US stock futures climbed in overnight trading late Monday as semiconductor stocks gained ahead of a busy week of Big Tech earnings, helping offset investor concerns over the renewed US-Iran conflict. Nasdaq-100 futures rose 0.39%, Dow futures increased 0.10%, and S&P 500 futures advanced 0.17% at 9:29 PM EDT. The gains came as the VanEck Semiconductor ETF closed up 0.41% on Monday, reversing three consecutive days of declines. The rally occurred despite escalating tensions in the Middle East, where the US launched a tenth consecutive day of military strikes on Iran. Alphabet and Tesla are scheduled to report their second-quarter results on Wednesday, anchoring a week of major technology company earnings announcements.
US Stocks Close Lower on Monday Amid Oil Price Surge
US stock markets closed lower on Monday as rising oil prices amid escalating tensions in the Middle East weighed on returns. The Dow Jones Industrial Average led the declines, shedding over 300 points to close down 0.59% at 51,839.26. The S&P 500 fell 0.19% to 7,443.28, while the Nasdaq declined 0.05% to 25,508.07. Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF, the Invesco QQQ Trust, and the SPDR Dow Jones Industrial Average ETF Trust all edged higher in overnight trading. The iShares 20+ Year Treasury Bond ETF was up 0.04% amid neutral sentiment.
Semiconductor Stocks Reverse Three-Day Decline
Semiconductor stocks edged higher on Monday despite broader market weakness. The VanEck Semiconductor ETF closed up 0.41%, reversing three consecutive days of declines. Micron Technology Inc., Broadcom Inc., and Intel Corp. rose about 2% at close, while memory chipmaker Sandisk Corp. climbed over 2.6%. The iShares Semiconductor ETF rose 0.45% at close, and the Invesco PHLX Semiconductor ETF gained 0.61%. James E. Thorne, chief market strategist at Wellington-Altus Private Wealth, said in a post on X that the AI trade is not over and memory is a buy. However, Yardeni Research pointed to the return of "DeepSeek fears" in a post on X on Monday, noting that markets were spooked by Moonshot's Kimi K3 model launch, and stated that the SOXX and S&P 500 Semis index could slide 12% more to key technical support.
US Launches Tenth Consecutive Day of Strikes on Iran
Tensions in the Middle East continued to rise as the US launched a tenth consecutive day of strikes on Iran. President Donald Trump said in a post on Truth Social that every time Iran kills an American soldier they will pay for that killing many times over. The comments came after three US service members died in the recent conflict in the Middle East over the weekend. The US Central Command said in a post on X that a fresh round of attacks on Iran were conducted on Monday evening, designed to further degrade Iranian military capabilities used to attack commercial shipping in the Strait of Hormuz. Adam Crisafulli of Vital Knowledge wrote that investors still don't think Trump has the tolerance for a material escalation of the US force posture in the Middle East and if that's the case, then some type of a diplomatic resolution is inevitable, according to a report from CNBC.
Oil Prices Climb Above $90 Before Retreating
Brent crude climbed above $90 a barrel on Monday before declining late in the session. Brent crude futures expiring in September fell about 0.85% to $88.46 per barrel at the time of writing, reversing from its climb to over $90 per barrel during the day. WTI crude futures expiring in August also fell 0.3% to $82.98 per barrel. Yields on the 10-year Treasury were at 4.592% at the time of writing, while spot gold prices were trading at $4,029.09 per ounce.
IREN Raises Revenue Target Following $2.8 Billion Contract Wins
IREN Ltd.'s shares jumped by over 19% at close on Monday after the AI cloud provider raised its year-end AI Cloud annualized run-rate revenue target from $3.7 billion to more than $4 billion. The increase followed new multi-year contracts worth $2.8 billion in total contract value.
Archer Aviation Announces Autonomous VTOL Platform with Anduril
Archer Aviation Inc. jumped nearly 20% at close and continued to climb overnight amid the announcement of an autonomous VTOL aircraft platform for both defense and commercial applications alongside Anduril. The eVTOL company's shares drew significant retail attention following the partnership announcement.
Boeing Secures 100 Aircraft Order from SMBC Aviation Capital
Boeing Co. garnered attention after it announced that SMBC Aviation Capital had ordered 100 737 MAX airplanes. The aircraft-maker's announcement came as the company continues to rebuild its commercial aircraft order book.
Alphabet and Tesla Report Earnings Wednesday
On the earnings front, Alphabet Inc. and Tesla Inc. are scheduled to report their second-quarter results on Wednesday. Chip giant Intel will report its Q2 results on Thursday. General Motors Co., AT&T Inc., International Business Machines Corp., ServiceNow Inc., and Verizon Communications Inc. will also post results this week. Tesla was on the retail radar ahead of its earnings results expected on Wednesday.
Asian Markets Trade Mixed on Semiconductor Strength
Asian markets were trading mixed at the open on Monday. South Korea's KOSPI, Japan's Nikkei 225, and China's SSE Composite index climbed at the time of writing due to the strong chip sector performance. However, Australian stocks were trading in the red at the open.
FAQ
What caused US stock futures to rise late Monday?
US stock futures climbed in overnight trading late Monday as semiconductor stocks gained, with the VanEck Semiconductor ETF closing up 0.41% after reversing three consecutive days of declines. The chip rally helped offset investor concerns over the US-Iran conflict, which entered its tenth consecutive day of American military strikes.
Why did US stocks close lower on Monday despite the semiconductor rally?
US stock markets closed lower on Monday as rising oil prices amid escalating tensions in the Middle East weighed on returns. Brent crude climbed above $90 a barrel during the session. The Dow Jones Industrial Average fell 0.59% to 51,839.26, the S&P 500 declined 0.19% to 7,443.28, and the Nasdaq dropped 0.05% to 25,508.07.
Which major companies report earnings on Wednesday?
Alphabet Inc. and Tesla Inc. are scheduled to report their second-quarter results on Wednesday. Chip giant Intel will report its Q2 results on Thursday, while General Motors Co., AT&T Inc., International Business Machines Corp., ServiceNow Inc., and Verizon Communications Inc. will also post results this week.
