US stock market today: Nasdaq, S&P 500 gain as AI optimism offsets Middle East worries

US stock futures indicated another record-breaking start to Monday’s trade, despite a rebound in oil prices as a peace deal between the US and Iran remained elusive.

Dow Jones Industrial Average futures jumped 0.4% on 1 June, while Nasdaq 100 contracts and S&P 500 futures each moved up 0.2%. In the previous session, all three benchmark indices had scaled fresh record highs.

According to analysts at Vested Finance, global markets have started June on a strong note, extending the momentum seen in May as optimism around artificial intelligence continued to overpower concerns around geopolitical tensions and rising oil prices. US stock futures traded higher on Monday, putting the S&P 500 on track for another record high after a blockbuster month driven largely by AI-led enthusiasm.

May turned out to be a remarkable month for global equities, with the Nasdaq surging more than 8% and the S&P 500 advancing roughly 5%, while the benchmark index recorded 11 all-time closing highs as enthusiasm around AI spending continued to strengthen.

It further observed that markets appear increasingly comfortable with the current geopolitical situation. US President Donald Trump reiterated his intention to reopen the Strait of Hormuz and suggested that a broader agreement remains possible.

Investors are increasingly betting that both sides have strong incentives to avoid a major escalation, thereby limiting the broader market impact of recent tensions.

Investor focus has now shifted toward macroeconomic data, with Friday’s US jobs report emerging as the key event for markets this week. Investors will closely monitor the labour market data for signals on whether economic growth remains resilient enough to avoid forcing the US Federal Reserve to keep interest rates elevated for a prolonged period.

For now, however, Vested Finance believes the broader market narrative remains unchanged, with AI continuing to drive earnings expectations higher, geopolitical risks gradually fading from headlines, and investors showing limited willingness to move away from risk assets.

Crude prices rebound

Oil was set to snap a three-day run of losses. Brent crude futures rose 4% to nearly $94.65 a barrel as it remained unclear whether the US and Iran were progressing on a deal for a lasting ceasefire and to resume flows through the Strait of Hormuz.

US stocks in focus today

Vested Finance noted that Nvidia Corporation once again remained at the centre of the rally. The AI chipmaker gained nearly 2% in premarket trading after unveiling a new processor for personal computers, marking its latest expansion beyond data centres. The announcement lifted shares of Dell Technologies and HP Inc., while Intel Corporation declined sharply amid concerns over its competitiveness in next-generation computing.

The brokerage highlighted that software stocks also emerged as a key surprise outperformer. Microsoft Corporation climbed nearly 4% after Nvidia CEO Jensen Huang pushed back against fears that AI could negatively impact software companies.

Investors instead interpreted his remarks as a signal that AI-related spending remains robust across the broader technology ecosystem, further widening the AI-driven rally beyond semiconductor companies.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.