U.S. stock futures traded lower in the overnight session heading into Tuesday as the fragile ceasefire between Israel and Iran faced new strains. As of 9.11 p.m ET, S&P 500 futures fell 0.26%, Nasdaq 100 futures declined 0.36%, and Dow futures dropped 0.29%. Iran's chief negotiator, Mohammad Bagher Ghalibaf, reportedly said the U.S. was "neither seeking a ceasefire nor seeking dialogue," even as U.S. President Donald Trump stated that talks between the two countries are progressing. Iran and Israel paused attacks on each other on Monday following Trump's appeal, but Iran stated it will resume attacks against Israel if Hezbollah is attacked. The developments follow over 100 days of conflict in the Middle East, with Israel conducting a large-scale strike on Monday despite Trump's warnings to stand down.
U.S. Markets Close Mixed on Monday
On Monday, the S&P 500 closed 0.30% higher at 7,405.73, while the Nasdaq Composite gained 0.86% to close at 25,929.66. The Dow Jones Industrial Average declined 0.16%, losing about 80 points to close at 50,786.01. Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), Invesco QQQ Trust (QQQ), and SPDR Dow Jones Industrial Average ETF Trust (DIA) traded lower at the time of writing. The iShares 20+ Year Treasury Bond ETF (TLT) traded flat.
Israel and Iran Pause Attacks Following Trump Appeal
Both Iran and Israel said on Monday they had paused attacks on each other following Trump's appeal. Israel was attacked over the weekend in response to its military action in Lebanon. Israel retaliated by carrying out a "large-scale strike on strategic defense systems" on Monday, as per the country, despite warnings from Trump to stand down. Iran flagged that it would resume attacks against Israel if the latter continued to attack Hezbollah. Iran's chief negotiator, Mohammad Bagher Ghalibaf, reportedly said the U.S. was "neither seeking a ceasefire nor seeking dialogue," even as Trump said talks between the two countries are progressing.
Chip Stocks Recover on Monday
Chip and technology stocks recovered on Monday, helping lift the broader market after a sharp selloff last week. Broadcom Inc. (AVGO) closed up nearly 3%, paring some of the declines from last week, while Nvidia Corp. (NVDA) edged up 1.7% at close. Brian Kersmanc, portfolio manager at GQG Partners, said on CNBC on Monday that many semiconductor stocks are being treated as fundamentally different when, in reality, they often behave like commodities. He noted that memory chip prices surged as much as 15-fold over the past year.
Apple Shares Decline After Developer Conference
Shares of Apple Inc. (AAPL) slipped nearly 2% on Monday at close and continued to decline in the overnight session after its announcements at its developer conference, including revamped 'Siri AI' and new child safety features, failed to spark investor interest.
Applied Digital Announces Data Center Lease Agreement
Shares of Applied Digital Corp. (APLD) gained more than 8% in after-hours trading on Monday after the company announced a new long-term lease agreement at Delta Forge 2 with an American investment-grade hyperscaler.
Galaxy Digital Shares Surge on AI Infrastructure Update
Shares of Galaxy Digital Inc. (GLXY) soared more than 21% on Monday after CEO Mike Novogratz provided updates on its AI infrastructure business, noting that the company expects to have all the capacity at its West Texas data center leased within the next few months.
Paramount Skydance Proposes Antitrust Remedies
Paramount Skydance Corp. (PSKY) jumped onto the retail radar after reports emerged that indicated the company had proposed potential remedies to settle an antitrust probe by California and several other states concerning its $110 billion acquisition of Warner Bros. Discovery Inc. (WBD).
Economic Data Releases Expected This Week
Concerns over rising inflation and interest rates remain following stronger-than-expected nonfarm payrolls data released on Friday. Investors will be watching for the May Consumer Price Index and the Producer Price Index, expected this week, to gain further insights into the inflation outlook. Oil futures traded lower in the overnight session, with Brent crude futures expiring in August declining about 0.34% to trade at around $93.93 a barrel at the time of writing, while WTI crude futures expiring in July fell about 0.36%, trading around $90.99 a barrel. Yields on the 10-year Treasury rose to 4.576%, while gold prices fell to around $4,323.47 per ounce.
FAQ
What did Iran's chief negotiator say about U.S. ceasefire efforts?
Iran's chief negotiator, Mohammad Bagher Ghalibaf, reportedly said the U.S. was "neither seeking a ceasefire nor seeking dialogue," even as U.S. President Donald Trump stated that talks between the two countries are progressing.
How did U.S. stock markets perform on Monday?
On Monday, the S&P 500 closed 0.30% higher at 7,405.73, the Nasdaq Composite gained 0.86% to close at 25,929.66, and the Dow Jones Industrial Average declined 0.16% to close at 50,786.01. Chip and technology stocks recovered, with Broadcom closing up nearly 3% and Nvidia up 1.7%.
