Editor’s Note: The future prices of benchmark tracking ETFs, and the headline were updated in the story.
U.S. stock futures rose on Monday, as the Nasdaq 100 and S&P 500, and Dow Jones indices rose, following Thursday's sharp declines.
Over the weekend, the tensions in the Middle East escalated as President Donald Trump said he would press Israeli Prime Minister Benjamin Netanyahu not to escalate tensions with Iran, but Iran and Israel have since then exchanged strikes.
The latest flare-up comes as U.S.-Iran negotiations continue over ending months of conflict. Tehran has insisted that any broader agreement must include a durable ceasefire in Lebanon, where fighting between Israel and Hezbollah has continued despite diplomatic efforts.
Additionally, this week, investors will be eyeing May’s CPI and PPI data.
Meanwhile, the 10-year Treasury bond yielded 4.58%, and the two-year bond was at 4.19%. The CME Group's FedWatch tool‘s projections show markets pricing a 98% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.26% |
| S&P 500 | 0.72% |
| Nasdaq 100 | 1.31% |
| Russell 2000 | 1.34% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Monday. The SPY was up 0.78% at $743.28, while the QQQ advanced by 1.55% to $716.00.
Stocks In Focus
Riskified
- Riskified Ltd. (NYSE:RSKD) was 1.26% higher in premarket on Monday after it disclosed a $75 million buyback plan.
- Benzinga’s Edge Stock Rankings indicate that RSKD maintains a weak price trend in the long term but a strong trend in the medium and short terms.
Nebius Group
- Nebius Group NV (NASDAQ:NBIS) was 2.11% higher after it announced a announced a $2.3 billion or £1.7 billion investment to build out four AI data center sites in the UK.
- Benzinga’s Edge Stock Rankings indicate that NBIS maintains a strong price trend in the short, long, and medium terms, with a poor value score.
Ingredion
- Ingredion Inc. (NYSE:INGR) was 1.95% higher as Tate & Lyle agreed to £2.7 billion or $3.6 billion takeover by INGR.
- Benzinga’s Edge Stock Rankings indicate that INGR maintains a weak price trend in the long, short, and medium terms, with a solid growth score.
Advanced Micro Devices
- Advanced Micro Devices Inc. (NASDAQ:AMD) was 1.81% higher as it announced a £2 billion or $2.66 billion investment in the UK to enhance AI research, infrastructure, and workforce development over five years.
- Benzinga’s Edge Stock Rankings indicate that AMD maintains a strong price trend in the long, medium, and short terms, with good quality score.
SK Telecom
- SK Telecom Co. Ltd. (NYSE:SKM) gained 4.78% as it joined forces with Nvidia Corp. (NASDAQ:NVDA) to build Korea’s gigawatt-scale AI cloud for sovereign, enterprise, and physical AI workloads.
- Benzinga’s Edge Stock Rankings indicate that SKM maintains a strong price trend in the short, long, and medium terms, with a poor growth score.
Cues From Last Session
Sectors on the S&P 500 closed mixed on Friday as consumer staples, utilities, real estate, health care, and financial rose, while information technology, consumer discretionary, material, energy, communication services, and industrials fell.
| Index | Performance (+/-) | Value |
| Dow Jones | -1.35% | 50,866.78 |
| S&P 500 | -2.64% | 7,383.74 |
| Nasdaq Composite | -4.18% | 25,709.43 |
| Russell 2000 | -3.47% | 2,833.50 |
Insights From Analysts
A historic two-month surge in the S&P 500 has triggered a rare, historically flawless bullish signal pointing to massive year-ahead gains.
The S&P 500 recently logged an explosive 19.5% advance over two months. According to Carson Group's Ryan Detrick, this is “one of the best two-month rallies ever”.
Data shows this has only happened seven other times since 1950, and stocks were “never lower 1 month, 3 months, 6 months, or a year later”. Instead, they averaged a massive 40% gain a year later. Looking at the data, Detrick noted, “My oh my”.
Though the S&P 500 just fell 2.6% for its “worst day of the year so far”, Detrick urges calm. “Good time to remember that even the best years have a bad day or two (or more)”, he posted, noting that 22 times the index gained 20% in a year, the average worst day was 3.5%.
Market health remains resilient. Even with a 2.5% weekly drop, “6 sectors were green and more stocks on the S&P 500 gained than fell last week”. History proves temporary volatility rarely derails historic bull runs; in 1997, the index fell nearly 7% in a day but still “gained more than 30% for the year.”
Upcoming Economic Data
Here's what investors will be keeping an eye on this week.
- No data is scheduled to be released on Monday.
- On Tuesday, May’s NFIB optimism index data will be released by 6:00 a.m., and April’s U.S. trade balance data will be out by 8:30 a.m. ET.
- May’s existing home sales report and April’s wholesale inventories data will both be out by 10:00 a.m. ET.
- On Wednesday, May’s consumer price index and core CPI data will be released by 8:30 a.m. ET.
- The monthly U.S. federal budget statement for May will be out by 2:00 p.m. ET.
- On Thursday, initial jobless claims for the week ending June 6, along with May’s producer price index and core PPI data, will all be released by 8:30 a.m. ET.
- On Friday, June’s preliminary consumer sentiment data will be out by 10:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading lower in the early New York session by 4.37% to hover around $94.50 per barrel.
Gold Spot US Dollar fell 0.93% to hover around $4,288.99 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.08% higher at the 100.1480 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.51% higher at $63,145.40 per coin, as per the last 24 hours.
Asian markets closed lower on Monday, as Hong Kong's Hang Seng, India’s Nifty 50, Japan's Nikkei 225, Australia's ASX 200, South Korea's Kospi, and China’s CSI 300 indices fell. European markets were also lower in early trade.
Photo courtesy: Shutterstock
Login to comment