U.S. stock futures slipped slightly on Monday evening after a positive Wall Street session led by technology and semiconductor shares. The pullback came as caution returned to markets due to renewed Middle East tensions and a clear selloff in Asian technology stocks.
S&P 500 futures fell 0.2% to 7,578 points, while Nasdaq 100 futures dropped 0.7% to 29,708.75 points. Dow Jones futures moved against the broader trend, rising 0.2% to 53,470 points.
The regular Wall Street session ended with strong gains. The Dow Jones Industrial Average closed at a fresh record above 53,000 points, while the Nasdaq Composite rose 1.1% and the S&P 500 gained 0.7%, supported by a recovery in semiconductor stocks.
Broadcom helped lift the sector after extending its chip development agreement with Apple through 2031, pushing the Philadelphia Semiconductor Index up more than 2%. Strong earnings expectations from Samsung Electronics also supported sentiment toward chipmakers, especially as demand for AI memory chips remains solid while industry supply stays tight.
However, optimism around technology was not enough to remove caution from the market. Middle East tensions returned to focus after reports said Iran fired missiles at commercial ships in the Strait of Hormuz, reviving concerns over shipping security and its potential impact on energy prices and inflation.
On the monetary policy front, markets are waiting for the Federal Reserve’s June meeting minutes, due on Wednesday, for clearer signals on the path of U.S. interest rates. Although weaker employment data reduced the chances of a July rate hike, persistent inflation continues to prevent markets from fully ruling out a hawkish Fed stance.
Corporate earnings will also gain more attention this week, with PepsiCo and Delta Air Lines scheduled to report before major U.S. banks release their results next week. Investors are also watching SpaceX’s inclusion in the Nasdaq 100, which is expected to increase trading volumes while scrutiny of the AI sector’s momentum continues.
In currency markets, the Japanese yen received limited support from wage data showing growth for a fifth consecutive month in May. This remains an important factor for the Bank of Japan as it evaluates further rate increases. Even so, the yen stayed close to its weakest levels since 1986, keeping the risk of intervention by Tokyo firmly in traders’ calculations.
Although the Bank of Japan raised interest rates by 25 basis points in June and signaled readiness for further increases, pressure on the yen has not faded. Concerns over Japan’s fiscal spending plans and its already heavy debt burden remain major headwinds. Japan’s economic policy minister Minoru Kiuchi also rejected reports suggesting the government was pressuring the central bank to keep interest rates low.
The dollar traded in a narrow range during the Asian session after sharp losses last week following weak jobs data. Despite softer expectations for a near term rate hike, the currency continues to find some support from expectations that the Federal Reserve may remain firm if inflation proves difficult to contain.
Markets are now focused on the Fed minutes, not only for clues on interest rates but also for the tone of communication under Chair Kevin Warsh. Elsewhere in currencies, the Chinese yuan held steady ahead of inflation data, the Australian dollar slipped slightly, and the South Korean won weakened amid heavy selling pressure in local equities.
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