S&P 500, Nasdaq, Dow Futures Slip As Fragile Israel-Iran Truce Faces New Strains: AAPL, APLD, PSKY, GLXY In Focus

While Iran and Israel have agreed to halt attacks against each other, the ceasefire between the U.S. and Tehran remains uncertain.

• Iran’s chief negotiator, Mohammad Bagher Ghalibaf, has reportedly said that the U.S. was "neither seeking a ceasefire nor seeking dialogue," even as U.S. President Donald Trump has said that talks between the two countries are progressing. 
• Chip and technology stocks recovered on Monday, helping lift the broader market after a sharp selloff last week.
• S&P 500, Dow, and Nasdaq futures were trading lower in the overnight session.

U.S. stock futures were edging lower in the overnight session heading into Tuesday as uncertainties in the Middle East prevailed despite Israel and Iran agreeing to pause attacks on each other.

However, Iran has reportedly said that it will resume attacks against Israel if Hezbollah is attacked.

The Dow futures declined by 0.29%, and the S&P 500 futures fell 0.26%, while the Nasdaq 100 futures traded 0.36% lower as of 9.11 p.m ET.  

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) traded lower at the time of writing, amid ‘bullish’, ‘neutral’, and ‘bearish’ sentiment, respectively.

Meanwhile, the iShares 20+ Year Treasury Bond ETF (TLT) was trading flat amid ‘neutral’ sentiment at the time of writing.

How Did US Markets Fare On Monday?

On Monday, the benchmark S&P 500 and Nasdaq closed higher amid a recovery in chip stocks. The S&P 500 was up 0.30% at close, while the Nasdaq was up nearly 0.9% at close. The Dow lost about 80 points, ending the session 0.16% lower.

Index	Move	Close
Dow Jones Industrial Average	-0.16%	50,786.01
S&P 500	0.30%	7,405.73
Nasdaq Composite	0.86%	25,929.66

US Market Drivers

U.S. markets are tuned into the developments in the Middle East as the war against Iran has stretched over 100 days now. The fragile ceasefire between the U.S. and Iran was threatened after Israel was attacked over the weekend in response to its military action in Lebanon.

Israel retaliated, carrying out a “large-scale strike on strategic defense systems” on Monday, as per the country, despite warnings from U.S. President Donald Trump to stand down.

However, both Iran and Israel said on Monday they had paused attacks on each other following Trump’s appeal, although Iran flagged that it would resume attacks against Israel if the latter continued to attack Hezbollah.

Meanwhile, Iran’s chief negotiator, Mohammad Bagher Ghalibaf, has reportedly said that the U.S. was "neither seeking a ceasefire nor seeking dialogue," even as Trump has said that talks between the two countries are progressing.

Chip and technology stocks recovered on Monday, helping lift the broader market after a sharp selloff last week. Broadcom Inc. (AVGO) closed up nearly 3%, paring some of the declines from last week, while Nvidia Corp. (NVDA) edged up 1.7% at close.

“What the issue is on a longer-term basis is sustainability,” Brian Kersmanc, portfolio manager at GQG Partners, said on CNBC on Monday.

The portfolio manager pointed out that many semiconductor stocks are being treated as fundamentally different when, in reality, they often behave like commodities. He noted that memory chip prices surged as much as 15-fold over the past year and suggested investors should consider how extreme that move is.

On the economic front, concerns over rising inflation and interest rates remain following stronger-than-expected nonfarm payrolls data released on Friday. Investors will be watching for the May Consumer Price Index and the Producer Price Index, expected this week, to gain further insights into the inflation outlook.

Trending Stocks To Watch

Apple Inc. (AAPL): Shares of the iPhone maker slipped nearly 2% on Monday at close and continued to decline in the overnight session after its announcements at its developer conference, including revamped ‘Siri AI’ and new child safety features, failed to spark investor interest.

Paramount Skydance Corp. (PSKY): The company jumped onto the retail radar after reports emerged that indicated the company had proposed potential remedies to settle an antitrust probe by California and several other states concerning its $110 billion acquisition of Warner Bros. Discovery Inc. (WBD).

Applied Digital Corp. (APLD): Shares of the company gained more than 8% in after-hours trading on Monday after it announced a new long-term lease agreement at Delta Forge 2 with an American investment-grade hyperscaler.

Galaxy Digital Inc. (GLXY): Shares of the company soared more than 21% on Monday after CEO Mike Novogratz provided updates on its AI infrastructure business, noting that the company expects to have all the capacity at its West Texas data center leased within the next few months.

Global Market Trends

Oil futures traded lower in the overnight session, with Brent crude futures expiring in August declining about 0.34% to trade at around $93.93 a barrel at the time of writing, while WTI crude futures expiring in July fell about 0.36%, trading around $90.99 a barrel.

Meanwhile, yields on the 10-year Treasury rose to 4.576%, while gold prices fell to around $4,323.47 per ounce.

Asian markets were trading mixed in the opening on Tuesday, with South Korea's KOSPI and Japan’s Nikkei 225 edging higher. The SSE Composite index and Australian stocks were trading lower at the open.

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