Nasdaq futures surge 320 points: 5 things to know before Wall Street opens

• Nasdaq-100 futures climbed 1.08%, leading broader market gains as de-escalation talks between the US and Iran reduced geopolitical risks and oil-price concerns
• Apple fell 4.8% last week after raising prices on iPads and MacBooks due to higher memory and chip costs, intensifying debate over the sustainability of AI boom economics
• SpaceX will join the Nasdaq-100 index on July 7, likely triggering buying from index-tracking funds, while this week's June jobs data will test whether markets can sustain the rally amid Fed rate-hike expectations

Market Summary

Key Market Movements:

U.S. futures pointed to a strong open Monday, with Nasdaq-100 futures surging 320 points (+1.08%), S&P 500 futures up 0.74%, and Dow futures rising 205 points (+0.39%). Technology stocks led the advance after a difficult prior week.

Primary Catalyst:

De-escalation of U.S.-Iran tensions boosted risk appetite, reducing concerns about oil supply disruptions through the Strait of Hormuz. Washington and Tehran reportedly agreed to reduce hostilities and restart peace talks, supporting crude price stability and risk assets.

AI Sector Concerns:

Despite the rally, investors remain cautious about AI investment economics. Apple fell 4.8% last week after raising prices on iPads and MacBooks due to higher memory and storage chip costs. The semiconductor sector faced pressure as questions mount over whether AI spending translates to earnings growth, with device makers and consumers bearing increasing costs.

Critical Data Ahead:

June labor market data due this week represents the next major test for markets. Strong payrolls could support Federal Reserve rate hike expectations—traders anticipate at least one increase this year to control inflation—potentially pressuring growth stock valuations. Weaker data may ease rate concerns and extend the equity rebound.

Notable Company News:

SpaceX gained in premarket trading following announcement of its Nasdaq-100 inclusion on July 7. The addition will force index-tracking funds and ETFs to purchase shares, creating mechanical demand. This comes after SpaceX reportedly dropped 32% post-IPO.

Market Outlook:

The relief rally faces headwinds from persistent inflation concerns, elevated AI valuations, and potential Fed tightening, with upcoming jobs data crucial for determining sustainability.