S&P 500, Dow, Nasdaq Futures Edge Lower As Tech Selloff Overshadows Iran Deal Hopes: D, NEE, DUOT, NKE, TE, Stocks In Focus

• Technology stocks declined sharply on Monday, led by key memory chip names. 
• The S&P 500 futures, Dow Jones futures, and Nasdaq 100 futures declined in the overnight session. 
• While crude oil futures declined amid the President's remarks, they remained above $100 a barrel.

U.S. stock futures were trading lower in Monday’s overnight session as a massive selloff in technology stocks eclipsed hopes for a U.S.-Iran deal after President Donald Trump said he would “hold off” on a planned military attack on Iran.

The S&P 500 futures were down 0.31%, Dow Jones futures fell 0.22% and Nasdaq 100 futures declined 0.55% as of 12.20 a.m ET. While crude oil futures declined amid the President's remarks, they remained above $100 a barrel.

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), Invesco QQQ Trust (QQQ), and the SPDR Dow Jones Industrial Average ETF Trust (DIA) edged lower. Retail sentiment was ‘extremely bullish’ for SPY and QQQ on Stocktwits, while it was in the ‘neutral’ territory for DIA at the time of writing.

How Did US Markets Fare?

On Monday, the S&P 500 and Nasdaq Composite closed down 0.07% and 0.51% lower, respectively, while the Dow Jones index was up 0.32% at close.

US Market Drivers

Markets are once again looking to the Middle East, with hopes for a peace deal between the U.S. and Iran reignited after Trump said in a post on Truth Social that he had paused a planned strike on Iran amid “serious negotiations.”

“I have been asked by the Emir of Qatar, Tamim bin Hamad Al Thani, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place, and that, in their opinion, as Great Leaders and Allies, a Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond,” he said.

Trump reiterated that the deal would include “NO NUCLEAR WEAPONS FOR IRAN” and that the U.S. Military would stand by for “a full, large scale assault of Iran, on a moment’s notice,” if an acceptable deal was not reached.

Meanwhile, technology stocks declined sharply on Monday, led by key memory chip names. Seagate Technology shares fell nearly 7% after CEO Dave Mosley said at a JPMorgan conference that building new factories “would just take too long,” further adding to broader supply-chain concerns that were already under pressure. Other stocks, including Micron, SanDisk, Western Digital, and other AI-adjacent stocks also declined.

On the economic front, markets will be looking out for April’s pending home sales reading on Tuesday, and the minutes of the Federal Reserve’s May FOMC meeting, scheduled for release on Wednesday.

Trending Stocks To Watch

Dominion Energy (D): Shares of the energy company shot onto the retail radar after an announcement that NextEra Energy (NEE) would acquire the company in an all-stock deal worth nearly $67 billion. D stock closed up nearly 10% higher on Monday and continued to climb in the overnight session.

NextEra Energy (NEE): The Florida-based company also garnered attention amid the deal, which will create one of the world's largest electric utility companies. The stock, however, closed more than 4% lower, although it was edging higher in after-market hours.

Duos Technologies Group Inc. (DUOT): The small-cap tech company fell more than 5% on Monday after its first-quarter results missed Wall Street expectations.

Nike Inc. (NKE): The shoe retailer jumped onto the retail radar after the company’s shares slid to a 52-week low on Monday. Nike stock has declined more than 32% this year amid pressured growth in China and shrinking profit margins.

T1 Energy Inc. (TE): The solar and battery manufacturer’s shares surged more than 23% on Monday and continued to climb higher in the overnight session after hedge fund Situational Awareness LP reported a new stake in the company.

Broader Market Trends

Oil futures declined in the overnight session heading into Tuesday. Brent crude futures expiring in July were down about 2.03%, trading at around $109.82 a barrel, while WTI crude futures expiring in June were 1.22% lower, at $107.44 a barrel at the time of writing.

Meanwhile, treasury yields on the benchmark 10-year were at 4.603%.

Asian markets were trading mixed on Tuesday, with the KOSPI, and Nikkei 225 down at the time of writing, while the SSE Composite and Hang Seng indexes were climbing. Australian stocks were also trading higher.

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