US stock futures rose on Monday as investors looked to extend a powerful May rally into the new month.
Dow Jones futures climbed 0.4%, while S&P 500 futures added 0.2%. Nasdaq 100 futures also gained 0.2% in early trading.
The gains follow a strong close to May. The Nasdaq Composite surged more than 8% last month, and when combined with April’s 25% rise, it marks the best two-month run for the index since late 2002.
The S&P 500 rose roughly 5% in May. The Dow Jones added nearly 3% over the same period.
All three major indexes closed at record highs to end last week. The rally has been driven largely by technology stocks, with AI chipmakers drawing heavy interest from investors.
Strong earnings from tech companies have been a key driver. Wall Street has rewarded several of its favorite names in the AI and semiconductor space.
Despite the upbeat market mood, geopolitical tensions remain a concern. US warplanes struck Iranian radar sites and drone facilities over the weekend, and Iran’s Islamic Revolutionary Guard Corps said it retaliated.
President Trump said he would meet with advisers to make a “final determination” on next steps. He also called for the immediate reopening of the Strait of Hormuz, a key route for global energy shipments.
Oil prices moved higher following the weekend strikes. Brent crude climbed 3.1% to $93.98 a barrel, and West Texas Intermediate rose 3% to $90.40 a barrel.
Despite Monday’s rebound, WTI recorded its biggest monthly drop since April 2025, falling nearly 17% in May.
The dollar edged up 0.1% against a basket of major currencies. The yield on the 10-year Treasury note rose 2 basis points to 4.47%, as investors moved toward safer assets.
Deutsche Bank analyst Jim Reid said the outlook for June will depend heavily on whether a US-Iran deal materializes. “We’ve never felt closer to a deal but potentially never felt closer to it all falling apart,” he said.
Investors will be watching Friday’s nonfarm payrolls report closely. The data will offer a fresh read on the labor market and could influence expectations for Federal Reserve interest rate decisions later this year.
Hopes of a peace deal between Washington and Tehran had helped lift markets in recent weeks. However, the weekend strikes have introduced fresh doubt about how quickly a resolution could come.
Markets remain in a holding pattern on the geopolitical front, with traders balancing strong tech momentum against ongoing uncertainty in the Middle East.
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