Happy Monday! Over the weekend, I found myself in an overnight trail race in Vermont. It’s funny how even when you’re not out there doing something adventurous, the feeling of inflation manages to reach us all, doesn’t it?
This morning, stock futures are trending downward, despite a positive week for the S&P 500.
So, what should investors keep in mind as they gear up for trading today? Here are five key points:
1. U.S.-Iran Tensions
A weekend airstrike by the U.S. has shaken markets, with U.S. Central Command confirming that they targeted multiple sites to limit Iran’s aggressive actions toward international shipping in the Strait of Hormuz.
Here’s a breakdown:
- The conflict over this vital shipping route has intensified, as seen in the recent lack of agreement from the U.S.-Iran deal that was reached last month.
- Iran’s Islamic Revolutionary Guard Corps declared the strait closed “until further notice,” but the U.S. military refuted this. President Trump said the strait remains accessible in an interview aired yesterday.
- As tensions have escalated, oil prices have surged this week.
- The S&P 500 and Nasdaq Composite both enjoyed their fourth week of gains in the last five, while the Dow Jones Industrial Average ended its longest stretch of positive weeks since 2024.
- Stay tuned for live market updates as the situation evolves.
2. Lindsey Graham Passing
Senator Lindsey Graham of South Carolina passed away on Saturday at the age of 71 due to a “short-term sudden illness,” as stated by his office. Unexpectedly, Graham’s health declined after he returned from Ukraine.
The cause of death was linked to aortic dissection from atherosclerotic cardiovascular complications. His loss could significantly impact Republican strategies in Congress, especially given his history of bipartisan collaboration. Potential successors for his seat include Representative Nancy Mace and South Carolina Governor Henry McMaster.
3. Legal Actions between Apple and OpenAI
In a surprising twist, Apple has filed a lawsuit against OpenAI, accusing the company of stealing trade secrets while developing its own hardware. This is quite the shift considering they had started a partnership back in 2024.
It seems that since OpenAI’s decision to dive into hardware, things have soured between the two tech giants. Elon Musk has also reignited his feud with OpenAI’s CEO, Sam Altman, calling him a “fraud Altman” in a recent post. Altman, for his part, joked about Musk getting “hooked again” by the release of OpenAI’s latest AI model.
4. Job Market Insights
Last year, Amazon went through the largest layoffs in its history. For many employees, transitioning out of the company is proving to be quite difficult, particularly with tech layoffs reaching alarming levels.
The highest number of industry layoffs since 2024 occurred in May, driven largely by AI-related changes. Dorian Smith, one former Amazon employee, reflected on how after the layoffs, the uniqueness of having Amazon on his resume felt pretty diminished with so many others in the same boat.
5. Housing Legislation
A new bipartisan housing bill was passed into law on Saturday, despite President Trump deciding against signing it. He did not veto it, allowing it to become law automatically.
The 21st Century ROAD to Housing Act aims to address supply and affordability issues in housing. Experts caution, though, that home prices might not see a drop anytime soon.
What to Watch This Week
There are quite a few things to keep an eye on as the week unfolds:
