These are the early headlines and other items poised to influence the market at the start of the trading day. As we share this collection of market drivers, U.S. equity futures point to a positive market open when trading begins later on Monday morning.
1. Blue-chip stocks looked set to fall on Monday as the cease-fire in the Middle East appeared to fray, with the market still reeling from Friday’s brutal artificial intelligence selloff. Futures tracking the Dow Jones Industrial Average slipped 169 points, or 0.3%. S&P 500 futures climbed 0.3%, while contracts tied to the tech-heavy Nasdaq 100 added 0.7%. (Barron’s)
Following Friday’s market sell-off that included the Nasdaq-100 down nearly 5% and the Nasdaq Composite falling over 4%, marking its worst day since April 2025, we are seeing some would-be dip buyers wade into the shares. While tempting following some fresh developments on the AI front (see our next item), we do have Apple’s (AAPL) WWDC event on Monday (see item #6 below), and the May CPI and PPI reports out on Tuesday and Wednesday. Ahead of those inflation reports and after sifting through the May Employment Report, Goldman Sachs now expects the next rate cut to come in June 2027.
As we discussed in Friday’s Weekly Roundup, the potential for those events to weigh on the market following the stronger-than-expected May Employment Report will keep us on the sidelines near-term. We will share an updated shopping list with Portfolio members later on Monday, including potential pick-up points. We will also continue to track fund flows into the market and key technical indicators for both the S&P 500 and the Nasdaq Composite.
2. Alphabet Inc.’s Google has agreed to pay Elon Musk’s SpaceX $920 million a month for computing power as part of a cloud services deal that runs through mid-2029, its second such agreement with an AI competitor in a matter of weeks. Google will pay SpaceX the monthly fee from October this year through June 2029, SpaceX said in the filing Friday. That amounts to about $30 billion through the time of the agreement. (Bloomberg)
Nvidia on Monday announced a series of deals in South Korea with tech giants including SK Hynix and Naver, as it looks to secure crucial memory chips to power its AI ambitions and entice new customers… Memory chip maker SK Hynix signed a multi-year technology partnership that will see it commit to developing advanced types of memory for global AI data centres, SK Group said. SK Hynix and Nvidia said the agreement, which comes as memory chip makers have been straining to keep up with demand, would enable supply to keep pace with Nvidia’s plans, which have expanded to robotics, personal computers and AI supercomputers. (Reuters)
Chief Executive Officer Jensen Huang called a global tech stocks selloff that began last week a buying opportunity, saying the buildout of artificial intelligence has just begun. (Bloomberg)
SpaceX (SPCX) continues to lay down headline-creating excitement ahead of its IPO pricing later this week. Ahead of this tie-up with Google (GOOGL), the offering was already two times oversubscribed, and we expect this news will increase the sense of FOMO around the IPO. Meanwhile, Nvidia’s (NVDA) multi-year agreements are the latest ones that tie up supplier capacity, a competitive move to counter supply chain constraints as AI adoption grows and usage proliferates further. We continue to see tight memory capacity benefiting the Portfolio’s position on Applied Materials (AMAT), and Micron (MU), which is part of our EPS All-Stars model strategy.
3. Marvell Technology is set to join the benchmark S&P 500 later this month, S&P Dow Jones Indices said on Friday, after the chipmaker cleared a key profitability hurdle riding an AI-fueled rally. The company will replace swimming pool equipment distributor PoolCorp on the benchmark index before the start of trading on June 22. (Reuters)
This news is helping the Portfolio’s position in Marvell (MRVL) regain some of the ground it lost on Friday. The inclusion of the shares means that more than $20 trillion in assets that track the S&P 500 across 500-plus individual financial products will need to add the shares to their holdings. We will see most, if not all, that happen ahead of the June 22 rebalance, and once that is complete, fundamentals will resume as the primary driver of the shares. We continue to favor them given the AI and data center prospects and the demand that will drive for custom AI and networking chips.
4. Oil prices jumped after Iran and Israel exchanged strikes, casting fresh doubt on the future of a fragile cease-fire in the Middle East and stoking fears of an escalation in violence. The strikes came after Israel attacked the outskirts of Beirut, targeting Hezbollah, the Iranian-backed militant group. Iran retaliated by firing a barrage of ballistic missiles, which prompted a counterattack from Israel. The attack and counterattack are the first such hostilities since a cease-fire paused the war with Iran two months ago. (NY Times)
President Trump said Israel and Iran must immediately stop “shooting,” in a post on social media, after the two sides exchanged volleys of fire in a tumultuous resumption of violence that tested the U.S. leader’s fragile Middle East ceasefire. (WSJ)
Outside of tech, questions over what’s next between the U.S. and Iran are lifting oil prices on Monday morning. With Iran reportedly saying the U.S. is responsible for the renewed fighting with Israel, and Israel’s actions “cannot be separated” from U.S. policy, this new wrinkle could throw another wrench into U.S.-Iran peace talks.
5. Airlines face an extra $100bn in jet fuel costs this year after the Iran war sent prices spiralling higher, a global industry group has warned. As a result the industry’s combined net profits are expected to halve from $43bn in 2025 to $23bn this year, with the average margin dropping from 4.2 per cent to 2 per cent, according to the International Air Transport Association. (FT)
While shares of Portfolio Bullpen resident Boeing (BA) could trade higher along with the market, that report and the ongoing U.S.-Iran war raise questions about airline capital spending levels relative to market expectations. Meanwhile, supply chains appear to be impacting Airbus’s (EADSY) ability to deliver certain aircraft models, including its bestselling A320 family of aircraft.
With the International Air Transport Association trade group warning that aircraft production globally is rising at an insufficient pace to meet growing demand for more fuel-efficient airliners, we will continue to keep close tabs on BA shares.
6. Apple will host its annual Worldwide Developers Conference (WWDC) on Monday at its Cupertino, Calif., headquarters. The event, Tim Cook’s last as CEO of the company, will serve as a kind of reboot of Apple’s AI strategy, which has lagged behind competing firms’ efforts to date. The biggest news out of the show, which runs through June 12, will likely be the debut of Apple’s long-delayed, AI-infused version of Siri. The digital assistant landed on iPhones with a good deal of fanfare in 2011 but has largely languished over the years. Siri’s deficiencies have become even clearer with the advent of generative AI models, chatbots, and, more recently, AI agents. (Yahoo! Finance)
We are very interested in Apple’s WWDC keynote later on Monday and what the company finally reveals with its revamped, AI-enabled Siri. Our position continues to be that if Apple can delight people, we could see the start of a renewed replacement cycle, especially for the iPhone. However, we also know that AAPL shares frequently pull back following the WWDC keynote, in part because of the run-up in the shares ahead of the event, usually due to pre-event chatter and speculation.
One of the latest items that falls into that category is a potential wait list for the new AI-driven Siri features. Apple followed a similar strategy when it first unveiled Apple Intelligence, but how this figures into Apple’s beta software releases ahead of the general launch later this year is something we’ll be paying close attention to. We’ll have more to say on this revamped Siri and Apple’s other announcements following Monday’s keynote address.
7. Economic data today per TipRanks: Consumer Inflation Expectations (May).
8. Companies reporting today per TipRanks: AM – Campbell’s (CPB). PM – Mission Produce (AVO), Vail Resorts (MTN).
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At the time of publication, TheStreet Pro Portfolio was long AAPL, AMAT, GOOGL, MRVL, MU and NVDA.
