The major U.S. index futures are currently pointing to a higher open on Monday, with stocks likely to regain ground following the sell-off seen during last Friday's session.
Bargain hunting may contribute to initial strength on Wall Street following last Friday's plunge, which dragged the tech-heavy Nasdaq down to its lowest closing level in a month.
Technology stocks may help lead the rebound after plummeting in the previous session, as reflected by the 1.5 percent jump by the Nasdaq 100 futures.
Shares of Nvidia (NVDA) are surging by 2.6 percent in pre-market trading after the AI giant announced a multiyear technology partnership with SK hynix to advance next-generation memory for the global AI factory buildout and accelerate semiconductor design and manufacturing.
Buying interest may be somewhat subdued, however, as concerns about developments in the Middle East continue to hang over the markets.
Iran and Israel reportedly exchanged missile strikes on Sunday, leading to a spike in crude oil prices amid worries about a re-escalation of the conflict.
However, crude oil prices pulled back well off their highs after President Donald Trump claimed Israel and Iran are "looking to do an immediate ceasefire."
"Final negotiations on 'Peace' are proceeding, subject to ignorance or stupidity getting in its way," Trump said in a post on Truth Social. "The Blockade will remain in place, and in full force and effect, until a 'Final Deal' is reached. Things should move quickly."
After coming under considerable pressure early in the session, stocks showed an even more substantial move to the downside over the course of trading day on Friday. The major averages all moved sharply lower, with the tech-heavy Nasdaq posting a particularly steep loss.
The major averages ended the day just off their lows of the session. The Nasdaq plunged 1,121.53 points or 4.2 percent to 25,709.43, the S&P 500 tumbled 200.57 points or 2.6 percent to 7,383.74 and the Dow slumped 695.15 points or 1.4 percent to 50,886.78.
With the steep losses on the day, the major averages all moved lower for the week. The Nasdaq plummeted by 4.7 percent, the S&P 500 dove by 2.9 percent and the Dow dipped by 0.3 percent.
The sell-off on Wall Street came as technology stocks remained under pressure after seeing notable weakness during Thursday's session.
Yesterday's negative reaction to Broadcom's (AVGO) guidance continued to generate selling pressure amid concerns about valuations.
"The market is no longer asking whether AI demand is strong, that has largely been established," said Daniela Hathorn, Senior Market Analyst at Capital.com. "Instead, investors are beginning to question how much of that growth is already reflected in valuations."
She added, "In that sense, Broadcom's results may not have been disappointing, but they were perhaps not enough to justify another leg higher immediately after such a powerful rally."
Profit taking also contributed to the substantial weakness following recent strength in the markets, which lifted the Nasdaq and S&P 500 to record closing highs on Tuesday. The Dow also ended Thursday's session at a record closing high.
A sharp increase by treasury yields also weighed on Wall Street, with yields surging following the release of stronger than expected U.S. jobs data.
The Labor Department released a report showing non-farm payroll employment shot up by 172,000 jobs in May after surging by an upwardly revised 179,000 jobs in April.
Economists had expected employment to climb by 85,000 jobs compared to the addition of 115,000 jobs originally reported for the previous month.
The data has added to recent speculation that the Federal Reserve will leave interest rates at their current level for an extended period.
Semiconductor and computer hardware stocks turned in some of the market's worst performances on the day, with the Philadelphia Semiconductor Index and the NYSE Arca Computer Hardware Index plummeting by 10.3 percent and 9.1 percent, respectively.
Outside of the tech sector, gold stocks also saw substantial weakness amid a steep drop by the price of the precious metal, resulting in an 8.4 percent nosedive by the NYSE Arca Gold Bugs Index.
Networking, oil service and software stocks also showed significant moves to the downside, while utilities and pharmaceutical stocks bucked the downtrend.
Commodity, Currency Markets
Crude oil futures are jumping $1.09 to $91.63 a barrel after plunging $2.50 to $90.54 a barrel last Friday. Meanwhile, after plummeting $139.70 to $4,365.30 an ounce in the previous session, gold futures are falling $12.60 to $4,352.70 an ounce.
On the currency front, the U.S. dollar is trading at 159.92 yen versus the 160.29 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1541 compared to last Friday's $1.1519.
Asia
Asian markets declined on Monday as a sell-off in tech shares gathered momentum following Broadcom's disappointing AI outlook. Markets were also spooked by higher bond yields and interest rate worries after U.S. jobs data for May blew past expectations.
The dollar scaled a two-month peak, while gold fell towards $4,300 an ounce as traders ramped up bets on a Federal Reserve rate hike this year.
Brent crude futures jumped more than 4 percent above $97 a barrel, rebounding from a two-session decline after Iran and Israel exchanged missile strikes, casting doubt on the future of a fragile ceasefire in the Middle East.
China's Shanghai Composite Index tumbled 1.7 percent to 3,959.34 and Hong Kong's Hang Seng Index ended down 1.2 percent at 24,657.06 on concerns about tech valuations.
Japanese markets slumped after a plunge in U.S. stocks last week. Investors also reacted to weak data that showed the Japanese economy grew slower than initially estimated in the January-March quarter.
The Nikkei 225 Index plunged 3.9 percent to 64,024.60, extending losses for a third day running. The broader Topix Index settled 2.5 percent lower at 3,852.38.
Sumco lost 12.8 percent on valuation concerns, while SoftBank, Advantest and Tokyo Electron plummeted 6-7 percent.
Seoul stocks nosedived as foreign selling intensified amid AI-bubble fears and a warning from authorities against excessive forex volatility. The Kospi Index plummeted 8.3 percent to 7,484.41 despite trading restrictions kicking in shortly after the market open.
Samsung Electronics lost 10.2 percent and SK Hynix gave up 7.7 percent on fears that the artificial intelligence rally had gone too far.
Australian markets ended notably lower, with mining and gold stocks leading losses. The benchmark S&P/ASX 200 Index dropped 0.7 percent to 8,625.10, while the broader All Ordinaries Index closed 0.7 percent lower at 8,855.90.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index slumped 0.9 percent to 13,038.24, hitting a two-week low.
Europe
European stocks traded lower on Monday as geopolitical tensions persist, and robust U.S. jobs data led traders to ramp up bets on a Federal Reserve rate hike this year.
Brent crude futures jumped nearly 5 percent above $97 a barre and Eurozone government bond yields scaled multi-week highs as Israel and Iran exchanged missile strikes, threatening hopes for a deal to end the Middle East war.
In economic news, German factory orders logged a monthly decrease of 3.8 percent in April, in contrast to the 4.5 percent increase in March, Destatis reported. Economists had forecast a fall of 2.2 percent.
On a yearly basis, orders grew 1.6 percent but slower than the 6.1 percent growth posted in March.
Separate data showed Eurozone's Sentix investor confidence improved to -13.4 in June from -16.4 in May.
The German DAX Index is down by 0.4 percent and the French CAC 40 Index is down by 0.2 percent, although the U.K.'s FTSE 100 Index has bucked the downtrend and inched up by 0.1 percent.
Casino Group shares jumped nearly 6 percent. The French food and retail company has signed a new partnership agreement with the Zouari Family to speed up the expansion of its Franprix and Monoprix brands.
Bouygues shares fell over 1 percent while Orange rallied 2 percent. The companies alongside Free-iliad announced the signing of a pact with Altice France for the acquisition of SFR1.
Airbus fell 2.4 percent. The aerospace and defense major has been informing some customers of delays on A320neo series jets, which are due to be delivered in 2027 and 2028, Bloomberg News reported Sunday, citing people familiar with the matter.
German wind turbine manufacturer Nordex Group advanced 1.5 percent after securing new orders totaling 255MW in the first two months of the second quarter.
U.S. Economic News
No major U.S. economic data is scheduled to be released today.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.