U.S. stock futures rose on Monday morning after the Nasdaq Composite suffered its worst single-day drop since April 2025, even as fresh clashes between Iran and Israel sent oil prices higher.
Contracts on the Nasdaq 100 were pointing to an initial 1.2% gain, with S&P 500 contracts rising 0.6% and those linked to the Dow adding about 100 points. Those moves followed sharp losses on Friday, in which the Nasdaq Composite lost 4.2% and the S&P 500 fell 2.6%, the index’s worst single-session drop in about 10 months.
Semiconductor names boosted premarket gains, according to CNBC. Micron Technology, which had fallen 13% on Friday, was trading up more than 5% before the bell, while Nvidia and Broadcom also posted gains. Friday’s 10% collapse in the iShares Semiconductor ETF – its biggest single-day drop in more than six years – was partially reversing, with the fund up about 4% ahead of Monday’s open.
A better-than-expected May jobs report and a broad pullback in AI-related stocks combined to cause Friday’s decline, according to the Wall Street Journal. Across Asia, markets bore the brunt of that weakness on Monday: South Korea’s Kospi, pressured by semiconductor giants Samsung Electronics and SK Hynix, fell more than 8%, while Tokyo’s Nikkei 225 gave up 3.85%, closing at 64,024.6.
Crude oil rose after Iran fired missiles at Israel on Sunday and Israeli forces responded on 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 hit around $94.69. The rally cooled after President Donald Trump announced that both nations were “seeking an immediate ceasefire” and pressured them to stop hostilities, as prices retreated from their intraday highs.
Bond markets reflected growing conviction that the Federal Reserve could move to raise rates before the end of the year, sending Treasury yields higher on Monday. Wednesday’s release of consumer price data for May is seen as a key input into how policymakers might proceed.
“The stock market may be becoming a victim of its own success,” said Callie Cox, chief market strategist at Ritholtz Wealth Management. “The labor market has recovered, but the threat of persistently high inflation appears to be the risk lurking on everyone’s minds.”
He also noted that since the market lows in March, growth- and momentum-oriented strategies have outpaced most other investment styles, an unusual pattern in a high-rate environment that could leave those approaches exposed if inflation proves persistent.