Stock Market Update

Equity futures point to a flattish opening following the sixth consecutive higher weekly finish for the S&P 500 and Nasdaq Composite. Strong earnings and a seemingly relentless demand for AI compute have powered the indices to fresh record highs in recent weeks, with the market largely overlooking hostilities between the U.S. and Iran.

Momentum around earnings growth could take a backseat this week as there is a considerable drop in the number of companies set to report, with only 11 S&P 500 components on the calendar. Still, the market is attempting to look past volatility on the geopolitical front, with futures trading near fair value despite a bump in oil prices this morning.

President Trump said via Truth Social that Iran's latest peace proposal is "totally unacceptable", though the ceasefire continues to hold as both sides continue to jockey for position.

Bloomberg reports that 40 countries will meet today to discuss a mission to escort ships through the Strait of Hormuz, which comes ahead of President Trump's summit with Chinese President Xi later this week.

On the data front, the market will receive the April Existing Home Sales report (Briefing.com consensus 4.05 million) at 10:00 a.m. ET, the only data release on the calendar.

In corporate news:

• Apollo Global Management (APO 133.27, +0.06, +0.0%) is in discussions to sell MidCap Financial Investment Corporation (MIFC 11.47, -0.24, -2.1%), according to The Wall Street Journal.
• Cerebras (CBRS) increases its IPO range to $150-$160 per share, according to Reuters.
• Circle Internet Group (CRCL 116.85, +3.18, +2.8%) beat EPS expectations by $0.02 and missed revenue estimates. The company also announced the launch of Circle Agent Stack, a new set of services and tools designed for the agentic economy.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mixed note with South Korea's Kospi (+4.3%) powering to a fresh record while Japan's Nikkei (-0.5%) set a fresh record before turning lower. Preparations are underway for President Trump's visit to Beijing later this week. Japan's Nikkei: -0.5%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: +1.1%, India's Sensex: -1.7%, South Korea's Kospi: +4.3%, Australia's ASX All Ordinaries: -0.4%.

In news:

• Treasury Secretary Bessent will visit Japan and South Korea over the next couple days ahead of President Trump's trip to China.
• China reported a solid trade surplus for April, but the report also showed a sharp drop in crude oil imports.
• South Korea's exports through the first ten days of May were up 43.7% yr/yr with chip exports spiking 149.8%.

In economic data:

• China's April trade surplus $84.80 bln (expected surplus of $83.10 bln; last surplus of $51.13 bln). April Imports 25.3% yr/yr (expected 15.2%; last 27.8%) and Exports 14.1% yr/yr (expected 7.9%; last 2.5%). April CPI 0.3% m/m (expected -0.1%; last -0.7%); 1.2% yr/yr (expected 0.9%; last 1.0%). April PPI 2.8% yr/yr (expected 1.7%; last 0.5%)
• Australia's March Building Approvals -10.5% m/m, as expected (last 31.0%); 9.0% yr/yr, as expected (last 16.1%). March Private House Approvals 0.9% m/m, as expected (last 2.0%)

Major European indices trade on a mostly lower note while Italy's MIB (+0.2%) outperforms. STOXX Europe 600: -0.3%, Germany's DAX: -0.3%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -1.2%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: -0.5%.

In news:

• Defiant British Prime Minister Starmer, who is arguably the least popular prime minister in the U.K.'s history, has refused to resign despite his party being trounced in local elections last week.
• European Central Bank Vice President de Guindos said that rates should be managed prudently as growth weakens while policymaker Kocher said that the risk of a stagflationary trend can't be ruled out.

There is no economic data of note.