monday as investors looked to extend May’s strong rally into the new month.
Dow Jones futures rose 0.4%, while S&P 500 futures rose 0.2%. Nasdaq 100 futures also rose 0.2% in early trading.
The gains follow a strong close to May. The Nasdaq Composite rose more than 8% last month, and when combined with April’s 25% rise, it represents the index’s best two months since late 2002.
The S&P 500 rose nearly 5% in May. The Dow added nearly 3% over the same period.
The three major indexes closed at record levels to end last week. The rise was largely driven by technology stocks Artificial intelligence chip makers Attracting great interest from investors.
Strong earnings from technology companies were a key driver. Wall Street rewarded many of its favorite names in artificial intelligence and semiconductors.
The US-Iranian conflict adds uncertainty
Despite the upbeat market mood, geopolitical tensions remain a concern. US warplanes bombed Iranian radar sites and drone facilities over the weekend, and Iran’s Islamic Revolutionary Guard Corps said it responded.
President Trump said he would meet with advisers to make the “final decision” on next steps. He also called for the immediate reopening of the Strait of Hormuz, a major route for global energy shipments.
Oil prices It rose after the weekend strikes. Brent crude rose 3.1% to $93.98 per barrel, and West Texas Intermediate crude rose 3% to $90.40 per barrel.
Despite Monday’s rebound, WTI posted its biggest monthly decline since April 2025, falling nearly 17% in May.
The dollar rose 0.1% against a basket of major currencies. The yield on the 10-year Treasury note rose by 2 basis points to 4.47%, as investors moved towards safer assets.
Jim Reid, an analyst at Deutsche Bank, said the outlook for June will depend largely on whether an agreement is reached between the United States and Iran. “We have never felt closer to reaching an agreement, but we probably will never feel closer to its complete collapse,” he said.
Jobs in focus report
Investors will be watching Friday’s non-farm payrolls report closely. The data will provide a fresh read on the labor market and could influence expectations about the Federal Reserve’s interest rate decisions later this year.
Hopes for a peace agreement between Washington and Tehran have helped lift markets in recent weeks. However, the weekend strikes have raised new doubts about how quickly a solution can be reached.
Markets remain in a holding pattern on the geopolitical front, as traders balance strong technology momentum with ongoing uncertainty in the Middle East.
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