Dow Jones futures fell modestly Monday morning, along with S&P 500 futures and Nasdaq futures, with new Trump tariffs and heightened U.S.-China tensions in focus.
The stock market rally rose last week amid shifting Trump tariff news, with the Dow Jones and Nasdaq hitting resistance. Nvidia broke out on earnings but fell back Friday.
Palantir Technologies moved into a buy zone on Friday. Tesla stock moved above an early entry last week but gave that up Friday. Tesla China EV rivals reported May sales Sunday with a new price war underway.
Nvidia rival Broadcom and cybersecurity plays CrowdStrike and Rubrik headline earnings this coming week, with the May jobs report due Friday. Broadcom stock and CrowdStrike are in buy range.
On Saturday night, President Donald Trump pulled the nomination of Jared Isaacman, a close ally of Tesla and SpaceX CEO Elon Musk, to be NASA administrator.
Dow Jones Futures Today
Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures declined 0.4% and Nasdaq 100 futures lost 0.5%.
The 10-year Treasury yield edged up to 4.43%.
Crude oil surged more than 4%. OPEC+ agreed to boost production for a third straight month on Saturday, but investors focused on Ukraine's big attack on Russian air bases.
President Trump said late Friday he would double steel and aluminum tariffs. China on Monday accused the U.S. of breaking their trade truce.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Trump Tariff, U.S-China News
Late Friday, Trump said he would double his tariff on imported steel and aluminum to 50% on June 4, significantly raising costs for other U.S. manufacturing and construction firms.
Early Friday, President Trump said on Truth Social that Beijing had "totally violated" the U.S.-China trade truce. He didn't provide specifics, but China's slow approvals for rare earth exports is the main issue, the Wall Street Journal reported. On May 12, the U.S. and China agreed to slash tariffs for 90 days.
Early Monday, China denied Trump's claims and instead said that the U.S. hadn't lived up to its side of the bargain, citing stepped-up chip-technology curbs and saying it'll revoke visas for Chinese students.
Trump has often staked out extreme threats or tariffs only to pause or reduce in some way, such as his May 27 decision to push back 50% tariffs on European Union goods. But he may not want to back off after widespread discussion of the so-called TACO trade.
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Stock Market Rally
The stock market rally had strong weekly gains, closing off highs but also off lows amid shifting Trump tariff headlines. Despite some notable intraday swings, the indexes closed tightly during the week.
The Dow Jones Industrial Average rose 1.6% in last week's stock market trading. The S&P 500 index gained 1.9%. The Nasdaq composite popped 2%. The small-cap Russell 2000 advanced 1.3%.
For the month of May, the Dow Jones rose 3.9%, the S&P 500 leaped 6.15%, the Nasdaq surged 9.6% and the Russell ran 5.2% higher.
The Dow Jones is still below the 200-day line. The Nasdaq, after a brief push Thursday morning, is pausing around recent short-term highs, but not far from all-time levels.
The 10-year Treasury yield fell nine basis points to 4.41%. U.S. crude oil futures fell 1.2% to $60.79 a barrel last week.
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ETFs
Among growth ETFs, the Innovator IBD 50 ETF rose 1.5% last week. The iShares Expanded Tech-Software Sector ETF advanced 1.7%, with Palantir, CrowdStrike and Rubrik stock all IGV holdings. The VanEck Vectors Semiconductor ETF finished up 1%, with Nvidia and Broadcom stock major holdings.
ARK Innovation ETF edged up 0.4% last week. Tesla stock is the No. 1 holding across ARK Invest's ETFs. Cathie Wood's ARK also has a big stake in Palantir stock.
The Health Care Select Sector SPDR Fund rallied 1.8%. The Industrial Select Sector SPDR Fund rose 1.4%. The Financial Select SPDR ETF settled 1.7% higher.
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Palantir Stock
Palantir stock jumped 7.7% to 131.78 on Friday in heavy volume. Shares are back above a 125.25 cup-with-handle buy point after pausing around that entry for several sessions.
The New York Times reported Friday that the Trump administration will tap the data analytics firm to help the federal government share data across agencies.
Nvidia Stock
Nvidia stock rose 2.9% to 135.13. But after hitting 143.49 Thursday morning, shares ended the week below the 137.40 handle buy point. Nvidia earnings beat views, though Q2 revenue guidance was a touch light due to tougher AI chip export curbs. CEO Jensen Huang expressed confidence about AI momentum.
Trump's China comments and reports of a wider tech crackdown raised concerns about further Nvidia AI chip bans.
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Tesla Stock
Tesla stock cleared a 354.99 early entry on Tuesday, but fell back 3.3% on Friday. Shares still rose 2.1% to 346.46 for the week.
A limited robotaxi launch will take place in June, reportedly on June 12. Meanwhile, CEO Elon Musk left the White House on Friday, with President Donald Trump publicly praising him.
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Broadcom, CrowdStrike, Rubrik Earnings
Broadcom earnings are late Thursday. Shares jumped 5.8% to 242.07 in the past week, clearing and holding the 235.28 handle buy point.
CrowdStrike earnings are Tuesday night. CRWD stock rose 3.5% to 471.37 last week, hitting a record high and still within the buy zone from a 451.15 entry.
Rubrik earnings are due after Thursday's stock market close. RBRK stock gained 3.25% to 95.35, hitting a new high and greatly extended from any entry.
What To Do Now
The stock market rally had a strong May while the somewhat-messy recent action is letting leaders set up. Some stocks, such as CrowdStrike, Palantir and Broadcom, have already pushed higher. Others could try again, such as Tesla and Nvidia.
Investors can still consider new buys to add a little more exposure or to offset some sells. But largely standing pat until the market breaks decisively higher makes a lot of sense.
Have your watchlists ready.
Tesla, Broadcom, CrowdStrike and Rubrik stock are all on IBD Leaderboard. Palantir stock, CrowdStrike and Rubrik are on the IBD 50. Palantir, Broadcom and CrowdStrike stock are on the IBD Big Cap 20. Nvidia stock and Palantir are on IBD Sector Leaders.
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