The S&P 500 Index closed up 0.94% on Monday, while the Dow Jones Industrial Average rose 0.75%, and the Nasdaq 100 increased by 1.42%. June E-mini S&P futures and Nasdaq futures were up 1.00% and 1.38%, respectively. Stock markets rallied amid hopes that hostilities between Israel and Iran will remain contained, despite ongoing violence entering its fourth day.
Investors are monitoring the G-7 meeting in Banff, Canada, amid potential trade developments. Negative US economic data, including a drop in the Empire manufacturing index from -6.8 to -16.0, contributed to market sentiment. A focus on upcoming economic reports is expected, including a May retail sales estimate of -0.6% m/m and a two-day FOMC meeting starting on Tuesday, where rates are anticipated to remain unchanged at 4.25%-4.50%.
Chip stocks, such as Advanced Micro Devices and ON Semiconductor, led the market gainers, and travel-related stocks also benefited from lowered crude oil prices following hopes of reduced Middle Eastern tensions. Conversely, defense stocks declined on indications that Iran is seeking to de-escalate its conflict with Israel.
