U.S. stock futures fell on Monday following Friday’s sharp declines. This comes as a drone strike triggered a fire near the UAE’s Barakah nuclear power plant.
UAE officials confirmed no radiation leak or injuries occurred, Reuters reported. Earlier last week, President Donald Trump took to Truth Social and said that Iran must act “FAST, or there won’t be anything left of them.”
Investors will keep an eye on Nvidia Corp.‘s (NASDAQ:NVDA) earnings, scheduled to be released after market hours on Tuesday.
Meanwhile, the 10-year Treasury bond yielded 4.08, and the two-year bond was at 4.60%. The CME Group’s FedWatch tool‘s projections show markets pricing a 99.2% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.
| Index | Performance (+/-) |
| Dow Jones | -0.62% |
| S&P 500 | -0.31% |
| Nasdaq 100 | -0.08% |
| Russell 2000 | -0.32% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Monday. The SPY was down 0.23% at $737.47, while the QQQ was lower by 0.009% to $709.00.
Stocks In Focus
Regeneron Pharmaceuticals
- Regeneron Pharmaceuticals Inc. (NASDAQ:REGN) tumbled 11.92% in premarket on Monday after its Phase 3 trials for metastatic melanoma did not achieve statistical significance.
- Benzinga’s Edge Stock Rankings indicate that REGN maintains a strong price trend in the long term, but a weak trend in the short and medium terms, with a moderate quality ranking.
UnitedHealth Group
- UnitedHealth Group Inc. (NYSE:UNH) declined 5.20% after Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) under the new Greg Abel, completely diluted its position in the company.
- Benzinga’s Edge Stock Rankings indicate that UNH maintains a strong price trend in the long, medium, and short terms, with a poor growth score.
Strategy
- Strategy Inc. (NASDAQ:MSTR) was down 2.89% after it announced on Friday that it will repurchase $1.5 billion of convertible debt and listed Bitcoin (CRYPTO: BTC) sales as a potential funding source.
- Benzinga’s Edge Stock Rankings indicate that MSTR maintains a weak price trend in the long term but a strong trend in the short and medium terms.
NextNRG
- NextNRG Inc. (NASDAQ:NXXT) surged 91.16% as its first-quarter revenue increased 29% year-over-year to $21.1 million, while gross profit more than tripled.
- Benzinga’s Edge Stock Rankings indicate that NXXT maintains a weak price trend in the short, medium, and long terms.
ServiceNow
- ServiceNow Inc. (NYSE:NOW) was 3.50% higher after the company announced a multi-year global partnership with Experian Plc (OTC:EXPGF) to expand AI-driven enterprise automation.
- Benzinga’s Edge Stock Rankings indicate that NOW maintains a weak price trend in the long, medium, and short terms, with a solid growth score.
Cues From Last Session
Materials, utilities, and consumer discretionary sectors suffered the heaviest losses on Friday as most S&P 500 groups ended in the red, while energy shares defied the downward trend to close higher.
| Index | Performance (+/-) | Value |
| Dow Jones | -1.07% | 49,526.17 |
| S&P 500 | -1.24% | 7,408.50 |
| Nasdaq Composite | -1.54% | 26,225.14 |
| Russell 2000 | -2.44% | 2,793.30 |
Insights From Analysts
Mohamed El-Erian observes that the U.S. economy and financial markets are “navigating an increasingly complex and divergent landscape.” Although equity markets have largely brushed off recent bond volatility to focus on corporate earnings and AI, El-Erian highlights factors that threaten to undermine this “impressive stock market surge.”
For the broader economy, persistent inflation and higher interest rates present severe challenges. He warns that “the longer and larger the global inflation hit, the greater the risk of demand destruction.” Furthermore, the incoming leadership at the Federal Reserve faces intensifying “risks to economic growth” amid a challenging macro climate.
Regarding the stock market, El-Erian cautions that “stocks could face cross-asset contamination from continued bond market volatility” seen in vulnerable economies.
Moving forward, he stresses the importance of monitoring specific transmission channels, particularly the “yield-equity transmission.” Investors must watch “whether these structurally higher rates will finally begin to weigh more heavily on equity valuations and corporate credit spreads.”
Ultimately, El-Erian views these compounding macro headwinds as significant risks to sustained market and economic growth.
Upcoming Economic Data
Here’s what investors will be keeping an eye on this week.
- On Monday, Atlanta Fed First Vice President Cheryl Venable will deliver welcoming remarks at 8:30 a.m. ET.
- On Tuesday, April’s pending home sales data will be released by 10:00 a.m., Philadelphia Fed President Anna Paulson will speak at 7:00 p.m., and Atlanta Fed First Vice President Cheryl Venable will deliver closing remarks at 7:45 p.m. ET.
- On Wednesday, minutes of the Fed’s May FOMC meeting will be released by 2:00 p.m. ET.
- On Thursday, initial jobless claims for the week ending May 16, April’s housing starts and building permits data, along with May’s Philadelphia Fed manufacturing survey, will all be released by 8:30 a.m. ET.
- May’s S&P flash U.S. services and manufacturing PMI will be released by 9:45 a.m. ET.
- On Friday, May’s final consumer sentiment data, along with April’s U.S. leading economic indicators data, will be out by 10:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude oil futures were trading higher in the early New York session by 0.96% to hover around $101.99 per barrel.
Gold Spot US Dollar rose 0.24% to hover around $4,550.74 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.14% lower at the 99.1500 level.
Meanwhile, Bitcoin was trading 1.46% lower at $76,888.56 per coin, as per the last 24 hours.
Asian markets closed mixed on Monday, as India’s Nifty 50 and South Korea’s Kospi indices rose. While Australia’s ASX 200, Japan’s Nikkei 225, China’s CSI 300, and Hong Kong’s Hang Seng indices fell. European markets were mostly lower in early trade.
Photo courtesy: Shutterstock
Recent Comments