US Futures Edge Higher to Start the Month

US stock futures moved modestly higher on Monday as June trading got underway, with the major indexes remaining near record levels. Wall Street wrapped up a strong May performance, with the Dow advancing 2.79%, while the S&P 500 and Nasdaq Composite climbed 5.15% and 8.36%, respectively. Technology shares continued to drive gains, supported by persistent enthusiasm surrounding artificial intelligence-related investments. Market sentiment also benefited from a solid earnings season, with roughly 85% of S&P 500 companies reporting first-quarter results above expectations. Meanwhile, the US and Iran agreed to a 60-day memorandum of understanding to maintain the ceasefire, although negotiations on a broader and more permanent peace agreement are still ongoing. Investors are now focused on the upcoming nonfarm payrolls report, which could provide important clues about labor market conditions and the future direction of Federal Reserve policy.

The Dow Jones Index gained 363 points or 0.72 percent on Friday to close at 51032 points. Gains were led by IBM (12.90%), Salesforce (8.46%) and Microsoft (5.45%). Biggest losers were Walmart (-2.61%), J&J (-2.41%) and Nike (-2.41%).

US equities rose to record highs on Friday as markets gauged the sustainability of the AI rally and assessed the outlook of oil supply from the Middle East and its impact on inflation. The S&P 500 and Nasdaq each rose 0.2%, while the Dow Jones gained 0.7%. On a monthly basis, the Nasdaq jumped more than 8%, the S&P 500 advanced 5%, and the Dow rose 3%. Reports indicated yesterday that the US and Iran have agreed to a 60-day memorandum that would extend the ongoing ceasefire and start the progress of restoring vessel flows through the Strait of Hormuz, although President Trump has not yet signed-off on the deal. Energy prices and bond yields retreated to deliver broad, although muted, support to the stock market. The financial and consumer defensive sectors were cautiously higher. Microsoft gained 5% and Oracle rose over 10%, with AI software supported by a new investment round in Anthropic. Also, Dell surged nearly 33% as its AI server business boosted its latest guidance.