Dow Jones set to extend gains as Trump says 'relax' on Iran deal

• The Dow gained 3.1% in May to reach 51,032, while the S&P 500 rose 4.8% to 7,580 and the Nasdaq climbed 7.4% to 26,973, with year-to-date gains of 6%, 11%, and 16% respectively
• WTI crude jumped 3.6% to $90.47 per barrel after U.S. strikes on Iranian sites and failed weekend negotiations, though Trump expressed optimism that 'Iran really wants to make a deal'
• Market breadth has broadened considerably with the Russell 2000 up 17.6% year-to-date and Dow Transports leading at 23%, while the 'Magnificent 7' tech stocks lag at just 7.7%, indicating healthier market participation

Market Summary: Dow Jones Set to Extend Gains Amid Iran Tensions

Market Performance:

US futures opened higher on June 1, 2026, with Dow Jones futures up 0.5%, S&P 500 up 0.3%, and Nasdaq up 0.2%. The Dow reached a record 51,032 (up 363 points or 0.7%), while the S&P 500 hit 7,580 (+0.2%) and Nasdaq achieved 26,973 (+0.2%). May proved strong: Dow gained 3.1%, S&P 500 rose 4.8%, and Nasdaq climbed 7.4%. Year-to-date, indices are up 6%, 11%, and 16% respectively.

Key Developments:

President Trump urged markets to "relax" on Iran negotiations, posting on social media that "Iran really wants to make a deal" and it will "all work out well." However, geopolitical tensions remain elevated following US strikes on Iranian radar and drone command sites over the weekend. WTI crude futures jumped 3.6% to $90.47 per barrel as Kuwait reported intercepting missile and drone attacks.

Market Breadth:

A significant shift is occurring as small-cap Russell 2000 gained 17.6% YTD and Dow Transports leads with 23%, while the Magnificent 7 tech stocks posted only 7.7%. This indicates broader market participation compared to the tech-dominated rallies of 2023-2024.

Catalysts:

Nvidia launched a new superchip over the weekend, boosting tech sentiment. Key economic data approaches, including Friday's non-farm payrolls report. Markets price in a 50% chance of a Federal Reserve rate hike before year-end.

Upcoming Earnings:

Major companies reporting this week include Hewlett Packard Enterprise, Palo Alto Networks, Dollar General, Broadcom, CrowdStrike, Lululemon Athletica, and Brown Forman.