On Monday, the S&P 500 Index ($SPX) (SPY) rose +0.36%, the Dow Jones Industrial Average ($DOWI) (DIA) rose +0.14%, and the Nasdaq 100 Index ($IUXX) (QQQ) rose +0.66%. June E-mini S&P futures (ESM26) rose +0.32%, and June E-mini Nasdaq futures (NQM26) rose +0.61%.
Stock indexes closed the day with gains, recovering from early losses caused by Iran stalling US-Iran ceasefire talks. Oil prices rose as much as +8% at the start of the day and stocks fell after Iran’s Tasnim news agency reported that the Iranian government said in a statement that it has stopped exchanging messages with the US regarding the draft ceasefire agreement due to Israel’s increased attacks on Lebanon. Iran has consistently said that there will be no US-Iran ceasefire without a ceasefire in Lebanon.
Join 200K+ Subscribers:
Find out why the Midday Barchart Brief newsletter is a must-read for thousands of people every day.
However, new hopes for a ceasefire emerged later in the day when President Trump said he had spoken to Hezbollah officials and Israeli Prime Minister Netanyahu, and both sides told him they would agree to stop attacking each other. Mr Trump then claimed in a post that “negotiations continue at a rapid pace” with Iran. Crude oil prices also closed up more than +5% today.
Tech shares got support as Nvidia rose more than +5% after saying it will enter the PC market with a new chip for PCs that seeks to break the stranglehold of Intel and AMD. Additionally, software stocks performed well, with Microsoft rising more than +2% after Nvidia’s CEO calmed concerns about AI disruptions.
Shares also got support after the US manufacturing PMI in May rose +1.3 points to 54.0, which was stronger than expected after rising +0.3 points to 53.0. However, S&P’s end-May manufacturing PMI was down -0.2 points to 55.1 from an initial report of 55.3, while an unchanged report was expected. On a positive inflation note, the May ISM price-paid index fell -2.5 points to 82.1 from 84.6, weaker than expected, rising +0.4 points to 85.0.
Markets await Friday’s US unemployment report, which is expected to show an unchanged unemployment rate of +4.3% and an increase in payrolls of +89,000.
Markets are discounting a 5% chance of a +25bp FOMC rate hike at the next FOMC meeting on June 16-17.
The typically favorable Q1 earnings season is coming to an end. As of last Friday, 84% of the 485 S&P 500 companies that have reported Q1 earnings have beaten estimates. According to Bloomberg Intelligence, Q1 S&P 500 earnings are projected to increase +12% year over year. Excluding the technology sector, Q1 earnings are projected to grow about +3%, the weakest in two years.
Foreign stock markets closed with mixed sentiment on Monday. Euro Stoxx 50 closed down -0.26%. China’s Shanghai Composite closed down -0.27%. Japan’s Nikkei Stock Average hit a new record high and closed up +0.91%.
interest rates
June 10-year T-notes (ZNM6) fell -3.5 ticks, and the 10-year T-note yield rose +2.4 bp to 4.459%. T-note prices eased as crude oil prices rallied by more than +5% on Monday, which pushed the 10-year breakeven inflation expectations rate up by +1.1bp to 2.411%.
Yields on European government bonds rose on Monday. The 10-year German Bund yield rose +6.5bp to 3.003%. 10-year UK gilt yields are up +8.5bp to 4.897%.
Swaps are discounting a 94% chance of a +25bp ECB rate hike at its next policy meeting on June 11.
European government bond yields rose. The 10-year German Bund yield is up +7.5bp at 3.013%. 10-year UK gilt yields rose +8.6bp to 4.898%.
Swaps are discounting a 94% chance of a +25bp ECB rate hike at its next policy meeting on June 11.
US Stock Movers
Nvidia (NVDA) rose more than +6% after saying it would enter the PC market with a new chip, leading to -4.9% losses for PC-chip rivals Intel (INTC), -1.3% for Advanced Micro Devices (AMD) and -8.8% for Qualcomm (QCOM).
Microsoft (MSFT) rose +2.3% after Nvidia’s CEO downplayed concerns that AI would seriously disrupt the software sector.
Taylor Morrison Home Corp. (TMHC) rose +22% after news of its acquisition by Berkshire Hathaway for approximately $8.5 billion, the first acquisition by Berkshire’s new CEO Greg Abel.
Strategy (MSTR) fell -5.8% after a regulatory filing showed the company sold 32 Bitcoins for $77,135 for $2.5 million at an average selling price of $2.5.
MGM Resorts (MGM) rose +17% after DealBook reported that Barry Diller’s People Inc. will offer to buy the rest of the company at an $18 billion valuation.
Income Report(6/2/2026)
Dollar General Corp (DG), Donaldson Co Inc (DCI), Palo Alto Networks Inc (PANW), GitLab Inc (GTLB), Ulta Beauty Inc (ULTA).
On the date of publication, Rich Asplund did not have (directly or indirectly) any positions in any securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy here for more information.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Reflect the views of.
