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June 1, 2026 - 10:04
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(Bloomberg) — The artificial-intelligence trade locked in fresh gains on Monday, allowing global equities to shrug off a rebound in oil prices as the US and Iran remained deadlocked over a peace deal.Futures pointed to another all-time high for the S&P 500 at the start of June after a breakneck rally in chipmakers helped drive the benchmark to 11 record closes last month. Index contracts rose 0.2%, while those on the Nasdaq 100 climbed 0.3%.MSCI Inc.’s key gauge for Asia advanced 0.9%. SoftBank Group Corp., whose investments include chip designer Arm Holdings Plc and OpenAI, surged 14% to overtake Toyota Motor Corp. as Japan’s most valuable company. Europe was the exception to the upbeat mood elsewhere, with the Stoxx 600 down 0.2%.Brent headed for its first daily gain in four sessions. The benchmark rose 3% toward $94 a barrel as it remained unclear whether the US and Iran were making progress toward an agreement on a lasting ceasefire and the resumption of oil flows through the Strait of Hormuz. Bonds fell, with the 10-year Treasury yield rising two basis points to 4.46%.“The rally in tech stocks is coherent when one looks at the earnings and profits of both the supplier of AI infrastructure and the hyperscalers,” said Mabrouk Chetouane, head of global market strategy at Natixis Global Asset Management. “There are those who claim there’s a bubble, but I simply see rising profits and a super cycle.”In the latest developments in the Middle East, an Iranian ballistic missile strike on a Kuwaiti air base caused minor injuries to several Americans, while Israel stepped up its offensive against Tehran-backed Hezbollah in Lebanon. The US also conducted “self-defense strikes” on Iranian radar and command and control sites for drones in Goruk, Iran and Qeshm Island this weekend.Meanwhile, the US and Iran exchanged messages seeking amendments to a draft agreement. US President Donald Trump urged calm on the Iran deal, saying it will all work out well. Iran said Israel’s attacks on Lebanon were preventing a deal with the US.“Market needs an agreement to open the Strait of Hormuz, to provide the next leg higher in equities and lower in rates,” Jefferies strategist Mohit Kumar told clients. “We still believe that we should get a leg higher when a deal is finally agreed upon.”He added, however, that while he’s been in the bullish camp for equities, he would now recommend reducing some long positions.Corporate News:Nvidia Corp. is entering the PC market with a new chip aimed at loosening the stranglehold of Intel Corp. technology in that arena and modernizing the machines for the AI era. Nvidia said Anthropic PBC, OpenAI and SpaceX are among the first big users of its upcoming microprocessor, securing key customers for its latest attempt to expand an already extensive footprint in AI data centers. EasyJet Plc shares jump as much as 13% to the highest in three months after Castlelake said late Friday that it is considering an offer for the UK budget carrier. Berkshire Hathaway Inc. will acquire Taylor Morrison Home Corp. in an all-cash deal worth about $6.8 billion, the first major purchase under chief executive Greg Abel and a vote of confidence in the US housing market. Some of the main moves in markets:StocksThe Stoxx Europe 600 fell 0.2% as of 9 a.m. London time S&P 500 futures rose 0.2% Nasdaq 100 futures rose 0.3% Futures on the Dow Jones Industrial Average were little changed The MSCI Asia Pacific Index rose 0.9% The MSCI Emerging Markets Index rose 1.5% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1657 The Japanese yen fell 0.1% to 159.47 per dollar The offshore yuan was little changed at 6.7649 per dollar The British pound was little changed at $1.3461 CryptocurrenciesBitcoin fell 1.2% to $72,717.16 Ether fell 1.6% to $1,973.32 BondsThe yield on 10-year Treasuries advanced two basis points to 4.46% Germany’s 10-year yield advanced four basis points to 2.97% Britain’s 10-year yield advanced two basis points to 4.84% CommoditiesBrent crude rose 3% to $93.89 a barrel Spot gold fell 0.8% to $4,502.98 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Neil Campling.©2026 Bloomberg L.P.
