By Dow Jones Newswires Staff
U.S. stock futures point to an extension of May's record-setting rally, even as oil prices rose after the U.S. and Iran exchanged a fresh round of strikes.
Brent crude oil prices rose 3% after the U.S. said it struck Iranian air-defense sites in response to Tehran's downing of an American drone. Meanwhile, Israel expanded its invasion of Lebanon, further complicating efforts to agree on a memorandum of understanding between the U.S. and Iran that would remove blockages in the crucial Strait of Hormuz.
U.S. technology stocks look set to follow their Asian peers higher, as exuberance around artificial-intelligence continues to drive markets higher. The gains come despite rising U.S. Treasury yields, with the dollar also rising on the Middle East escalation.
The first week of June builds to the publication of U.S. nonfarm payroll data for May on Friday, which will help shape expectations for Federal Reserve policy.
-- Brent crude rose 3.1% to $93.95 a barrel after closing at its lowest level since mid-April last week, while WTI futures are up 3.5% to $90.40 a barrel. The market is once again factoring in heightened military tensions and growing uncertainty surrounding efforts to secure a deal, though gains have remained relatively contained. "Global oil reserves are falling fast, and markets are not pricing an extended closure of the Strait of Hormuz, meaning that upside risks to oil prices loom," said Ipek Ozkardeskaya, senior analyst at Swissquote.
-- U.S. stock futures were higher across the three major indexes. Futures for the S&P 500 were up 0.2%, while the Dow Jones Industrial Average climbed 0.05%. The tech-heavy Nasdaq rose 0.2% premarket.
-- Technology stocks drove some Asian indexes higher, though Shanghai indexes fell. South Korea's Kospi 200 extended its historic rally, gaining 4.25% as memory chip maker Samsung Electronics jumped 10%. Japan's Nikkei 225 rose 0.9%, boosted by a 14% jump for OpenAI-investor SoftBank--now the most valuable company in the index. In contrast, technology stocks dragged on China's benchmark Shanghai Composite-down 0.3%--after China's State Council said the government would prohibit the unauthorized export of state-restricted goods, technology, services and data. Hong Kong's Hang Seng index rose 0.7%.
-- European blue-chip equity indexes were mixed at the open. Tech stocks and oil majors gained, though energy-intensive stocks slipped, pushing the Europe-wide Stoxx 600 down 0.2%. Despite gains for Shell and BP, London's FTSE 100 fell 0.2% as miners and industrials declined. In Paris, the CAC 40 was flat as falling autos and industrial manufacturers countered technology gains. Schneider Electric advanced 2.5%. Germany's industrial-heavy DAX edged 0.1% higher as software giant SAP--the index's second most valuable company--rose 2.1%. Semiconductor company Infineon was 1.8% higher. Italy's FTSE MIB was 0.1% higher, while the Spanish Ibex 35 slipped 0.1%. The Dutch AEX slid 0.3%, with Universal Music Group down 1.6% after rejecting an approach from Pershing Square.
-- The dollar rose as escalating U.S.-Iran tensions supported safe-haven assets. The DXY dollar index rose 0.1% to 99.011 after reaching a two-week low of 98.751 on Friday when hopes for a deal had boosted the currency.
-- U.S. Treasury yields rose in Asian trade with more increases in the short and intermediate segments than in the long end as near-term uncertainty over the Middle East conflict continues to fuel inflationary expectations. The two-year Treasury yield was up 1.9 basis points to 4.032%, the 10-year yield is up 1.6 basis points at 4.468% and the 30-year yield was up only 0.1 basis points at 4.993%.
-- Bitcoin fell 0.7% to $73,104.
-- Gold prices fell more than 1% on a firmer dollar and rising oil prices. Futures in New York were down 1.2% to $4,536.90 a troy ounce, while the U.S. dollar index was up 0.1% to 98.97. Oil prices climbed more than 3% on Monday, fuelling concerns over inflationary pressures and interest-rate hikes.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
June 01, 2026 04:22 ET (08:22 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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