Stock market futures rebounded Monday morning after a brutal Friday, with the Nasdaq 100 futures gaining 1.6% and the S&P 500 futures up 0.8%, even as oil surged on renewed Iran-Israel tensions that threatened a fragile ceasefire in the Middle East.
Quick Facts
- The Nasdaq Composite plunged 4.18% on Friday, while the S&P 500 sank 2.64% and the Dow fell 695 points, marking the worst day for stocks since April 2025.
- Oil prices jumped more than 3%, with West Texas Intermediate crude rising to around $93-94 per barrel following military strikes between Iran and Israel.
- Iran announced it had ended military operations against Israel after President Trump said both nations were “looking to do an immediate ceasefire.”
- Chip stocks, which led Friday’s selloff, rebounded sharply in premarket trading, with Micron Technology up more than 5% and the semiconductor ETF gaining 4%.
Friday’s market decline was triggered by a stronger-than-expected May jobs report that fueled concerns about persistent inflation and higher interest rates. The tech-heavy Nasdaq suffered its worst day in over a year as investors pulled back from high-flying AI stocks that had dominated the market’s recent rally.
The rebound Monday came as traders reassessed the geopolitical situation after Iran and Israel exchanged military strikes over the weekend. Iran’s Ministry of Foreign Affairs told CNBC that the country’s military had ended operations against Israel, though it warned of potential escalation if Israel continued attacking Lebanon. President Trump said negotiations between the two sides were proceeding and that “things should move quickly” toward a ceasefire.
Oil prices initially surged as the Israeli Air Force hit military targets in Iran in response to Iranian missile attacks. West Texas Intermediate futures advanced more than 3% to around $93-94 a barrel, while Brent crude climbed nearly 4% to $96 per barrel. However, oil pared some gains after Trump’s ceasefire comments, suggesting markets were pricing in reduced conflict risk.
Semiconductor stocks led the premarket recovery, with chip stocks rebounding sharply from Friday’s rout. Micron, Nvidia, and Broadcom all rose in early trading, signaling that investors were returning to the sector that had driven much of this year’s market gains before the profit-taking on Friday.
The week ahead will be eventful for markets. Investors are awaiting May inflation data on Wednesday, which could influence whether the Federal Reserve raises interest rates this year. Additionally, Elon Musk’s SpaceX is set for its long-awaited initial public offering on Friday, an event many analysts view as a potential test of investor appetite for growth stocks in the current environment.
Sources
- Wall Street Journal — Friday’s stock market decline, futures gains Monday, oil price surge, Iran-Israel ceasefire developments.
- CNBC — Futures rebound, chip stock recovery, Iran’s announcement of ended military operations, Trump’s ceasefire comments, oil price movements.
- Investopedia — Friday’s index declines, premarket futures movements, oil price surge, cryptocurrency rebound.
- Reuters — Friday’s market losses with specific index percentages and point declines.
