Dow, S&P 500, Nasdaq Futures Slip After Record Rally As US-Iran War Confusion Eclipses AI Gains: TSLA, BB, META, HPE, NVDA Stocks In Focus

• U.S. stock futures declined in extended trading hours on the political updates. 
• On Monday, all three U.S. benchmark indexes closed higher, with the Nasdaq leading the gains, while the Dow Jones and the S&P 500 edged higher. 
• Oil futures edged higher, while Asian markets opened in the red on Tuesday.

U.S. stock futures edged lower in the overnight session on Monday after markets jumped closed at record highs as uncertainty over a peace deal with Iran lingered after clashes between Israel and Lebanon escalated tensions in the Middle East.

The Dow futures fell 0.46%, the S&P 500 futures declined 0.41%, and the Nasdaq 100 futures traded 0.63% lower as of 8.57 p.m ET.  

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), Invesco QQQ Trust (QQQ) and SPDR Dow Jones Industrial Average ETF Trust (DIA) all traded in the red at the time of writing, with retail sentiment in the ‘bullish’ territory for SPY, and in the ‘bearish’ territory for QQQ and DIA.

The iShares 20+ Year Treasury Bond ETF (TLT) was up about 0.02% amid ‘bullish’ sentiment at the time of writing.

How Did US Markets Fare On Monday?

On Monday, all three U.S. benchmark indexes closed higher. The S&P 500 gained for the eighth consecutive session, led by Nvidia, and a broader rally in software stocks buoyed the other indexes higher.

The Nasdaq Composite led the gains, ending the session 0.42% higher, while the Dow Jones was up 0.09% at close. The S&P 500 added nearly 20 points to end 0.26% higher.

US Market Drivers

U.S. stock markets notched fresh records in the first trading day of June, edging higher on a host of war-related headlines as well as a broader uptick in technology shares.

Nvidia Corp. (NVDA) shares rallied more than 6% at close after CEO Jensen Huang unveiled a series of new products, including the company’s first PC processors, and the Vera CPU for data center AI workloads at the Computex and GTC Taipei 2026. Huang also said that the next-generation Vera Rubin AI chips had entered full production.

Software shares also gained after Huang said at the conference that AI would not displace software companies, and instead reiterated that they would stand to gain from the technology’s rapid adoption.  

“I said, (it’s) completely opposite. And you can see it. (AI) agents is the going to create the largest opportunity for my partner companies,” Huang said. ServiceNow Inc. (NOW), Crowdstrike Holdings Inc. (CRWD), and SAP AG (SAP) all ended higher following the comments.

Meanwhile, conflicting accounts from U.S. President Donald Trump and Iran about the ongoing war in the Middle East are currently weighing on investor sentiment.

Trump said on Monday in a post on Truth Social that “Talks are continuing, at a rapid pace, with the Islamic Republic of Iran.” However, other media reports indicate that Iran has hit the brakes on negotiations in response to Israel’s expanding military offensive in Lebanon.

Late Sunday, Israel launched a series of attacks in Beirut. The president said in another Truth Social post on Monday evening that he had asked the Israeli leader “not to go into a major raid of Beirut, Lebanon.” Trump said that Benjamin Netanyahu “turned his Troops around.”

“Thank you Bibi! I also had a conversation with Representatives of the Leaders of Hezbollah, and they agreed to stop shooting at Israel, and its soldiers. Likewise, Israel agreed to stop shooting at them. Let’s see how long that lasts — Hopefully it will be for ETERNITY!” he added.

While Lebanon has announced ​a partial ceasefire between Hezbollah and Israel on Monday, Iran is yet to provide an official update on the peace deal negotiations.

“Expectations for a US-Iran agreement remain fluid,” Jason Pride and Michael Reynolds at Glenmede, a boutique wealth management firm, told Bloomberg. “Recent strikes and conflicting statements from both sides highlight that key details remain unresolved.”

Trending Stocks To Watch

Tesla Inc. (TSLA): Shares of the company declined more than 4% on Monday, slipping further in the overnight session after OpenAI CEO Sam Altman announced the launch of a Robotics division over the weekend. The humanoid robotics sector is a key future growth area for Tesla.

BlackBerry Ltd. (BB): The tech company’s shares surged 8% at close on Monday, edging higher on growing optimism over its software business, particularly the QNX platform, which has garnered attention for its reliability, speed, and safety certifications.

Meta Platforms Inc. (META): The social media company jumped onto the retail radar amid significant selling pressure as investors actively debate the impact of the company’s massive AI infrastructure spending on its profitability.

Hewlett Packard Enterprise Co. (HPE): The company’s stock soared in extended trading hours after it reported second-quarter (Q2) earnings results that beat analysts’ estimates and also provided solid forecasts for the upcoming quarter, highlighting a surge in demand for its AI tools and services.

Alphabet Inc. (GOOG, GOOGL): The company garnered retail attention after it announced plans to raise $80 billion in equity, including through a $10 billion investment by Berkshire Hathaway (BRK.A) to fund its AI compute infrastructure.

Global Market Trends

Oil futures edged higher in the overnight session. Brent crude futures expiring in July were up about 0.13%, trading at around $95.10 a barrel at the time of writing, while WTI crude futures expiring in June were about 0.05% higher, trading around $92.20 a barrel.

Meanwhile, yields on the 10-year Treasury were at 4.457%, while gold prices fell to around $4,481.67 per ounce.

Asian markets were all trading lower on Tuesday. The KOSPI, Nikkei 225 and the SSE Composite index slipped at the open, while Australian stocks were also trading lower.

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