As we approach the start of the trading day, several key factors are expected to impact the market landscape. U.S. equity futures are signaling a promising start for traders on Monday morning.
1. Major blue-chip stocks are anticipated to dip as tensions surrounding the Middle East cease-fire seem to escalate, and the effects of Friday’s severe sell-off in artificial intelligence stocks linger. Specifically, futures for the Dow Jones Industrial Average have declined by 169 points, or 0.3%. In contrast, futures for the S&P 500 have increased by 0.3%, and the tech-heavy Nasdaq 100 has gained 0.7%. After the Nasdaq-100 plummeted nearly 5% and the Nasdaq Composite dropped over 4%—its steepest decline since April 2025—some investors are eyeing opportunities to buy on dips. With the upcoming Apple WWDC event today, as well as the May CPI and PPI reports due on Tuesday and Wednesday, cautious sentiment prevails as Goldman Sachs predicts the next interest rate cut may not occur until June 2027.
In light of the stronger-than-expected May Employment Report mentioned in our previous Weekly Roundup, uncertainty surrounding these forthcoming events may cause traders to remain on the sidelines in the short term. Portfolio members can anticipate an updated shopping list later today, highlighting potential acquisition opportunities. We will also continue to monitor market fund flows and essential technical indicators for both the S&P 500 and Nasdaq Composite.
2. Alphabet Inc.’s Google has made headlines by agreeing to pay Elon Musk’s SpaceX $920 million monthly for cloud computing resources in a deal that extends until mid-2029. This partnership represents Google’s second significant commitment to an AI competitor in a matter of weeks, amounting to nearly $30 billion throughout the contract duration, according to a recent filing from SpaceX.
On another note, Nvidia has announced several agreements in South Korea with major tech firms, including SK Hynix and Naver, to secure memory chips essential for its AI initiatives and attract new clientele. The partnership will enable SK Hynix to develop advanced memory types to meet the rising demand from global AI data centers and support Nvidia’s broadened scope, which now includes robotics and AI supercomputers.
CEO Jensen Huang views the global tech stock sell-off that commenced last week as an opportune time for buying, emphasizing that the development of artificial intelligence is still in its nascent stages.
SpaceX continues to generate excitement leading up to its IPO pricing later this week. With this collaboration with Google, interest in the offering is expected to grow, as it was already oversubscribed two times prior. Meanwhile, Nvidia’s long-term agreements further tie up supplier capacity, a strategic response to supply chain challenges faced amid increasing AI adoption.
3. Marvell Technology is poised to be added to the S&P 500 this month, following the chipmaker achieving significant profitability—largely due to the AI boom. As the company replaces PoolCorp in the index ahead of trading on June 22, this news is helping to offset Friday’s losses for Marvell’s stock. With more than $20 trillion in assets linked to the S&P 500 needing to adjust their holdings, there will likely be high demand for Marvell shares in the days leading up to the rebalancing. The company is well-positioned due to AI and data center trends driving the need for specialized AI and networking chips.
4. Oil prices surged following military exchanges between Iran and Israel, creating renewed concerns about a precarious cease-fire in the region. The recent hostilities come after Israel targeted Hezbollah in Lebanon, prompting a retaliatory missile barrage from Iran—the first significant violence since a cease-fire was implemented two months prior.
Amid this resurgence of conflict, President Trump has called for an immediate cessation of hostilities between Israel and Iran, indicating that these developments could further complicate U.S.-Iran relations.
5. Airlines are bracing for an additional $100 billion in jet fuel expenses this year, stemming from the Iran conflict's impact on pricing, as reported by a global industry group. Consequently, expected net profits for the industry will likely plummet from $43 billion in 2025 to $23 billion this year, with profit margins dropping significantly.
While shares of major aircraft manufacturer Boeing could see a bump alongside the market, these difficulties and the ongoing Iran situation present concerns about future airline investments. Additionally, Airbus faces challenges in delivering specific aircraft models due to supply chain issues, particularly with its popular A320 family.
6. Apple is set to host its annual Worldwide Developers Conference (WWDC) today at its headquarters in Cupertino, California. This event is particularly notable as it marks Tim Cook’s last keynote as CEO, and is expected to serve as a pivotal moment for Apple’s AI strategy, which has struggled to keep pace with competitors. A significant highlight will likely be the unveiling of an upgraded, AI-enhanced version of Siri, the digital assistant that first rolled out in 2011 but has since lagged behind in capabilities compared to newer generative AI technologies.
The anticipation surrounding Monday's keynote is palpable, especially regarding the improvements to Siri. If Apple succeeds in impressing its audience, we may witness a renewed cycle of iPhone replacements. However, historical trends suggest that AAPL shares often retract following WWDC, influenced by pre-event speculation and chatter.
7. Economic data to be released today according to TipRanks will include Consumer Inflation Expectations for May.
8. Companies scheduled to report earnings today include Campbell’s (CPB) in the morning and Mission Produce (AVO) and Vail Resorts (MTN) in the afternoon.
As of now, TheStreet Pro Portfolio continues to hold positions in AAPL, AMAT, GOOGL, MRVL, MU, and NVDA.
