Wall Street kicked off June with stock futures advancing and major indexes extending a record-breaking rally driven by technology and AI plays. The Nasdaq Composite surged more than 8% in May, capping its best two‑month stretch since 2002 after April’s 25% jump. The S&P 500 added about 5% and the Dow rose nearly 3%, with all three benchmarks touching fresh closing highs heading into the weekend. Monday’s pre‑market showed the Dow up 0.4%, the S&P 500 up 0.2%, and the Nasdaq 100 also 0.2% higher, keeping the momentum alive.
However, investor risk appetite was tempered by a flare‑up in U.S.–Iran hostilities. Over the weekend, U.S. warplanes struck Iranian radar and drone installations, and Iran’s Revolutionary Guard said it retaliated.
Oil markets reacted sharply: Brent crude jumped 3.1% to almost $94 a barrel, while West Texas Intermediate rose 3% to around $90, reversing a 17% monthly drop in May for WTI, the largest since April 2025. The dollar edged 0.1% higher against a basket of currencies, and the 10‑year Treasury yield inched up to 4.47% as money shifted toward safe havens.
President Trump stated he would convene advisers for a “final determination” on next steps and called for the immediate reopening of the Strait of Hormuz. Deutsche Bank’s Jim Reid noted that the conflict has been running for 54 days since a ceasefire push began, warning, “We’ve never felt closer to a deal but potentially never felt closer to it all falling apart.”
Bitcoin declined on Monday, with analysts attributing the move to reduced risk appetite triggered by the U.S.–Iran tensions. The cryptocurrency often trades in sympathy with broader risk‑on/risk‑off dynamics, and the heightened geopolitical uncertainty prompted some short‑term selling.
Attention this week also turns to Friday’s nonfarm payrolls report, a key input for Federal Reserve interest rate expectations. With earnings season largely over, markets are in a holding pattern, balancing strong tech momentum against unresolved Middle East tensions.
