S&P 500 futures were down roughly 0.3% and Nasdaq 100 futures were down about 0.6% early Monday, while Dow futures were also slightly lower. Higher crude prices and renewed weakness in semiconductor shares are weighing on sentiment ahead of a busy week featuring June CPI, retail sales and the start of second-quarter earnings season.
U.S. equities finished higher on Friday, with the S&P 500 gaining 0.42%, the Nasdaq rising 0.29%, the Dow advancing 0.29% and the Russell 2000 adding 0.49%. The S&P 500 closed within one-half percent of its record high as investors rotated back into technology and cyclical sectors. Month-to-date performance now stands at Dow +0.61%, S&P 500 +1.01%, Nasdaq +0.26% and Russell 2000 -1.54%.
The cross-asset backdrop was relatively stable. Treasury yields moved modestly higher, with the 2-year Treasury yield rising 3 basis points to 4.21%, the 10-year Treasury yield increasing 1 basis point to 4.56%, and the 30-year Treasury yield unchanged at 5.06%. The U.S. Dollar Index edged up to 100.97, while the euro slipped to 1.1418, sterling eased to 1.3401, and the dollar weakened modestly against the yen. WTI crude declined 0.78% to $71.52 on Friday, though prices rebounded over the weekend following renewed Middle East tensions. Gold fell 0.48% to $4,121.10 as higher yields offset some of the metal’s safe-haven demand.
This week’s focus quickly shifts to inflation and earnings. June CPI will be released Tuesday, followed by PPI on Wednesday and retail sales on Thursday. Earnings season also begins in earnest with reports from the major banks, including JPMorgan (JPM), Goldman Sachs (GS), Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC). Consensus expectations call for approximately 24% year-over-year earnings growth for the S&P 500 during the second quarter, setting a relatively high bar for corporate results.
Sector Highlights
Sector leadership broadened during Friday’s session. Materials (+1.12%), Communication Services (+0.92%), Consumer Staples (+0.85%), Utilities (+0.61%), Energy (+0.61%), Information Technology (+0.59%), Real Estate (+0.50%) and Industrials (+0.45%) all finished higher. The only sector to post a decline was Health Care (-0.81%), while Consumer Discretionary (+0.05%) and Financials (+0.30%) lagged the broader market. Market internals were constructive overall, with NYSE breadth positive at 1.41:1, although Nasdaq breadth was slightly negative at 1.09:1, reflecting continued selectivity within large-cap technology. Exchange volume totaled 9.84 billion shares on the NYSE and 14.70 billion shares on the Nasdaq, excluding regional exchanges.
Information Technology
- Micron (MU), Intel (INTC) and Marvell Technology (MRVL) traded lower in premarket trading following renewed weakness in Korean semiconductor stocks and continued profit-taking across AI memory names.
- SK Hynix ADRs were under pressure after Friday’s strong U.S. debut as investors locked in gains.
- Meta Platforms (META) remained in focus after announcing plans to begin production of its internally developed AI accelerator later this year.
Financials
- JPMorgan (JPM), Goldman Sachs (GS), Citigroup (C), Bank of America (BAC) and Wells Fargo (WFC) begin reporting second-quarter earnings this week. Investors will focus on loan growth, trading revenue, credit quality and management commentary on the economic outlook.
Energy
- Exxon Mobil (XOM), Chevron (CVX) and ConocoPhillips (COP) are expected to benefit from the weekend rebound in crude prices following renewed geopolitical tensions in the Middle East.
Health Care
- Johnson & Johnson (JNJ) reports this week and will provide an important update on pharmaceutical demand and medical-device trends.
- Moderna (MRNA) remains under pressure following last week’s sharp decline.
Industrials
- Delta Air Lines (DAL) remains in focus after last week’s earnings as investors continue to evaluate travel demand and the impact of higher fuel costs.
- United Airlines (UAL) and American Airlines (AAL) may remain sensitive to further moves in crude oil.
Consumer Discretionary
- Higher gasoline prices remain a potential headwind for consumer spending and travel-related companies ahead of Thursday’s retail sales report.
Consumer Staples
- Defensive consumer names outperformed Friday as investors rotated toward more stable earnings streams, although recent management commentary across the sector continues to point to cautious consumer spending.
