Key insights
- US stock futures opened higher, building on record highs from the previous week, driven by Nvidia's expansion into the PC market with its new RTX Spark superchip. This news boosted Nvidia, Microsoft, HP, and Dell, but pressured competitors like Qualcomm, Intel, and AMD. Separately, Berkshire Hathaway's acquisition of Taylor Morrison Home added a notable event. Rising oil prices due to geopolitical tensions also contributed to market dynamics.
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Stock futures gained Monday to kick off a new month of trading after major indexes ended May at record highs, with news that Nvidia was entering the PC business powering the latest tech-stock advance.
Dow Jones Industrial Average, S&P 500, and Nasdaq 100 futures pointed up 0.6%, 0.3%, and 0.3%, respectively, about 90 minutes before the opening bell.
The three leading U.S. indexes finished Friday at record highs as shares of Dell Technologies led a tech-stock advance and oil prices pulled back on optimism of a U.S.-Iran peace deal. The blue-chip Dow, benchmark S&P 500, and tech-heavy Nasdaq Composite ended the day up a respective 0.7%, 0.2%, and 0.2%, and the S&P 500 ended higher for a ninth straight week.
Shares of Nvidia (NVDA), the world's most valuable company, rose 2.5% before the bell after CEO Jensen Huang unveiled the firm's new RTX Spark superchip at the Computex conference in Taiwan, and said it will be partnering with the likes of fellow Magnificent Seven member Microsoft (MSFT), HP (HPQ), and Dell Technologies (DELL) to produce new PCs using the chip. Microsoft, Dell, and HP shares advanced a respective 4%, 4.5%, and 1%.
U.S.-listed shares of Arm Holdings (ARM), which will be collaborating with Nvidia on the chip, and IBM (IBM) soared 12% and 13%, respectively, but Qualcomm (QCOM), Intel (INTC), and Advanced Micro Devices (AMD)—semiconductor firms that lead the market for PC chips—sank 9.5%, 6.5%, and 4% following the news.
Elsewhere, shares of Taylor Morrison Home (TMHC) soared 23% after Berkshire Hathaway (BRK.A; BRK.B) acquired the firm in an all-cash deal with a total enterprise value of $8.5 billion. Berkshire shares were little changed.
Oil prices rose Monday as the U.S.-Iran ceasefire once again appeared on shaky ground, with the countries launching fresh military strikes at each other, and as Israel expanded operations against Iran-backed Hezbollah in Lebanon. West Texas Intermediate futures, the U.S. crude oil benchmark, jumped 3.4% to $90.35 a barrel in recent trading, while front-month contracts of Brent crude, the global benchmark, gained 2.8% to $93.70. Prices sank roughly 10% last week but still are up by nearly a third since the Middle East fighting began at the end of February.
The 10-year Treasury yield, which influences interest rates on mortgages and other consumer loans, was at 4.46% in recent trading, up from 4.44% at Friday's close.
Gold futures slipped 1.2% to $4,540 an ounce. Bitcoin was at $72,600, down from overnight highs above $74,000. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, was 0.2% higher to 99.08.
What to Expect in Markets This Week: The May Jobs Report, Plus Tech and Retailer Earnings
Investor focus will shift from Wall Street to Main Street over the course of the week, with quarterly results from a few big names in tech and retail landing ahead of a key labor market update.
May jobs numbers are slated to arrive Friday, capping off a confusing period for labor economists. Employers hired vastly more than expected in April and May, but experts are divided on what to make of the data. Some economists believe the labor market is rallying after a sluggish 2025. Others say the growth reflects surging demand for health care workers, brought on by an aging population, rather than economic expansion. They're also unsure if recent data has captured how war with Iran is altering the economy.
Unemployment remains low by historic standards. But job hunting is requiring more endurance than it once did. A quarter of unemployed people have been looking for work for more than a year, according to one recent survey.
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Analysts wonder whether jobs numbers and other economic indicators will move markets more under new Fed Chair Kevin Warsh. Warsh, who is slated to preside over his first Fed policy committee meeting in mid-June, believes the Fed shares too much information about its approach, and then becomes beholden to the public's expectations. If investors hear less about inflation and interest rates from the Fed, they may rely more on alternative indicators for clues, analysts said.
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-Sarina Trangle
Stock Futures Rise to Begin June Trading After Indexes Close at Records
Futures contracts connected to the Dow Jones Industrial Average were 0.4% higher.
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S&P 500 futures pointed up 0.3%.
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Nasdaq 100 futures also were 0.3% higher.
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