Markets reacted to easing geopolitical tensions in the Strait of Hormuz and strong corporate earnings from major tech firms, helping indexes recover from earlier weekly losses.
U.S. stock index futures moved higher following a volatile trading week marked by geopolitical clashes and shifting investor sentiment around artificial intelligence spending as technology stocks staged a rebound. Dow Jones Industrial Average futures rose 188 points, or 0.4%, while S&P 500 futures gained 0.8%. Nasdaq-100 futures outperformed major peers with a 1.2% advance, reflecting renewed institutional buying in semiconductor and AI-related equities.
Technology Shares and Semiconductor Stocks Drive Premarket Gains
The recovery was anchored by sharp gains across the technology sector. Semiconductor and hardware names advanced significantly after facing heavy selling pressure in prior sessions as buying returned to technology shares. Arm Holdings surged 3.46%, Marvell Technology gained 2.16%, Micron Technology rose 1.56%, and Intel advanced 1.17%.
Corporate developments further supported individual movers. Shares of SpaceX were set to open 1.23% higher after Nasdaq confirmed that Elon Musk’s aerospace company will be fast-tracked into the Nasdaq-100 Index, an inclusion expected to draw increased institutional allocations through index-tracking funds ahead of Nasdaq-100 Inclusion. Meanwhile, Comcast jumped 25% following its announcement that it will separate its media and technology businesses into two publicly traded companies within approximately one year on Business Separation Plan.
Strait of Hormuz Ceasefire and Oil Market Reactions
Geopolitical developments in the Middle East remained a primary driver of market direction. The United States and Iran agreed to a temporary pause in hostilities, allowing commercial vessels to resume movement through the Strait of Hormuz after military exchanges threatened global energy shipments following a weekend of military exchanges that had raised fears. A U.S. official confirmed to CNBC that technical discussions under a memorandum of understanding would continue while both sides stand down.
Despite the temporary easing of hostilities, oil prices remained elevated as traders weighed the durability of the truce. International benchmark Brent crude futures climbed above $95 per barrel to reach $95.47, while U.S. WTI crude futures gained 5% to settle at $88.58 per barrel as Strait of Hormuz tensions escalate. Adam Crisafulli of Vital Knowledge noted that neither side appeared eager to resume full-scale conflict, though market participants maintained caution regarding potential supply shocks while both sides temporarily stand down.
The provided sources do not contain any statements from Richard Bernstein regarding the recalibration of Fed rate cut expectations or excess liquidity in speculative markets.
Amazon and Microsoft Earnings Shape AI Infrastructure Sentiments
Quarterly earnings reports from major hyperscalers provided renewed confidence in artificial intelligence spending. Amazon shares jumped 9.4% in extended trading after reporting second-quarter results that featured its AWS cloud division delivering its fastest revenue growth in 18 quarters with shares jumping 9.4% after the e-commerce giant reported stronger-than-expected second-quarter earnings. The results reinforced broader optimism surrounding enterprise demand for custom AI chips and infrastructure services.
Conversely, Apple shares fell more than 6% in extended trading due to weaker sales figures in China, slower services expansion, and a revenue growth forecast of 9% to 11% for the current quarter, which missed analyst expectations of 12% below Wall Street expectations of 12%. Apple management warned that escalating component and memory costs driven by booming AI demand were creating measurable supply chain pressures higher memory and component costs, driven by booming AI demand, were creating supply chain pressures.
Mixed Monthly Performance Across Major Indexes
As trading sessions for June draw toward a close, the three major U.S. stock indexes navigate divergent monthly trajectories As June trading approaches its final sessions.
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