FINWIRES · TerminalLIVE
FINWIRES

US Equity Indexes Mixed as Trump's Call to Halt Iran-Israel Strikes Yields Results, Ceasefire Remains at Risk

By

US equity indexes traded mixed, as technology topped sector charts after President Donald Trump's efforts to keep the Iran ceasefire intact produced results, while negotiations to reach a peace deal with Tehran remain stalled.

The Nasdaq Composite jumped 1.1% to 25,991.2, with the S&P 500 up 0.5% to 7,417.3, but the Dow Jones Industrial Average slipped 0.1% to 50,817.6 in Monday's midday trading. Utilities, communication services, and materials led the decliners.

Israel and Iran must immediately stop "shooting," Trump said in a Truth Social post.

Israel accepted the US request to halt strikes on Iran but will continue attacks on southern Lebanon, sources told CNN. Iran has suspended its operations on Israel, but warned it would resume if strikes in southern Lebanon continue, the news report said Monday.

The Israel Defense Forces said that the Israeli Air Force hit military targets in western and central Iran, according to a post on X. Meanwhile, Iran's military reportedly said it targeted two Israeli air bases in retaliation.

"If a US-Iran deal is not reached - presumably via concessions made by both sides - then the prospect that a new round of large-scale kinetic warfare will resume," Thierry Wizmna, a global foreign-exchange and rates strategist at Macquarie, said in a note. "According to most estimates, operational depletion [for inventories] could be reached in H2 2026."

West Texas Intermediate crude oil futures rose 0.9% to $91.36, and Brent crude futures climbed 1.6% to $94.54. Earlier in the session, crude oil futures were up more than 4% each amid reports of an overnight escalation between Iran and Israel.

Most US Treasury yields rose, with the 10-year up two basis points to 4.56% while the two-year was unchanged at 4.16%.

In precious metals, gold futures were steady at $4,367.2, while silver futures slipped 0.4% to $68.81.

In company news, Alphabet's (GOOG, GOOGL) Google and Nvidia (NVDA) have turned to Intel (INTC) as a backup manufacturer for their most advanced processors as Taiwan Semiconductor Manufacturing (TSM) struggles to meet overwhelming demand, The Information reported Monday, citing four people with direct knowledge of the discussions. Shares of Intel jumped 13%, making it one of the top gainers in the S&P 500.

Cantor Fitzgerald adjusted its price target on Micron Technology's (MU) shares to $1,500 from $700 while maintaining its overweight rating. Wells Fargo adjusted its price objective for Micron to $1,220 from $550, while keeping its overweight rating on the stock. Shares of Micron were up 13%, making it one of the biggest outperformers in the S&P 500 and the Nasdaq.

In economic news, consumer expectations for one-year US inflation growth was 3.5% in May, down from 3.6% in April, according to a survey released by the New York Federal Reserve Bank on Monday. The median inflation growth expectations remained unchanged at 3.1% three years ahead and 3.0% five years forward.

Related Articles

Asia Markets

Saudi Equities Start Week Lower As Middle Eastern Conflict Continues

Saudi Exchange-traded shares closed lower on Sunday as the new geopolitical developments in the Middle East pushed the Tadawul All Share Index 0.56% in the red.The US is looking into using Iran's assets to repair the damage caused by the Middle Eastern country to its Gulf neighbors. US Treasury Secretary Scott Bessent's statement after it was disclosed that having its assets unfrozen is a requirement for its peace deal with the US.Meanwhile, the members of OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, will reportedly increase their oil output targets by 188,000 barrels per day in July, the same as the prior month.Back at home and on the corporate front, Aldawaa Medical Services (SASE:4163) ticked down 2.55% at closing as it reported a 78.84% year-over-year drop in attributable net profit and a 7.18% annual decline in its revenue for the first quarter ended March 31."Net profit for the first quarter of 2026 decreased by SAR 83 million, or 78.8%, compared to the same period of the last year, primarily driven by the corresponding decline in revenue and gross profit, while maintaining a broadly stable gross margin of 35.6%. The decline is also contributed by higher operating expenses and non-recurring items during the period as below," the medical services company said in its report.Looking ahead into the week, the local economic calendar will see the release of the kingdom's final GDP growth rate numbers for the first quarter on Tuesday, and the April industrial production data on Wednesday.

$^TASI$SASE:4163
Asia Markets

US Equity Indexes Plummet as Dwindling Expectations for Monetary Policy Easing Decimate Mega-Cap Technology

US equity indexes plunged amid a slide in mega-cap chip names and government bonds, as a strong jobs report slashed the odds for monetary policy easing this year.The Nasdaq Composite nosedived 4.2% to 25,709.43, with the S&P 500 down 2.6% to 7,383.74, and the Dow Jones Industrial Average lower by 1.4% to 50,866.78 on Friday.Technology sank with consumer discretionary, materials, and communication services. Consumer staples led the gainers.In a third straight month of growth, nonfarm payrolls surged by 172,000 in May, above the 88,000 jobs increase expected in a Bloomberg-compiled survey. April was revised upwards to a 179,000 increase, and March payrolls were revised upwards to a 214,000 increase, the Bureau of Labor Statistics said Friday. The net upward revision came in at 93,000 jobs, bringing the 3-month average of payroll increases to 188,000, the strongest pace since March 2024, according to notes from Morgan Stanley and Stifel."We read this employment report as indicating the Fed can and will remove its easing bias in June," a Morgan Stanley research note said. "Perhaps exaggerated by a surge in state gov't payrolls and in leisure, but unquestionably strong labor demand."The unemployment rate remained at 4.3% in May, per the BLS data, as expected. Hourly earnings rose by 0.3%, as expected, and faster than a 0.2% increase in April."We see the next move as a hike with our baseline timing being in 1Q27," said David Doyle, head of economics at Macquarie. "Risks to this have become skewed to an earlier hiking with markets now discounting a hike in 4Q26."The probability of a 25 basis-point increase in interest rates in December surged to 43%, from 36% a week ago, according to the CME FedWatch tool. The comparisons for September were 34% versus 20%, and, for October, the data showed an increase to 40% from 25%.US Treasury yields soared, with the 10-year up 6.1 basis points to 4.54% and the two-year higher by 10.6 basis points to 4.16%.In precious metals, gold futures dropped 3.3% to $4,356.8, and silver futures slumped 7% to $68.84.A potential peace deal between the US and Iran hinges on US President Donald Trump's administration agreeing to release $24 billion in frozen Iranian assets, Mohsen Rezaei, military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, told CNN from Tehran, warning that the US would "enter into a dark corridor" should it resume fighting."The negotiations are at a deadlock and Trump must break this deadlock," Rezaei was cited as saying. "The ball is in Trump's court."West Texas Intermediate crude oil futures declined 2.4% to $90.62, and Brent crude futures fell 1.9% to $93.18.In company news, Lululemon Athletica (LULU) shares slumped 9.2%, among the worst performers on the S&P 500, after the company reported a decline in fiscal Q1 earnings and cut its 2026 guidance.Among the top gainers on the index was Cooper Companies (COO), up 7.1%, after the firm reported stronger-than-expected growth in fiscal Q2 adjusted earnings and sales, and lifted its fiscal 2026 outlook for non-GAAP diluted earnings per share.

$^DJI$^IXIC$^SPX$COO$LULU
Asia Markets

US Equity Indexes Slump This Week as Fed Rate Increase Expectations Sink Big Tech, Iran Demands Frozen Assets

US equity indexes dropped this week as big tech tumbled after strong jobs data boosted the odds for monetary policy tightening, while Iran linked the release of billions of dollars of frozen assets to a peace deal with Washington.* The S&P 500 closed at 7,383.59 on Friday versus 7,580.06 a week ago. The Nasdaq Composite stood at about 25,709.43, compared with 26,972.62 a week earlier. The Dow Jones Industrial Average ended at 50,866.78, versus 51,032.46 at the end of last week.* Consumer cyclical, communication services, and technology were among the worst five sectors this week. Amazon.com (AMZN), Tesla (TSLA), and Microsoft (MSFT) were among the bottom 10 companies with a market capitalization of more than $200 billion this week, according to data compiled by Finviz.* Nonfarm payrolls rose by 172,000 in May, above the 88,000 jobs increase expected in a Bloomberg-compiled survey, while April payrolls were revised upwards to a 179,000 increase and March payrolls were revised higher to a 214,000 gain, for a net upward revision of 93,000 jobs.* US job openings rose to 7.618 million in April, above the 6.866 million consensus.* The probability of a 25 basis-point increase in interest rates in December surged to 43%, from 36% a week ago, according to the CME FedWatch tool. The comparisons for September were 34% versus 20%, and, for October, the data showed an increase to 40% from 25%.* A potential peace deal between the US and Iran hinges on US President Donald Trump's administration agreeing to release $24 billion in frozen Iranian assets, Mohsen Rezaei, military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, told CNN from Tehran, warning that the US would "enter into a dark corridor" should it resume fighting.* "The negotiations are at a deadlock, and Trump must break this deadlock," Rezaei was cited as saying in the news report.

$^DJI$^IXIC$^SPX$AMZN$MSFT$TSLA