U.S. Stock Market prediction for Monday: S&P 500, Dow Jones, Nasdaq investors eye Iran-U.S. war as Wall Street look to end first half of year in high note

U. S Stock Market indexes S&P 500, Dow Jones, Nasdaq futures were up little as the Wall Street investors on Monday will be eyeing development on the Iran-U.S. war front. S&P 500 futures were up by 0.46 per cent, Dow Jones futures jumped 0.31 per cent, Nasdaq futures rose 0.29 per cent.

Oil prices rose on Monday following days of tit-for-tat strikes by the United States and Iran in the Middle East that underscored the fragility of their interim peace deal ‌and again ⁠slowed energy ⁠shipping in the Strait of Hormuz.

Brent crude futures climbed 52 cents, or 0.672 per cent, to $72.51 a barrel while U.S. West Texas Intermediate crude was at $69.94 a barrel, up 71 cents, or 1.03 per cent. Brent crude fell 10.6 per cent last week, its third weekly decline, after crude shipments through the strait rose last week to their highest level since the U.S.-Israeli conflict with Iran began in February.


However, traffic has since slowed following renewed attacks on ⁠ships in ‌the strait from Thursday, including a Qatar-linked oil tanker, that triggered ​strikes from the ​U.S. and Iran in the worst escalation since they signed an ⁠interim peace deal.

Major U.S. equity indexes this week are set to close out a solid first half of the year, with the benchmark S&P 500 up more than 7 per cent so far in 2026. But equities have had a rougher time in June. High-flying shares of ‌semiconductor companies have seen huge ⁠moves this ⁠week as investors calibrate their optimism over AI-driven profits.

A Federal Reserve meeting this month revealed policymakers were laser-focused on containing inflation. Investors said the monthly jobs report due on Thursday could increase bets on ​rate hikes if it indicates a hot economy. U.S. financial markets will be closed on Friday for the Independence Day holiday.

The Philadelphia SE Semiconductor Index has soared ⁠85 per cent since the ‌market's late-March low for the year, but has pulled back this week as investors assess if the trade is overheated. Blowout results ​from memory chipmaker Micron ​Technology late on Wednesday gave support to the group, but the tech-heavy Nasdaq Composite fell more than 4 per cent on the ⁠week.

Short-dated U.S. Treasury yields fell on Friday, tracking lower oil prices, after crude shipments through the Strait of Hormuz rose to their highest level since the U.S.-Israeli war with Iran began, fueling hopes that the worst of the recent inflation shock may be passing. The yield on benchmark U.S. 10-year notes fell 2.15 basis points to 4.371 per cent.