U.S. stock futures pointed higher Monday morning after the Nasdaq $NDAQ Composite suffered its worst single-day drop since April 2025, even as renewed fighting between Iran and Israel sent oil prices higher.
Bond markets reflected growing conviction that the Federal Reserve could move to raise rates before year's end
Bloomberg / Getty Images
U.S. stock futures pointed higher Monday morning after the Nasdaq $NDAQ Composite suffered its worst single-day drop since April 2025, even as renewed fighting between Iran and Israel sent oil prices higher.
Nasdaq 100 futures pointed to a 1.2% opening gain, with S&P 500 futures up 0.6% and futures tied to the Dow Jones Industrial Average adding roughly 100 points. Those moves followed Friday's steep losses, in which the Nasdaq shed 4.2% and the S&P 500 fell 2.6%.
Crude oil surged Monday after Iran fired missiles at Israel on Sunday and Israeli forces responded Monday with what the IDF characterized as a sweeping attack on Iranian defense infrastructure. WTI briefly topped $92 a barrel, a gain of more than 1%, while Brent futures reached roughly $94.69. The rally cooled after President Donald Trump announced that both nations "are looking to do an immediate ceasefire" and pressed them to halt hostilities, with prices retreating from their intraday peaks.
Semiconductor stocks drove premarket gains on Monday. Micron $MU Technology, which had tumbled 13% on Friday, was trading more than 5% higher before the bell, while Nvidia $NVDA and Broadcom $AVGO also posted gains. Friday's 10% collapse in the iShares Semiconductor ETF — its steepest single-day drop in over six years — was being partially reversed, with the fund up close to 4% ahead of Monday's open.
A stronger-than-forecast May jobs report and a broad retreat in AI-related equities combined to spark Friday's rout. Across Asia, markets bore the brunt of that weakness on Monday: South Korea's Kospi, weighed down by semiconductor giants Samsung Electronics and SK Hynix, tumbled more than 8%, while Tokyo's Nikkei 225 gave up 3.85%, closing at 64,024.6.
Bond markets reflected growing conviction that the Federal Reserve could move to raise rates before year's end, pushing Treasury yields higher Monday. Wednesday's release of May consumer price data is seen as a key input into how policymakers might proceed.
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