U.S. stock futures rose on Tuesday as chip stocks rebounded for a second day from last Friday’s rout and oil prices pulled back on hopes a U.S.-Iran deal is nearing.
S&P 500 futures were up about 0.4%, while the Nasdaq 100 futures rose 0.8%. Dow Jones Industrial Average futures advanced 96 points or 0.2%.
Micron Technology was higher by 5% in early trading, adding to a 10% comeback on Monday. The shares tumbled about 20% in the two days ending last week, including a 13% rout on Friday. Qualcomm was up 3% in early trading, a second day of gains after falling 11% on Friday. The iShares Semiconductor ETF was up 2% following a 6% rebound on Monday. The ETF tumbled 10% on Friday for its worst day in six years as investors feared the AI-driven run in chips had risen too far, too fast.
West Texas Intermediate crude futures shed almost 2% to trade under $90 a barrel as President Donald Trump said a deal between the U.S. and Iran could be reached in “two or three days” that opens the Strait of Hormuz “immediately.”
Iran on Monday halted military strikes against Israel, but warned it would resume attacks if Israeli forces continue operations in Lebanon, Tehran’s foreign ministry told CNBC on Monday. Hours later, Israeli Prime Minister Benjamin Netanyahu said the conflict with Iran and Hezbollah was “not yet over.”
In Asia, Japan’s Nikkei 225 was over 2% higher, ending the trading day at 65,416.63, while South Korea’s Kospi rebounded from Monday’s slump, jumping 8.18% to 8,096.93. Hong Kong’s Hang Seng Index edged 0.15% higher, while the mainland’s CSI 300 was up 1.87% to 4,801.81. Australia’s benchmark S&P/ASX 200 was down 0.24% to 8,604.2.
Chip stocks led the S&P 500 higher in regular trading Monday, with the index rising 0.3%. The tech-dominant Nasdaq Composite climbed 0.86%. Both averages clawed back some of their losses from last week’s tech rout. The blue-chip Dow, on the other hand, bucked the trend to shed 80.77 points, or 0.16%.
Although the artificial intelligence and chip trade has been the primary market driver on Monday and in other recent sessions, Brian Kersmanc, portfolio manager at GQG Partners, offered some skepticism over the trend’s longevity.
“What the issue is on a longer-term basis is sustainability,” Kersmanc said on CNBC’s “Closing Bell: Overtime” on Monday afternoon. “So, how much further does this sustain on a longer-term basis?”
“At the end of the day, a lot of these chip names are commodities,” the portfolio manager added. “And if you look at it in terms of a commodity, when you have a rapid price increase that you had — in some areas of memory, you had a 15x price increase over the course of last year or so — if I were to recontextualize that … a 15x increase in energy, go from $60 a barrel to $900 a barrel, how many energy stocks would people be buying right now?”
OpenAI confidentially filed for an IPO late Monday, adding to enthusiasm around the AI trade. Space and AI play SpaceX is set to make its debut on Friday in what will be the largest IPO ever. The offering is seen by some as adding fuel to the AI-driven bull market, but some investors are wary that it could also mark a top in the trend with its $1.75 trillion valuation.
Trade deficit fell 49% this year as tariffs take root
In the year since President Donald Trump announced his “liberation day” tariffs, the U.S. trade deficit has been cut about in half.
The goods and services imbalance totaled $55.9 in April, bringing the year-to-date deficit down $213.5 billion, or 49%, from a year ago, the Commerce Department reported Tuesday. The monthly shortfall represented a $700 billion decrease from March and was below the Dow Jones consensus outlook for $56.1 billion.
— Jeff Cox
Apple conference gets tepid reaction on Wall Street
Analysts were less than bowled over on Monday by Tim Cook’s final keynote as Apple CEO, which centered on artificial intelligence upgrades to its voice assistant robot, Siri.
“We believe investors will be underwhelmed with the offerings,” David Vogt at UBS wrote in a Monday note to clients, saying the upgrades wouldn’t be enough to drive demand for iPhones, which accounted for about half of Apple’s revenues in 2025.
Key Banc’s Brandon Nispel saw “no clear signs of monetization of AI” and only “a slightly better standalone Siri, which is still worse than other [large language models].”
William Power at Baird said the new Siri AI features were “roughly in line” with expectations, though they could prove to be “a massive unlock if executed correctly.”
With rising inflation and falling wage growth and personal savings, Apple is facing headwinds at the consumer level.
Weakening consumer demand is a key risk for Apple, according to Goldman Sachs analyst Micahel Ng.
“Any weakness in the macroeconomic environment could reduce demand for Apple products and services,” he wrote to clients on Monday. “Lengthening replacement cycles due to macroeconomic headwinds, improved product durability, or lackluster product innovation could all negatively impact upgrade demand.”
— Tobias Burns
GSK, J.M. Smucker Company and SailPoint among the stocks making premarket moves
Check out the companies making headlines before the bell:
- GSK, Nuvalent — Shares of U.S. drugmaker Nuvalent rose nearly 39% after U.K.-based biopharmaceutical company GSK announced an agreement to acquire the company for $10.6 billion.
- J.M. Smucker Company — Shares jumped 3.5% after the maker of Smucker’s jam and Jif peanut butter reported fourth-quarter results that topped expectations. Earnings of $2.77 per share, on an adjusted basis, exceeded the $2.64 FactSet consensus estimate. Revenue of $2.27 billion also topped the anticipated $2.26 billion.
- SailPoint —The identity, data and security intelligence platform plunged more than 12% after issuing lackluster full-year guidance, even as its first-quarter earnings exceeded estimates. SailPoint expects adjusted earnings of 30 cents to 34 cents for the full year ending January, while analysts polled by FactSet were anticipating 32 cents. Expected revenue of $1.265 billion to $1.275 billion for the full year came in the low range of the expected $1.27 billion.
Read the full list here.
— Sarah Min
Nuvalent soars after GSK announces acquisition
Shares of U.S. drugmaker Nuvalent rose nearly 39% after U.K.-based biopharmaceutical company GSK announced an agreement to acquire the company for $10.6 billion.
The all-cash deal will value Nuvalent at about $124 per share. Nuvalent is home to two drugs currently under review by the U.S. Food and Drug Administration to treat a form of lung cancer.
In a press release, GSK CEO Luke Miels said the acquisition presents the company with immediate new sales growth opportunities. U.S.-listed shares of the drugmaker were down by 1% in premarket trading Tuesday.
— Davis Giangiulio
European stocks open higher
European shares were in broadly positive territory shortly after the opening bell. The pan-European Stoxx 600 was 0.2% higher, with most sectors and major bourses rising.
The regional Stoxx 600 Technology index added 0.3%, extending its recovery from a tech sell-off that gripped global markets on Friday.
— Chloe Taylor
Asia markets close mostly higher; South Korea’s Kospi pops 8%
Japan’s Nikkei 225 was over 2% higher, ending the trading day at 65,416.63, while South Korea’s Kospi rebounded from Monday’s slump to jump 8.18% to 8,096.93.
Hong Kong Hang Seng Index edged 0.15% higher, while the mainland’s CSI 300 was up 1.87% to 4,801.81. Australia’s benchmark S&P/ASX 200 was down 0.24% to 8,604.2.
— Lee Ying Shan
China’s May shipments to U.S. soar 35% as overall exports jump on tech boost
China’s trade growth held up better than expected in May, as surging AI-related exports helped buffer the economy against disruption from the Iran war, with U.S.-bound shipment logging the strongest jump in five years.
Overall exports rose 19.4% from a year earlier in U.S. dollar value terms, customs data showed Tuesday, accelerating from the 14.1% gain in April. Economists polled by Reuters had pegged growth at 15%.
Shipments to the U.S. soared nearly 35.4% in May from a year earlier, the highest growth since March 2021, according to Wind Information, extending a rebound following a long streak of double-digit declines for the most of last year, pressured by President Donald Trump’s tariffs.
“The war is boosting demand for green exports, such as electric vehicles, batteries, solar products, and AI-related technology goods,” said Shena Yue, senior economist at Oxford Economics, expecting the “outperformance” in high-tech product export growth to persist.”
Read the full story here.
— Anniek Bao
Asia chip-linked shares recover after U.S. peers bounce back
Asian technology stocks rebounded Tuesday, tracking Wall Street’s gains, as investors returned to artificial intelligence-linked names.
South Korean memory chip giant SK Hynix climbed 6.44%, while Samsung Electronics gained 3.38%. Seoul Semiconductor jumped over 12%.
Japanese semiconductor equipment makers also advanced, with Tokyo Electron rising 5.65%, Advantest adding 1.51%, and Renesas Electronics gaining 2.54%.
However, shares of Japanese tech investment giant SoftBank extended their slide, dropping 2%.
“The rotation back to domestic defensives we saw yesterday will be short lived for now,” said Andrew Jackson, an equity strategist at ORTUS Advisors.
While it remains unclear whether the recent pullback will be enough to reset valuations, Jackson said markets were likely to remain volatile through the week as investors brace for the pricing of SpaceX’s highly anticipated initial public offering on Thursday and the start of trading on Friday.
Read the full story here.
— Lee Ying Shan
Pentagon expands list of China military-linked firms to include Alibaba, Baidu and BYD
The Pentagon added a slew of Chinese companies, including Alibaba Group, Baidu Inc and carmaker BYD, to a list of entities it believes have aided the Chinese military, complicating the fragile diplomatic relationship between Washington and Beijing.
The Defense Department published an updated “1260H list” Monday evening stateside — a roster of companies the Pentagon considers affiliated with China’s military or defense industrial base.
The designations do not impose sanctions explicitly, but mean the Defense Department will be prohibited from contracting directly with listed companies starting later this month, and from procuring their products or services through third parties beginning in 2027.
Shares of Alibaba Group declined 1.18%, BYD fell 1.16%, while Baidu was up 1.05%.
Read the full story here.
— Anniek Bao
Japan’s Nikkei 225 gains over 1%; South Korea’s Kospi rebounds 4%
Asia-Pacific markets traded mixed early Tuesday. Japan’s Nikkei 225 added over 1% while the Topix rose 1.22%.
South Korea’s Kospi rebounded from Monday’s sell-off to jump 4%, and the small-cap Kosdaq advanced 3.7%. Australia’s benchmark S&P/ASX 200 was down 1.33%.
Hong Kong Hang Seng index futures last traded at 24,555, lower than the index’s last close of 24,657.06.
— Lee Ying Shan
Asia markets set for mixed open as investors assess fragile Iran-Israel ceasefire
Asia-Pacific markets were set to open mixed Tuesday, as investors weighed a fragile ceasefire between Iran and Israel, with U.S. chip stock rebound overnight likely offering support to regional tech names.
The Chicago futures contract for Japan’s Nikkei 225 was at 65,450 and its Osaka counterpart last traded at 65,400 compared with the index’s previous close of 64,024.6.
Hong Kong Hang Seng index futures last traded at 24,555, lower than the index’s last close of 24,657.06.
Australia’s benchmark S&P/ASX 200 is set to fall after resuming trade following a holiday, with futures last at 8,533, lower than the index’s previous close of 8,625.1.
Iran on Monday halted military strikes against Israel, but warned it would resume attacks if Israeli forces continue operations in Lebanon, Tehran’s foreign ministry told CNBC on Monday. Hours later, Israeli Prime Minister Benjamin Netanyahu said the conflict with Iran and Hezbollah was “not yet over,” despite arguing that both adversaries had been significantly weakened.
— Lee Ying Shan
Vail Resorts falls after lowering its full-year adjusted EBITDA guidance
Shares of Vail Resorts were trading about 4% lower in Monday’s after-hours session after the company cut its guidance for adjusted EBITDA for the full year.
The luxury ski resorts operator now sees adjusted EBITDA coming in between $739 million to $761 million for the year, versus prior guidance of the lower end of the $745 million to $775 million range. Analysts polled by FactSet were expecting the figure to come in at $748.7 million.
However, Vail Resorts reported adjusted EBITDA and revenue for its fiscal third quarter that came in above analysts’ forecasts.
— Lisa Kailai Han
OpenAI confidentially files for IPO
OpenAI has confidentially filed for an IPO with the Securities and Exchange Commission.
OpenAI’s filing comes just a week after rival Anthropic’s, and days before Elon Musk’s SpaceX is slated to go public.
The artificial intelligence company, currently valued at more than $850 billion, could go public as soon as the fourth quarter of this year. But OpenAI said on Monday it has not yet decided on exact timing.
“We recently submitted a confidential S-1. We expect it to leak so we’re just announcing it. We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company. But it’s a complicated set of tradeoffs and this gives us the option to go public sooner if that ends up being best,” the company said in its post.
— Ashley Capoot and Lisa Kailai Han
Stock futures open little changed
Stock futures traded near flat on Monday evening.
Shortly after 6 p.m. ET, futures tied to all three major averages were trading around the flatline.
— Lisa Kailai Han
