U.S. stock futures traded in positive territory early Monday, indicating Wall Street could open with gains as investors continue to embrace the artificial intelligence theme following Nvidia’s (NASDAQ:NVDA) latest product launch.
The upbeat mood follows a record-setting finish to last week, when the major U.S. indices closed at all-time highs despite ongoing geopolitical uncertainty.
Nvidia and Microsoft Showcase Next-Generation AI Computing
Technology stocks attracted fresh attention after Nvidia (NASDAQ:NVDA) introduced RTX Spark, a new AI-focused processor platform developed alongside Microsoft (NASDAQ:MSFT).
According to Nvidia, the new technology is designed to redefine the Windows PC experience by enabling advanced personal AI assistants to handle tasks directly on users’ devices.
“The PC is being reinvented,” said NVIDIA founder and CEO Jensen Huang. “For forty years, you launched apps. Click. Type. With RTX Spark and Microsoft Windows, you ask — and the PC does the work.”
Investors welcomed the announcement, sending Nvidia shares 2.4% higher in premarket trading. Microsoft also advanced 3.8%.
Hardware manufacturers Dell (NYSE:DELL) and HP (NYSE:HPE) moved sharply higher as traders assessed the potential for a new upgrade cycle driven by AI-capable computers.
Geopolitical Risks Continue to Influence Markets
Despite enthusiasm surrounding artificial intelligence, investors remained focused on developments in the Middle East.
Crude oil prices climbed after U.S. Central Command announced that American forces carried out “self-defense strikes” against Iranian drone-control and radar facilities over the weekend.
Iran’s Islamic Revolutionary Guard Corps later stated that it had targeted an air base allegedly connected to a U.S. operation against a telecommunications site on Sirik Island in southern Iran.
The exchange of military actions contributed to renewed concerns over regional stability and energy supplies.
Trump Maintains Optimistic Tone on Negotiations
President Donald Trump attempted to calm concerns over the situation, signaling confidence that diplomatic efforts could still produce results.
Posting on Truth Social early Monday, Trump stated that “Iran really wants to make a deal” and urged observers to remain patient as discussions continue.
“Just sit back and relax, it will all work out well in the end – It always does!” Trump said.
Market participants continue to watch negotiations closely for indications that tensions could ease in the coming weeks.
Major U.S. Indices End Week at Record Levels
Wall Street finished Friday’s session with modest gains despite intermittent volatility throughout the day.
The Dow Jones Industrial Average rose 363.49 points, or 0.7%, to close at 51,032.46.
The Nasdaq Composite added 55.15 points, or 0.2%, ending at 26,972.62, while the S&P 500 gained 16.43 points, or 0.2%, to finish at 7,580.06.
All three benchmarks established new record closing highs.
For the holiday-shortened week, the Nasdaq advanced 2.4%, the S&P 500 climbed 1.4%, and the Dow gained 0.9%.
Investors Await Details on Possible U.S.-Iran Agreement
Traders remain encouraged by reports suggesting progress toward a broader agreement between the United States and Iran, although many are waiting for official confirmation before making larger bets.
Recent media reports indicated that negotiators may have agreed on the framework of a 60-day ceasefire extension.
Such an arrangement could eventually lead to the reopening of the Strait of Hormuz and support renewed discussions regarding Iran’s nuclear activities, though President Trump has yet to formally approve the proposal.
In a separate Truth Social post, Trump said he would meet with advisors in the situation room to make a “final determination” regarding the agreement.
He also noted that several secondary issues had already been addressed but stressed that Iran must commit to never obtaining a nuclear weapon and must reopen the Strait of Hormuz immediately without imposing transit fees.
Dell’s Earnings Rally Reinforces Tech Sector Leadership
Technology shares received another boost from Dell Technologies (NYSE:DELL), whose stock soared more than 33.7% on Friday.
The move followed stronger-than-expected fiscal first-quarter results and an increase in the company’s full-year outlook.
Dell’s rally helped propel the NYSE Arca Computer Hardware Index 8.6% higher, lifting the benchmark to a record closing level.
NetApp and Software Companies Join the Advance
NetApp (NASDAQ:NTAP) was also among the session’s top performers, surging 22.4% after posting quarterly earnings that exceeded expectations and issuing upbeat guidance.
Software stocks participated in the broader technology rally, with the Dow Jones U.S. Software Index climbing 6.2% to its strongest close in four months.
Elsewhere, gold-related shares and brokerage firms recorded notable gains, while telecom, retail and natural gas stocks lagged the broader market.
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