U.S. stock futures rose in overnight trading Monday as June opened near record highs, with Dow futures jumping 250 points. All three major indexes closed out a strong May with solid gains, setting the stage for continued optimism.
The rally has been fueled by artificial intelligence optimism, particularly around Nvidia, which is leading on new chip announcements. The S&P 500's nine-week winning streak is historically rare, and some analysts question how much longer it can persist without a pullback.
Oil prices edged higher as efforts to secure a US-Iran peace deal showed little progress. Asian shares fell from record highs as investors paused after the blistering AI-driven rally, with war stalemate concerns tempering risk appetite.
Wall Street's risk rally has powered past geopolitical uncertainty, but the disconnect between soaring equities and global conflict remains a key risk for investors. If peace talks falter further, energy prices could spike and pressure corporate margins.
Bloomberg notes that the rally's breadth is narrow, concentrated in AI-related names, leaving the broader market vulnerable to a sudden reversal if sentiment shifts.