Updated 2 min read
In This Article:
US stocks rebounded sharply on Monday as jitters over a widening in the Israel-Iran hostilities started to retreat amid a report that Tehran is looking to deescalate the conflict.
The Dow Jones Industrial Average (^DJI) rose roughly 1%, while the S&P 500 (^GSPC) moved up 1.1%. The Nasdaq Composite (^IXIC) gained 1.6%. The cautious optimism follows a bruising Friday session that saw the Dow plunge more than 700 points in a broad risk-off move.
When asked about a Wall Street Journal report that Tehran may be willing to restart talks over its nuclear program, Trump said, "Yeah ... they’d like to talk, but they should have done that before.”
The geopolitical flare-up comes at a delicate moment for markets already buffeted by tariff insecurity. Friday’s sell-off dragged the major US indexes into negative territory for the week.
Read more: The latest on Trump's tariffs
Now investors are regaining some appetite for risk amid rising optimism that the conflict won't spill over into a broader regional crisis. Trump said on Sunday there's a "good chance" of an Israel-Iran peace deal, but the hostilities may need to play out first. “Sometimes they have to fight it out, but we’re going to see what happens,” he told reporters.
A measure of calm is also returning to the oil market, rattled by fears of disruption to the global energy supply. After spiking initially, prices pushed down roughly 4% to pull Brent crude (BZ=F) to just under $72 a barrel and WTI crude (CL=F) to below $71 a barrel.
Meanwhile, the 10-year Treasury yield (^TNX) rose to 4.42% while gold (GC=F) futures retreated from a recent rally. Bitcoin (BTC-USD) climbed to hover above $107,000 per token.
On the trade front, US talks with the EU and Canada are taking center stage as Trump attends the G7 summit in Canada. Looming is Trump's July 9 deadline, the date at which his 90-day pause of steep "Liberation Day" hikes expires.
Looking ahead, markets overwhelmingly expect the Fed to hold rates steady on Wednesday. While President Trump has maintained pressure on Chair Jerome Powell to cut rates, current market dynamics may leave little room to budge.
LIVE 17 updates
US Zyn boom pushed Philip Morris stock to a record. Wall Street still sees 'impressive growth' ahead.
Yahoo Finance's Brooke DiPalma reports:
Read more here.
CoreWeave downgraded to Neutral at Bank of America
Bank of America (BAC) analyst Brad Sills downgraded CoreWeave (CRWV) stock to Neutral from his previous Buy rating, citing the AI cloud company's high valuation.
"Following Q1 results, the stock has run up 145%," Sills wrote, adding that he believes "much of the near-term upside has been priced in."
Sills noted that CoreWeave is trading at 27 times its 2027 earnings, more than previously. He also noted CoreWeave's significant debt.
"We forecast $21 billion of negative FCF [free cash flow] through CY27, driven by high capex ($46.1 billion through CY27)," Sills wrote. "Historically, CoreWeave has funded 85% of capex with debt."
"Therefore, it is critical that the company have access to reasonably priced debt," he continued. "In the recent debt raise, the company raised $2 billion of debt at 9.3% interest rate, down from 11% in CY24. However, this remains a small % of the total incremental debt required from here, raising some questions, in our view."
Despite the downgrade, Sills raised his price outlook on the stock to $185 from $76. CoreWeave stock rose 4.6% on Monday.
CoreWeave is an Nvidia-backed (NVDA) firm that holds one of the largest pools of the chipmaker's GPUs. It reported its first quarterly earnings results as a public company in May, featuring soaring revenue and a bullish revenue outlook for the year, on a $4 billion deal with ChatGPT maker OpenAI.
Still, some analysts have questioned what they believe is a risky business model.
Circle stock jumps 18% to hit an all-time high
Circle Internet Group (CRCL) stock jumped as high as 18% on Monday to an intraday high, continuing the stablecoin issuer’s meteoric rise following its blockbuster IPO earlier this month. The stock climbed to $165 before trimming gains, building on Friday’s 25% surge.
Circle has repeatedly appeared on Yahoo Finance’s trending tickers list in recent sessions as investor enthusiasm for stablecoins — digital tokens backed by reserve assets like the US dollar — continues to grow.
Since its highly anticipated debut on June 5 at $31 per share, Circle has soared more than 400%.
Nvidia gains 2.5%, climbs closer to fresh record
Nvidia (NVDA) stock gained more than 2%, moving closer to a fresh record as the overall market rallied.
The AI chip giant traded above $145 per share, just a stone's throw away from its Jan. 6 record close of $149.43.
Stocks move to session highs, oil slips 4% on a report that Iran may want to deescalate conflict
Stocks moved to session highs on Monday after a report that Iran is looking to deescalate the conflict with Israel.
Oil extended a session decline to slide more than 4%, after spiking more than 7% on Friday as Israel and Iran exchanged strikes.
The market moves on Monday came as the Wall Street Journal reported Tehran may be willing to restart talks over its nuclear program, a move intended to limit the conflict.
Roku surges 10% on Amazon Ads partnership
Roku (ROKU) stock surged more than 10% on Monday after the streaming platform announced a partnership with Amazon (AMZN) Ads to create the "largest authenticated Connected TV (CTV) footprint” in the US.
Roku and Amazon said in a joint statement that the deal will allow advertisers access to an estimated 80 million US CTV households — more than 80% of the total— through Amazon’s demand-side platform (DSP).
The companies said early tests of this integration have shown “significant” results.
“Advertisers using this new solution reached 40% more unique viewers with the same budget and reduced how often the same person saw an ad by nearly 30%, enabling advertisers to benefit from three times more value from their ad spend,” said the statement.
Stocks rise, oil dips as Israel-Iran conflict continues
The major averages opened higher on Monday, while oil pulled back as the Israel-Iran conflict entered its fourth day.
The Dow Jones Industrial Average (^DJI) gained about 0.5%, while the S&P 500 (^GSPC) moved up 0.6%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.7%.
Oil (CL=F), which rose sharply on Friday, pulled back as traders assessed the scope of the ongoing conflict between Israel and Iran.
Investors are focusing this week on the Federal Reserve meeting and policy decision. Market participants overwhelmingly expect policymakers to hold interest rates steady on Wednesday.
Michael Saylor's Strategy announces $1 billion bitcoin buy
Strategy (MSTR), the largest corporate holder of bitcoin, reported in a filing to the Securities and Exchange Commission that it purchased $1.05 billion worth of bitcoin between June 9 and June 15.
Strategy, which is chaired by crypto tycoon Michael Saylor, has spent $41.8 billion to purchase 592,000 bitcoins since 2020, holding the cryptocurrency as its primary treasury reserve asset.
Shares of MSTR rose 1.4% in premarket trading. The stock is up roughly 3,000% since the software firm first bought bitcoin on Aug. 10, 2020.
Defense stocks flat after rally, Palantir rises
Northrop Grumman (NOC), RTX (RTX), and Lockheed Martin (LMT) traded roughly flat in premarket Monday after rallying in the prior trading session.
The defense stocks had climbed Friday after Israel launched a series of airstrikes on Iran, raising tensions in the Middle East and heightening fears of a broader regional conflict.
Northrop Grumman stock gained nearly 4%, while Lockheed Martin and RTX shares rose over 3%. The three companies supply weapons to Israel through contracts with the US government.
Palantir (PLTR) rose a more modest 1.6% Friday but was up 2.2% before the market open Monday.
Sarepta stock plummets after second patient dies after receiving treatment
Shares of Sarepta (SRPT) plunged 40% in premarket trading on Monday after the company said a second patient died of liver failure while taking its experimental gene therapy, Elevidys.
Sarepta paused its clinical trial and halted shipments of the treatment to patients who are unable to walk.
News of the death comes after another patient died of acute liver failure in March, which raised concerns over the drug's safety. The therapy is used to treat Duchenne muscular dystrophy, a rare muscle disorder.
Investors (and Trump) are about to find out if Fed still wants rate cuts in 2025
The focus at this week's Federal Reserve meeting is on whether policymakers are still committed to two interest-rate cuts this year, Yahoo Finance's Jennifer Schonberger reports:
Good morning. Here's what's happening today.
Trending tickers: US Steel Corp, Kering and Tesla
Here are some top stocks trending on Yahoo Finance in premarket trading:
United States Steel Corporation (X) stock was up 5% before the bell on Monday after President Trump approved of Japan's Nippon Steel's take over of the company. Trump the gave the green light to the $14.9B bid for US Steel on Friday, removing a key hurdle in Nippon's 18-month pursuit of the business.
Kering's (KER.PA) Paris-listed shares rose 9% in premarket trading on Monday, after reports emerged that Renault's chief executive, Luca de Meo would become head of the French luxury goods group Gucci.
Tesla (TSLA) stock was up 1% on Monday before the bell, rebounding from losses earlier in the Month due to CEO Elon Musk and President Trump's feud.
Renault falls, Kering pops as turnaround leader de Meo switches CEO roles
Renault's (RNO.PA) stock dropped over 6% on news that its CEO Luca de Meo has decided to leave.
The Italian who turned around the French automaker has been recruited by Kering (PPXB.F, PPRUF) to perform a similar feat at the luxury goods maker, according to Bloomberg.
Shares of Kering rose almost 10% in Paris as investors welcomed the report that de Meo will be appointed as the Gucci owner's CEO in coming days.
Bloomberg reports:
Recessionary vibes seen from the advertising industry?
Greetings from Cannes Lions, where I am stationed for the week talking with top advertising execs, sports stars and CEOs. Tough assignment!
I have found this event to be very useful each year in helping to understand the economy into year end. You would be surprised how forward-looking market spend trends are at the world's biggest companies.
To that end, I just got off set with Disney's (DIS) president of global advertising Rita Ferro — one of the top names in the marketing industry. I asked her if a slowing US economy and general macro volatility were beginning to chip away at ad budgets.
She wasn't super bullish about ad spending — more cautiously optimistic. Businesses are buying ads once they see they need them, rather than making large commitments on ad spend early, she suggested.
"I think people are being very intentional where they spend money," Ferro tells me. "I would say they're [the data points she watches] not recessionary. We see much closer in buying."
Gold pushes just shy of record high as geopolitical instability causes haven demand
Gold prices rose as the conflict erupting between Israel and Iran pushed investors toward safe-haven assets in a broader risk-off move.
Bloomberg reports:
Oil spikes before holding gains as Israel-Iran missile strikes stoke production and supply concerns
Oil continues to gain as Israel and Iran enter the fourth consecutive day of missile strikes between the warring nations. Iran is the third largest oil producer in OPEC+ and controls the Strait of Hormuz, an essential supply route for oil worldwide.
Bloomberg reports:
