Editor’s Note: The future prices of benchmark tracking ETFs, and the headline were updated in the story.
U.S. stock futures advanced on Monday, as the Nasdaq 100, S&P 500, and the Dow Jones indices rose, following Friday’s higher close.
This follows an announcement of a peace agreement with Iran by President Donald Trump, which led to a decline in crude oil futures. He said that the deal was “now complete,” adding, “I hereby fully authorize the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade.”
In this truncated trading week with markets closed on Friday, investors will eye the Federal Reserve’s decision on interest rates with the new chairman, Kevin Warsh, on Wednesday.
Meanwhile, the 10-year Treasury bond yielded 4.44%, and the two-year bond was at 4.03%. The CME Group's FedWatch tool‘s projections show markets pricing a 97.4% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.
| Index | Performance (+/-) |
| Dow Jones | 0.89% |
| S&P 500 | 1.25% |
| Nasdaq 100 | 2.11% |
| Russell 2000 | 1.64% |
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 1.29% at $751.35, while the QQQ advanced by 2.13% to $736.71.
Stocks In Focus
Space Exploration Technologies Corp
- Space Exploration Technologies Corp. (NASDAQ:SPCX) was 5.90% higher in premarket on Monday following its debut on Friday. The listing propelled CEO Elon Musk‘s wealth, making him the world’s first trillionaire.
Taiwan Semiconductor Manufacturing
- Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) rose 3.77% as it reported a 1.5% increase in the month-on-month consolidated net revenue for May 2026, and 30.1% year-over-year gain as compared to May 2025.
- Benzinga’s Edge Stock Rankings indicate that TSM maintains a strong price trend in the long, medium, and short terms, with a solid quality score.
Tower Semiconductor
- Tower Semiconductor Ltd. (NASDAQ:TSEM) rose by 5.01% as it signed a multi-year InP supply deal with IQE.
- Benzinga’s Edge Stock Rankings indicate that TSEM maintains a strong price trend in the short, medium, and long term, with a bad value score.
Red Cat Holdings
- Red Cat Holdings Inc. (NASDAQ:RCAT) advanced by 4.79% after unveiling Hellcat, a small unmanned aircraft system built on its Black Widow platform.
- Benzinga’s Edge Stock Rankings indicate that RCAT maintains a weak price trend in the long and medium terms, but a strong trend in the short term, with a solid value score.
Micron Technology
- Micron Technology Inc. (NASDAQ:MU) surged 8.19% as Wolfe Research hiked its price target to $1,250 from $550 and maintained an "Outperform" rating.
- Benzinga’s Edge Stock Rankings indicate that MU maintains a strong price trend in the short, medium, and long terms, with a good growth score.
Dave and Buster's Entertainment
- Dave and Buster's Entertainment Inc. (NASDAQ:PLAY) was up 0.30% as analysts expect it to report earnings of 61 cents per share on revenue of $580.46 million, after the closing bell.
- Benzinga’s Edge Stock Rankings indicate that PLAY maintains a weak price trend in the long and medium terms but a weak trend in the short term, with a poor value score.
Cues From Last Session
Most sectors on the S&P 500 closed on a positive note, with financial, materials, and utilities stocks recording the biggest gains on Friday. However, health care stocks bucked the overall market trend, closing the session lower.
| Index | Performance (+/-) | Value |
| Dow Jones | 0.70% | 51,202.26 |
| S&P 500 | 0.50% | 7,431.46 |
| Nasdaq Composite | 0.31% | 25,888.84 |
| Russell 2000 | 0.79% | 2,943.99 |
Insights From Analysts
Mohamed El-Erian paints a picture of a complex macroeconomic landscape where the U.S. economy and stock market are driven by divergent forces.
On one hand, economic data reveal sticky inflationary pressures. El-Erian highlights that “headline PPI inflation for May came in hotter than expected at 6.5%,” forcing markets to adjust to a harsher reality.
Consequently, investors have largely “abandoned prior hopes for 2026 Fed rate cuts and are now pricing in the possibility of a rate hike by year-end.”
Despite these underlying economic anxieties and a “notably divided” Federal Reserve facing a critical leadership transition, the stock market has found immense fuel in monumental corporate milestones. El-Erian points to the massive SpaceX IPO as a primary catalyst that “boosted stocks more generally.”
Ultimately, El-Erian expects the market to remain highly sensitive to upcoming monetary policy. He cautions that all eyes will be on the Fed’s next moves to see how they frame the path forward amid an “acceleration in inflation.”
For investors, the outlook requires navigating a delicate balance between powerful, tech-driven equity euphoria and the tightening grip of a central bank facing deep needs for “reform and modernization.”
Upcoming Economic Data
Here's what investors will be keeping an eye on this week.
- On Monday, May’s industrial production and capacity utilization data will be out by 9:15 a.m., and June’s Home builder confidence index data will be out by 10:00 a.m. ET.
- On Tuesday, May’s import price index, import price index minus fuel, housing starts, and building permits data will all be released by 8:30 a.m. ET.
- On Wednesday, May’s U.S. retail sales and retail sales minus autos data will be released by 8:30 a.m. ET.
- May’s pending home sales and April’s business inventories data will be out by 10:00 a.m., the FOMC interest-rate decision will be released by 2:00 p.m., and Fed Chairman Warsh will hold a press conference at 2:30 p.m. ET.
- On Thursday, initial jobless claims for the week ending June 13, June’s Philadelphia Fed manufacturing survey, and May’s leading index data will all be released by 8:30 a.m. ET.
- On Friday, there are no economic reports scheduled due to the Juneteenth federal holiday.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading lower in the early New York session by 5.2`% to hover around $80.46 per barrel.
Gold Spot US Dollar rose 2.83% to hover around $4,338.63 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.19% lower at the 99.5560 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.88% higher at $65,646.71 per coin, as per the last 24 hours.
Asian markets closed higher on Monday, as Australia's ASX 200, India’s Nifty 50, Hong Kong's Hang Seng, Japan's Nikkei 225, South Korea's Kospi, and China’s CSI 300 indices advanced. European markets were also higher in early trade.
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