Friday saw the Dow Jones drop 770 points, while the S&P 500 and Nasdaq lost more than 1% each as investors pulled back due to growing geopolitical tensions and profit booking. This week is also shortened due to the Memorial Day holiday in the U.S., adding to the volatility.
US stock market futures rise as investors eye Fed meeting, Israel-Iran updates
U.S. stock market futures are climbing this morning as Wall Street gears up for a busy week filled with geopolitical headlines and a key Federal Reserve meeting. Traders seem cautiously optimistic, with oil prices cooling off slightly and tech names rebounding from recent dips.
How are the major US stock futures performing today?
Dow Jones futures are up about 0.41% to 0.57%, gaining around 175–213 points, trading near 42,700. S&P 500 futures are showing a gain of roughly 0.48% to 0.50%, pushing the index toward the 6,070 mark. Nasdaq 100 futures are rising about 0.56% to 0.67%, adding 120 to 130 points, hovering around 21,770 to 21,990. These numbers suggest a strong start to the week, barring any major surprises from global developments or policy announcements.
What’s boosting investor confidence this morning?
Middle East tensions cooling: After last week’s market jitters over the Israel–Iran conflict, oil prices are easing, offering relief on the inflation front. Fed in focus: Investors are closely watching the Federal Reserve’s upcoming meeting. While rates are expected to stay steady, all eyes will be on any forward guidance about potential rate cuts later in 2025. Tech and biotech rebound: A surge in some tech and healthcare stocks is also helping lift market sentiment in early trading.
Top-performing stocks in premarket trading
Here are today’s biggest premarket gainers:
Regencell Bioscience: Soaring nearly +59%, leading all gainers on strong investor momentum. EchoStar Corp: Rallying about +44%, one of the biggest movers of the morning. Incyte Corp: Up +8.1% after encouraging results from a blood cancer treatment trial. U.S. Steel: Climbing +5.1% following regulatory progress in its deal with Nippon Steel. Tesla: Adding +1.7–1.8% as excitement builds ahead of its robotaxi announcement this summer.
Biggest stock losers to watch
While some names are soaring, others are facing heavy premarket selling: Sarepta Therapeutics: Crashing –37% to –42.5% after halting a key trial due to a second reported death—triggering major safety concerns. Neurocrine Biosciences: Down about –3.5%, under modest pressure with no clear catalyst. Trade Desk: Dropping –2.8%, one of the notable tech names facing early weakness.
What should investors keep an eye on today?
Oil prices: A renewed surge in crude could quickly sour sentiment and reignite inflation fears. Federal Reserve guidance: Markets are hoping for signals that rate cuts are still possible this year—possibly as early as September. Volatility index: The CBOE VIX is up over 15%, reflecting nervousness in the market even amid gains.
Why are US stock futures rebounding despite global tensions?
After opening in the red, Dow Jones futures, which had dropped as much as 150 points overnight, rebounded by 175 points. S&P 500 and Nasdaq futures also bounced back to flat levels. According to analysts, the bounce is technical, as investors look for bargain opportunities after Friday’s steep drop. However, the recovery is tentative, with traders keeping a close eye on developments in the Strait of Hormuz, where the UK Navy reported interference, possibly threatening global oil flows.
How is the Israel-Iran conflict affecting global market sentiment?
This is the fourth day of escalating hostilities between Israel and Iran, with reports that Israel struck key energy infrastructure inside Iran. The conflict has significantly affected investor sentiment, driving a shift toward safe-haven assets like gold and the U.S. dollar. On Friday, the Dow Jones fell by 770 points, a clear sign that geopolitical risk is weighing heavily on market direction. With President Donald Trump calling for Iran to “make a deal,” the geopolitical tension continues to inject uncertainty into the market.
What is happening with oil and gold prices amid the conflict?
Oil prices opened higher in early trading after reports of damage to Iran’s Natanz nuclear facility, but later failed to hold above the $75 per barrel level. Analysts say this signals that while investors are wary, they are still not pricing in a full-scale supply disruption. Meanwhile, gold prices have continued to climb, supported by strong haven demand. The metal has remained one of the few safe investment avenues amid the turmoil, while the U.S. Dollar Index is back above 98, showing increased demand for dollar-backed assets.
What’s the outlook for US equities with central bank decisions this week?
Investors are also focused on this week’s FOMC meeting, along with policy decisions from other central banks like the European Central Bank (ECB) and Bank of Japan (BoJ). Although no rate hike is expected from the Fed, the market will look for any signals on the timing of future moves, especially in light of rising global tensions. With U.S. inflation still sticky and energy prices in flux, the Federal Reserve’s language in the policy statement will be closely analyzed by market participants.
How should investors react to the current stock market volatility?
With geopolitical tensions and central bank meetings both in focus, investors are advised to stay cautious and not overreact to short-term swings. Volatility is likely to continue, especially if the conflict escalates or disrupts global oil supply routes like the Strait of Hormuz. Traders are shifting allocations toward more defensive assets, and any major breakout in the market may depend on clarity from the FOMC meeting or a de-escalation in West Asia.
FAQs:
Q1. Why are US stock market futures rising today despite global tensions?
Because investors are cautiously buying back after Friday’s drop, while watching the Israel-Iran conflict and FOMC updates.
Q2. How is the Israel-Iran conflict affecting oil, gold, and US stocks?
It’s pushing oil and gold prices up and making the stock market more volatile and sensitive to global risks.
