Nasdaq futures rise after worst day in over a year; oil jumps

U.S. Stock Futures Rise After Nasdaq's Largest Single-Day Drop Since April 2025; Oil Prices Increase

U.S. stock futures pointed higher Monday morning after the Nasdaq Composite recorded its largest single-day percentage decline since April 2025, while renewed exchanges between Iran and Israel lifted oil prices. Nasdaq 100 futures indicated a 1.2% gain at the open, S&P 500 futures rose 0.6%, and Dow futures added approximately 100 points. The moves followed Friday's session, when the Nasdaq Composite fell 4.2% and the S&P 500 declined 2.6%, marking the S&P 500's steepest one-day drop in roughly 10 months.

Semiconductor stocks led premarket trading. Micron Technology, which declined 13% on Friday, rose more than 5% before the open. Nvidia and Broadcom also traded higher. The iShares Semiconductor ETF, which dropped 10% on Friday—its largest single-day decline in over six years—recovered nearly 4% in premarket trading.

A stronger-than-expected May employment report and a broad pullback in artificial-intelligence-related shares contributed to Friday's declines. In Asia, markets extended the weakness. South Korea's Kospi index fell more than 8%, pressured by declines in Samsung Electronics and SK Hynix. Japan's Nikkei 225 dropped 3.85% to close at 64,024.6.

Crude oil prices rose after Iran launched missiles toward Israel on Sunday and Israeli forces conducted strikes on Iranian defense facilities on Monday. West Texas Intermediate crude briefly exceeded $92 per barrel, up more than 1%, while Brent futures reached approximately $94.69. Prices later retreated from those levels after President Donald Trump stated that both countries were seeking an immediate ceasefire and urged an end to the hostilities.

Treasury yields increased as bond markets priced in a higher probability of Federal Reserve rate increases before the end of the year. The May consumer price index report, scheduled for release on Wednesday, is expected to provide additional data for policymakers.

Callie Cox, chief market strategist at Ritholtz Wealth Management, said the stock market may be experiencing the effects of prior gains. She noted that the labor market has strengthened while concerns about sustained inflation remain. Cox also observed that since March lows, growth- and momentum-focused strategies have outperformed other approaches, a pattern that could face pressure if inflation remains elevated.