U.S. stock futures traded modestly lower on Monday morning, suggesting a softer opening for Wall Street after major indexes posted strong gains at the end of last week.
The cautious tone followed Friday’s rally, which pushed both the Nasdaq and the S&P 500 to fresh record closing highs, prompting some investors to lock in recent profits.
Oil Rally Adds Pressure to Market Mood
Investor sentiment was also affected by another sharp rise in crude oil prices, with U.S. oil futures climbing more than 2%.
Energy markets moved higher after President Donald Trump rejected Iran’s response to a U.S.-led peace initiative aimed at ending the prolonged Middle East conflict, calling the proposal “totally unacceptable” on Truth Social.
Iranian state media reported that Tehran’s counteroffer included requests for compensation linked to war damages and demands for international recognition of Iran’s control over the Strait of Hormuz.
Even with geopolitical tensions escalating, U.S. equities have continued to show resilience in recent weeks, helped by strong corporate earnings and optimism surrounding economic conditions.
Inflation Data and Earnings to Drive Attention
Markets are expected to focus heavily on upcoming U.S. inflation figures this week, including reports on consumer and producer prices, as traders evaluate the impact of higher energy prices on inflation trends.
Investors will also be watching retail sales and industrial production data, alongside earnings releases from companies such as Under Armour (NYSE:UAA) and Cisco Systems (NASDAQ:CSCO).
Nasdaq and S&P 500 Closed Last Week at New Highs
Stocks rebounded sharply on Friday after weakness during Thursday’s session, with technology shares once again leading the advance.
The Nasdaq Composite jumped 440.88 points, or 1.7%, ending at a record closing high of 26,247.08. The S&P 500 rose 61.82 points, or 0.8%, to finish at 7,398.93, while the Dow Jones Industrial Average added 12.19 points to close at 49,609.19.
For the week overall, the Nasdaq surged 4.4%, the S&P 500 gained 2.3%, and the Dow edged higher by 0.2%.
Strong April Jobs Data Supported Market Optimism
Friday’s rally was fuelled in part by stronger-than-expected U.S. employment figures released by the Labor Department.
Non-farm payrolls increased by 115,000 jobs in April following an upwardly revised gain of 185,000 in March.
Economists had forecast an increase of just 63,000 jobs compared with the originally reported 178,000 gain in the previous month.
The report showed particularly strong hiring in healthcare, transportation and warehousing, and retail, while federal government employment continued to decline slightly.
Meanwhile, the unemployment rate held steady at 4.3% in April, matching both the previous month’s figure and analyst expectations.
Middle East Conflict Continues to Shape Markets
The labor market data helped reduce some concerns about the economic impact of the conflict in the Middle East, despite renewed military activity between the United States and Iran near the Strait of Hormuz overnight.
Reports indicated that three U.S. destroyers were targeted by Iranian missiles and drones while moving through the strait. U.S. Central Command stated that incoming threats were intercepted and that retaliatory strikes hit Iranian military facilities connected to the attacks.
In a later interview with ABC News journalist Rachel Scott, President Trump described the strikes against Iranian targets as “just a love tap” and maintained that the ceasefire agreement was still active.
U.S. Central Command also said American forces disabled two Iranian-flagged oil tankers attempting to dock at an Iranian port in the Gulf of Oman.
Tech and Gold Shares Lead Sector Performance
Technology-related sectors delivered some of the strongest gains on Friday, helping power the Nasdaq to another record finish.
The NYSE Arca Computer Hardware Index climbed 6.6%, while the Philadelphia Semiconductor Index advanced 5.5%.
Gold-related shares also moved sharply higher as bullion prices edged upward, lifting the NYSE Arca Gold Bugs Index by 3.2%.
Networking, steel and telecommunications stocks also performed strongly, while pharmaceutical companies lagged behind the broader market.
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