Oil rises, U.S. stock futures dip as Wall Street looks to extend its winning streak

MW Oil rises, U.S. stock futures dip as Wall Street looks to extend its winning streak

By Mike Murphy

The S&P 500 has gained more than 16% over the past two months, furled largely by red-hot tech stocks.

U.S. stock-index futures were little changed on Sunday, as Wall Street looks to stretch the market's record-setting rally into June.

Dow Jones Industrial Average futures (YM00) were down about 75 points, or 0.1%. S&P 500 futures (ES00) and Nasdaq-100 futures (NQ00) fell fractionally. Bitcoin (BTCUSD) was recently trading around $74,000, down about 5% over the past week.

Oil prices rose on Sunday, after tumbling in May on renewed hopes that the Iran war will soon end. West Texas Intermediate crude (CL.1), the U.S. benchmark, advanced more than 2% on Sunday, after dropping 17% over the past month, closing Friday at $87.36 a barrel and capping its worst month since early 2020, according to FactSet data. Brent crude (BRN00) settled at $92.50 on Friday after falling 20% on the month.

Read more: Oil prices tumble nearly 20% in May - the biggest monthly drop since 2020. Here's what's next.

"The market is increasingly behaving as though the U.S.-Iran war is ending and the oil market is about to return to normal," Stephen Innes, managing partner at SPI Asset Management, wrote in a weekend note. "I suspect that view is only half right. The war may indeed be moving toward its final chapters, but the physical energy system does not heal as quickly as financial markets."

"I believe the oil market is entering a far more complicated phase than many investors appreciate," Innes added, citing the likelihood of a long and expensive systemic restructuring of the global energy market to reduce geopolitical risk premiums. "The U.S.-Iran war may be ending, but the race to secure energy for the next one may just be beginning," he said.

Meanwhile, negotiations to end the Iran war apparently remain stalled. The New York Times reported over the weekend that President Donald Trump has toughened the terms of a potential agreement. On Saturday, President Donald Trump told his daughter-in-law, Lara Trump, in an interview on Fox News that he's in no hurry to make a deal with Iran. "Slowly but surely we're getting, I think, what we want, and if we don't get what we want we're going to end it a different way," he said, hinting at further military strikes. On Saturday, the U.S. Navy struck a merchant ship trying to avoid the blockade of Iranian ports, the Associated Press reported.

On Friday, all three major U.S. indexes closed at record highs for the third day in a row, as the Iran stalemate continued to be overshadowed by a huge rally by tech stocks. The Dow DJIA rose 2.8% in May, while the S&P 500 SPX gained 5.2%, and ended Friday with its ninth straight winning week. The tech-heavy Nasdaq COMP jumped 8.4% over the month.

See more: Wall Street's red-hot momentum trade is still winning, as strategy delivers best 2-month gain on record

Also: These S&P 500 stocks soared the most during the AI-driven May rally

With earnings season winding down - this week will see Broadcom $(AVGO)$, CrowdStrike (CRWD) and Macy's (M) reporting, among others - investors will be looking forward to employment data this week, with April job-openings data due out Tuesday, ADP employment data scheduled for Wednesday and the May employment report coming Friday.

-Mike Murphy

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May 31, 2026 18:17 ET (22:17 GMT)

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