Dow Futures associated with the primary U.S. indices indicate an upward trend, despite an exchange of strikes between the U.S. and Iran casting a shadow over the prospects for diplomatic efforts aimed at resolving the conflict. Oil prices are on the rise, remaining above pre-war levels yet still below the recent highs exceeding $100. Investors are closely monitoring the potential for an agreement that could facilitate access through the Strait of Hormuz. U.S. media have reported that Trump has requested certain modifications to the agreement. Nvidia has introduced the inaugural Windows computers that utilise its premium chips as the primary processing unit.

Dow market futures ticked higher on Monday, indicating a continuation of the gains achieved at the end of the previous trading week, despite new strikes in the Middle East unsettling expectations for a timely ceasefire extension agreement between the U.S. and Iran. By 03:23, the Dow futures contract had increased by 54 points, representing a 0.1% rise, while S&P 500 futures had gained 20 points, equating to a 0.3% increase, and Nasdaq 100 futures had progressed by 135 points, reflecting a 0.4% advance. The primary indices on Wall Street experienced gains in the previous session, achieving new record closing highs alongside an increase for both the month and the week. Results from Dell contributed to the rally on Friday, as investors responded positively to the company’s decision to raise its annual profit and revenue forecasts. Chipmaking stocks, in particular, propelled a surge in the broader technology sector. Recent optimism regarding a potential agreement between the U.S. and Iran has alleviated concerns that a conflict-driven energy crisis could lead to a phase of stagnant growth accompanied by ongoing inflation, according to analysts. These hopes enhanced the attractiveness of risk assets in May and facilitated a rebound in government bonds following a significant sell-off in the middle of the month, they noted.

Nevertheless, a consistent pattern observed in the Iran conflict indicates that the likelihood of a forthcoming agreement has been dampened by yet another series of military strikes. The U.S. military has confirmed that it targeted radar and drone control installations in Iran, in response to Tehran’s action of downing an American drone over the weekend, according to the reports. Iran confirmed that it has executed an additional strike in retaliation, while Kuwait reported the interception of drone and missile fire, according to the AP. In a broader context, Israel has sought to extend its occupation over a portion of adjacent Lebanon, reacting to drone activities initiated by Hezbollah militants aligned with Iran. U.S. President Donald Trump has emphasised his belief that Iran is inclined to reach an agreement, as negotiations persist between both parties over critical issues, notably Tehran’s nuclear aspirations. Trump is currently evaluating a proposed memorandum of understanding that is said to extend an existing ceasefire, initiate the resumption of shipping in the Strait of Hormuz, and provide a structure for dialogue regarding Iran’s nuclear program. Iran’s chief negotiator indicated on Sunday that Tehran would reject any agreement that fails to safeguard its rights.

Against the backdrop, Brent crude futures, the global oil benchmark, advanced once again. At 03:56, the contract experienced an increase of 3.1%, reaching a price of $93.92 per barrel. Although the prospective extension of the U.S.-Iran ceasefire has influenced oil prices, the Brent contract continues to trade significantly above levels seen prior to the conflict. Analysts have indicated that this reflects the prevailing belief that, even if a deal is achieved, shipping activity in the Strait of Hormuz is unlikely to rebound for several months, while Iran’s control over this critical conduit will continue to impose a geopolitical risk premium in oil markets. Oil prices have captured the attention of investors since the onset of the Iran war in late February. The effective closure of the Strait of Hormuz, a crucial conduit for a significant portion of global oil and natural gas, has led to an increase in energy prices, raising concerns about potential inflationary pressures affecting nations worldwide. Expectations have, in turn, increased that central banks might respond to the inflation surge by elevating interest rates, which could diminish some of the attractiveness of perceived riskier assets like stocks.

The ramifications of the Iran conflict have been casting a shadow over economic indicators for several weeks, as investors prepare for a potential surge in inflation alongside a possible deceleration in overall growth. On Monday, market participants will have the chance to analyse a measure of performance in the crucial U.S. manufacturing sector provided by the Institute for Supply Management. The ISM manufacturing purchasing managers’ index is projected to register at 53.3 in May, an increase from the 52.7 recorded in the previous month. A level above 50 signifies expansion. Economists anticipate that a metric of prices paid by these businesses, which could provide insight into the state of inflation, will rise to 85.3 from 84.6 in April.

Nvidia has announced a new processor for Microsoft’s Windows operating platform, which will be utilised in a range of laptops and desktop PCs. CEO Jensen Huang unveiled the new line of “superchips” — the RTX Spark — during a keynote address at the COMPUTEX conference in Taiwan on Monday. The RTX Spark will feature Nvidia’s new N1X processor, a custom chip developed in collaboration with Microsoft and designed by the Taiwanese company MediaTek. The processors will be based on the platform developed by chip designer Arm. Huang indicated that the chips were primarily designed for operating locally hosted artificial intelligence agents, noting that Nvidia had partnered with Windows on the software platform.