U.S. stock futures retreated in overnight trading late Monday after benchmark indexes surged to records during market hours. Dow futures were flat, S&P 500 futures fell approximately 0.12%, and Nasdaq 100 futures traded 0.24% lower as of 9.25 p.m ET. The retreat followed Monday's rally driven by a breakthrough U.S.-Iran peace deal and continued momentum in SpaceX shares. Markets are awaiting the first Federal Reserve meeting under new Chair Kevin Warsh later this week.
U.S. Indexes Close Higher on Monday
All three benchmark indexes closed higher on Monday. The Dow Jones Industrial Average gained 0.92% to close at 51,671.03, reaching a new all-time intraday high before adding more than 460 points. The S&P 500 climbed 1.65% to 7,554.29, while the Nasdaq Composite jumped 3.07% to 26,683.94, marking its best session since March 31.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), Invesco QQQ Trust (QQQ), and SPDR Dow Jones Industrial Average ETF Trust (DIA) all traded in the red during overnight hours. The iShares 20+ Year Treasury Bond ETF (TLT) traded 0.14% lower.
U.S.-Iran Deal Eases Middle East Tensions
U.S. President Donald Trump confirmed in a post on Truth Social late Sunday that a deal with Iran had been finalized. The agreement will end hostilities in the Middle East and reopen the Strait of Hormuz, easing pressure on global energy supplies. Trump stated the critical waterways would open soon after the official signing, expected in Switzerland on June 19. A senior official confirmed to CNBC that the deal had already been signed electronically.
Oil prices declined on Monday following the announcement. Gene Goldman, chief investment officer at Cetera Investment Management in El Segundo, California, told Reuters: "Markets are higher on a classic relief rally. We have a U.S.-Iran deal that's driving oil sharply lower. This is easing inflation fears and basically pushing investors back into risk assets like technology."
SpaceX Market Cap Breaches $2.52 Trillion
SpaceX (SPCX) shares jumped 20% at Monday's close, with the company's market capitalization breaching $2.52 trillion following its historic debut last week. The stock continued its rally in overnight trading, climbing more than 10%. One Wall Street analyst noted that SpaceX would need a 50x increase in revenue over the next five years to justify its valuation.
Chip stocks also surged on Monday. Nvidia Corp. (NVDA) closed up 3.54% after announcing it would offer investment-grade corporate bonds for the first time in five years. Micron Technology (MU) gained nearly 11% at close, and Sandisk Corp. (SNDK) rose 6.45%.
Federal Reserve Meeting Scheduled for Wednesday
Markets will focus on the Federal Reserve's meeting on Wednesday, the first under Chair Kevin Warsh. A majority of market participants expect the central bank to keep rates steady. Fabio Bassi, head of cross-asset strategy at JPMorgan Chase & Co., told Bloomberg: "Investors believe the decline in oil prices will reduce the need for more aggressive hikes by the developed-market central banks. Investors are used to the ebb and flow of the news in the Middle East and therefore a lingering skepticism remains."
Individual Stock Movements After Hours
Tesla Inc. (TSLA) gained attention amid speculation about a potential future merger with SpaceX.
Dave & Buster's Entertainment (PLAY) shares slumped more than 11% after-hours following a decline in its first-quarter profit and revenue.
Fiserv, Inc. (FISV) shares slumped to their worst close since October 2025 and continued declining in overnight trading after CEO Mike Lyons stepped down abruptly to join Truist Financial.
Commodities and Asian Markets Update
Oil prices edged higher in overnight trading late Monday after declining during market hours. Brent crude futures expiring in August gained 0.28% to trade around $83.40 a barrel, while WTI crude futures expiring in July rose 0.42% to around $81.09 a barrel.
Yields on the 10-year Treasury climbed to 4.473%. Gold prices climbed to around $4,314.39 an ounce.
Asian markets traded mixed at Tuesday's open. South Korea's KOSPI rose approximately 0.59%, while Japan's Nikkei 225 and the SSE Composite index edged lower. Australian stocks fell at the open.
FAQ
What caused U.S. stock futures to retreat late Monday?
U.S. stock futures retreated in overnight trading late Monday after benchmark indexes surged to records during market hours, with Dow futures flat, S&P 500 futures down 0.12%, and Nasdaq 100 futures down 0.24% as of 9.25 p.m ET.
What did President Trump announce about the U.S.-Iran deal?
President Donald Trump confirmed in a Truth Social post late Sunday that a deal with Iran had been finalized to end hostilities in the Middle East and reopen the Strait of Hormuz, with official signing expected in Switzerland on June 19.
How did SpaceX perform on Monday?
SpaceX (SPCX) shares jumped 20% at Monday's close, with the company's market capitalization breaching $2.52 trillion, and continued rallying more than 10% in overnight trading.
