FINWIRES · TerminalLIVE
FINWIRES

Exchange-Traded Funds, Equity Futures Higher Pre-Bell Monday as AI Optimism Overshadows Middle East Risks

By

The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.2% and the actively traded Invesco QQQ Trust (QQQ) advanced 0.2% in Monday's premarket activity, as enthusiasm for new artificial intelligence initiatives from major technology companies outweighs concerns about ongoing U.S.-Iran tensions and elevated energy prices.

US stock futures were also higher, with S&P 500 Index futures up 0.2%, Dow Jones Industrial Average futures advancing 0.3%, and Nasdaq futures gaining 0.2% before the start of regular trading.

S&P Global manufacturing data for May will be released at 9:45 am ET, followed by the construction spending data for April, and the ISM's manufacturing reading for May at 10:00 am ET.

In premarket action, bitcoin was down by 1.9%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 2% lower, Ether ETF (EETH) retreated by 1.5%, and Bitcoin & Ether Market Cap Weight ETF (BETH) gained 1.7%.

Power Play:

Consumer

The State Street Consumer Staples Select Sector SPDR ETF (XLP) was down 0.3% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was flat. The iShares US Consumer Staples ETF (IYK) retreated by 0.9%. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 0.6%. The VanEck Retail ETF (RTH) was inactive, while the State Street SPDR S&P Retail ETF (XRT) advanced by 0.4%.

Taylor Morrison Home (TMHC) shares were up more than 22% pre-bell after the company agreed to be acquired by Berkshire Hathaway (BRK.A, BRK.B) for $6.8 billion in cash and a total equity value of $8.5 billion

Winners and Losers:

Health Care

The State Street Health Care Select Sector SPDR ETF (XLV) retreated by 0.1%, the Vanguard Health Care Index Fund (VHT) was down 0.03%, while the iShares US Healthcare ETF (IYH) was flat. The iShares Biotechnology ETF (IBB) gained by 0.03%.

Grail's (GRAL) stock was down more than 17% premarket after the company reported its NHS-Galleri trial missed its primary endpoint of reducing combined Stage III and IV cancer diagnoses.

Financial

The State Street Financial Select Sector SPDR ETF (XLF) retreated by 0.5%. Direxion Daily Financial Bull 3X Shares (FAS) was down 1.5%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 1.4% lower.

Coinbase Global (COIN) stock was down more than 3% before market open. Chief Legal Officer Paul Grewal sold 1,960 company shares for $346,683 on May 27, a regulatory filing with the US Securities and Exchange Commission showed.

Industrial

The State Street Industrial Select Sector SPDR ETF (XLI) retreated by 0.4%, while the Vanguard Industrials Index Fund (VIS) was down 0.5% and the iShares US Industrials ETF (IYJ) lost by 0.6%

Diana Shipping (DSX) stock was down more than 0.4% before the opening bell after the company said Sunday it has issued an open letter urging Genco Shipping & Trading (GNK) investors to elect its six independent board candidates at the upcoming June 18 annual meeting. Genco stock was 0.8% lower.

Technology

The State Street Technology Select Sector SPDR ETF (XLK) advanced 1.1%, and the iShares US Technology ETF (IYW) was 1.1% higher, while the iShares Expanded Tech Sector ETF (IGM) was up 0.8%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) was 0.3% lower, while the iShares Semiconductor ETF (SOXX) declined by 0.7%.

Dell Technologies (DELL) shares were up more than 1% in premarket activity a day after the company said it has launched its XPS 13 laptop.

Energy

The iShares US Energy ETF (IYE) was 0.1% higher, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 0.5%.

Venture Global (VG) stock was up more than 1% before the opening bell after the company said its subsidiary Venture Global LNG plans to issue $2.25 billion in senior secured notes due 2034 and 2036.

Commodities

Front-month US West Texas Intermediate crude oil gained by 2.3% to $89.40 per barrel on the New York Mercantile Exchange. Natural gas was down 2.3% to $3.21 per 1 million British Thermal Units. The United States Oil Fund (USO) rose by 1.8%, while the United States Natural Gas Fund (UNG) was 2.4% lower.

Gold futures for July retreated by 1.2% to $4,537.70 an ounce on the Comex. Silver futures increased by 0.3% to $76.10 an ounce. SPDR Gold Shares (GLD) was down by 1%, and the iShares Silver Trust (SLV) gained 0.4%.

Related Articles

Commodities

US Natural Gas Update: Prices Decline After Hitting Resistance Level

US natural gas futures fell in after-hours trading on Friday after encountering strong technical resistance at the 200-day moving average, wiping out earlier gains, the Wall Street Journal reported.Front-month Henry Hub natural gas futures and the continuous contract both settled down 0.37% at $3.273 per million British thermal units.Earlier in the session, prices climbed to their highest level for nearest-futures contracts in about 2-1/2 months, supported by forecasts for above-normal US temperatures next month that could increase electricity demand for air conditioning and boost gas-fired power generation demand.Barchart, citing data from forecaster Vaisala, said above-average temperatures are expected across much of the northern two-thirds of the US between Jun. 8-12.Support from Thursday's government storage report also helped underpin prices earlier in the day. The US Energy Information Administration said utilities injected 92 billion cubic feet of gas into storage in the week ended May 22, below market expectations for a 95 Bcf to 96 Bcf build and under the 104 Bcf injection recorded in the same week a year earlier.Total gas inventories rose to 2,483 billion cubic feet, about 0.9% above year-ago levels and 6.2% above the five-year seasonal average. The surplus to the five-year average narrowed to 144 Bcf from 149 Bcf the previous week.Barchart, citing data from BNEF, said Lower 48 US gas demand on Friday was estimated at 67.7 Bcf per day, down 2.5 Bcf from the prior day and down 1.9% from a year earlier.NRG Energy estimated gas consumption slipped to around 36 Bcf/d and could ease further toward 34 Bcf/d, reflecting weaker demand across Texas, the Midwest, and the Southeast. However, forecasts indicate a rebound to the upper-30 Bcf/d range over the next two weeks as temperatures rise.Estimated net flows to US LNG export terminals were unchanged on Friday at 18.5 Bcf/d, but were up 2.1% from the previous week.Meanwhile, Lower 48 dry gas production was estimated at 110.6 Bcf/d on Friday, up 200 million cubic feet per day from Thursday and 2.0% higher than a year earlier.

Commodities

Slower US Oil Exports Pressure Mars Crude Prices, Bloomberg Analysis Says

Mars crude has weakened as US oil exports retreat from recent highs, reducing support for one of the country's key medium sour crude grades, according to a Bloomberg analysis on Friday.Mars crude declined in five of the last seven trading sessions, including a roughly 75% drop in value on Wednesday before a modest recovery on Thursday, the analysis said, citing pricing data from Link Data Services.Strong overseas demand had previously lifted Mars after buyers sought US barrels to replace Middle East supplies disrupted by the Iran conflict.The premium Mars commands over West Texas Intermediate has narrowed to about $1.50 per barrel from an early-April high of $18/bbl as export demand cooled.The Energy Information Administration said US crude exports fell by 1.2 million barrels per day to 4.4 million b/d last week after exceeding 6.4 million b/d in April.Growing demand from domestic refineries and lower US crude inventories have limited the number of barrels available for export markets.Softer oil consumption trends in China have added pressure to demand for US crude grades that recently attracted strong interest from Asian refiners.Strong buying from Asian refiners seeking alternatives to Middle East crude boosted demand for Mars and similar grades, while falling inventories at the Cushing, Oklahoma, storage hub weighed on Gulf Coast barrels, the analysis said.Stockpiles at the Cushing, Oklahoma storage hub dropped to 23 million barrels last week, prompting stronger competition among inland refiners for available crude and adding pressure to Gulf Coast grades, EIA data showed.

Commodities

Oil Market Overpricing Prospects for Durable Hormuz Ceasefire, RBC Says

Oil markets may be overestimating the likelihood and impact of a near-term agreement between the US and Iran following renewed military clashes in and around the Strait of Hormuz, RBC Capital Markets analysts said in a note on Thursday.The comments followed reports that Washington and Tehran were considering a 60-day ceasefire extension tied to negotiations and unrestricted navigation through the strategic waterway. The US intercepted four Iranian drones in the Strait of Hormuz and struck Iranian military positions near Bandar Abbas on Thursday."We would caution readers that we have been here before," RBC analysts wrote, noting that similar reports of an imminent memorandum of understanding surfaced three weeks ago without producing a lasting breakthrough.RBC said any interim agreement would likely allow only limited and largely one-directional tanker movements, leaving significant logistical obstacles to restoring normal shipping flows. The bank added that Feb. 27 could ultimately represent the peak for Hormuz tanker transits "for the foreseeable future."Western shipping companies may also remain reluctant to resume normal operations due to persistent risks from missiles, drones, and naval mines, as well as elevated insurance costs and sanctions-related legal complications involving Iran's Revolutionary Guard.The analysts noted that since the conflict began, observed global inventories have fallen by roughly 150 million barrels, including about 115 million barrels from SPR drawdowns. Excluding the Middle East, inventories are estimated to be down closer to 200 million barrels.Asia-Pacific inventories have seen the steepest declines, while Middle East crude stocks have risen as stranded Gulf supplies accumulated in storage. RBC said the supply outlook remains largely unchanged and expects inventory draws to continue until demand destruction becomes more severe."Finally, we do wonder whether some elements in Iran are in favor of maintaining the current no -war, minimal -oil status quo, believing that the country's bargaining position will improve once summer is in full swing, and the economic impact of inventory drawdowns becomes more difficult to diminish through headline management," the analysts said.Separately, RBC highlighted accelerating US natural gas infrastructure development, with nearly 32 Bcf/d of pipeline capacity already under construction or partially completed for 2026 and 2027, much of it tied to LNG export growth and Permian takeaway expansion.