Key facts
- US stock futures rose, led by the Nasdaq 100, as Middle East tensions eased.
- European shares were steady, with technology stocks leading gains.
- Nagarro shares surged 90% after an acquisition offer from Persistent.
- The broader tech sector rose after its largest weekly fall since mid-March.
- Concerns over AI valuations and inflation pressures contributed to market volatility.
- A ceasefire between the U.S. and Iran was agreed upon.
- Crude oil prices edged up slightly.
- J.P. Morgan raised its year-end target for European equities.
- SpaceX will be added to the Nasdaq 100 index on July 7.
- Viridian Therapeutics shares jumped after FDA drug approval.
U.S. stock index futures rose on Monday, led by strong gains in the tech-heavy Nasdaq 100, as easing Middle East tensions lifted sentiment. A U.S. official stated that both sides would de-escalate and renew talks to end the conflict, bolstering hopes that an interim peace deal could hold.
European shares were steady, with technology stocks leading gains, as investors assessed a fragile ceasefire in the Middle East and looked ahead to central bank commentary. The pan-European STOXX 600 index was flat at 636.13 points. Technology stocks led sectoral gains with a 1.1% rise. Nagarro shares soared 90% after India's Persistent made an offer to acquire the AI-led digital engineering firm. The broader tech sector's advance followed its biggest weekly fall since mid-March, driven by concerns over AI valuations and expectations of further interest rate hikes to combat inflation.
While diplomatic efforts have calmed investors, rhetoric and flare-ups in the region have at times raised the risk of broader escalation that could push oil prices higher. Crude prices edged up 0.6% to $72 a barrel. Traders are sticking with expectations for modest U.S. rate hikes, though on the basis of strong U.S. growth rather than runaway inflation. Bonds were mostly unmoved by the U.S. Supreme Court's refusal to let President Donald Trump fire Fed governor Lisa Cook.
In premarket trading, SpaceX rose 1.2% after Nasdaq announced the company will be added to the Nasdaq 100 index on July 7. Shares of Viridian Therapeutics jumped 12.7% after the U.S. Food and Drug Administration approved its drug to treat patients with thyroid eye disease. The AI rally has continued, with South Korea's KOSPI index up 100% in the first half and Japan's Nikkei up about 36% for the quarter. However, foreign cash has been streaming out of South Korea as investors take profits.