Stock Futures Dip After Rally Driven by U.S.-Iran Deal and SpaceX Surge

U.S. stock futures retreated overnight on Monday after a record-setting rally driven by optimism surrounding the U.S.-Iran peace deal and SpaceX’s continued surge. The Dow index hit a new all-time intraday high, while the Nasdaq achieved its best close since late March. Investors were buoyed by the U.S.-Iran agreement, which aims to end hostilities in the Middle East and reopen the Strait of Hormuz, easing concerns over global energy supplies. Oil prices declined as a result, reducing inflation fears and pushing investors toward riskier assets like technology stocks.

SpaceX (SPCX) shares extended their post-debut rally, jumping another 20% to close at a market capitalization of $2.52 trillion. Chip stocks also surged, with Nvidia Corp. (NVDA) up 3.54%, Micron Technology (MU) gaining nearly 11%, and Sandisk Corp. (SNDK) rising 6.45%. This week, markets will closely watch the first Federal Reserve meeting under new Chair Kevin Warsh, with expectations that rates will remain steady.

Among individual stocks, Tesla Inc. (TSLA) gained attention amid speculation about a potential future merger with SpaceX. Meanwhile, Dave & Buster's Entertainment (PLAY) shares slumped over 11% after-hours following a decline in its first-quarter profit and revenue. Fiserv, Inc. (FISV) also declined after its CEO abruptly stepped down to join Truist Financial.

Global markets showed mixed reactions, with Asian markets trading in different directions at the open on Tuesday. Oil prices edged higher in overnight trading, while yields on the 10-year Treasury climbed to 4.473%, and gold prices rose to around $4,314.39 an ounce.