Stock Market Update

Equity futures point to a higher opening to the holiday-abbreviated week as tech stocks advance in the premarket after a volatile previous week. The S&P 500 lost 2% last week as many of the market's largest components struggled against a backdrop of heightened semiconductor weakness, though the S&P 500 Equal Weighted Index advanced 1.6% as investors rotated into other pockets of the market.

On the geopolitical front, the U.S. and Iran exchanged strikes over the weekend, but have agreed to refrain from more strikes ahead of a fresh round of talks set to take place on Tuesday.

This week will be particularly light on the earnings front, though there are a handful of S&P 500 names set to report, including beleaguered clothing giant Nike (NKE 41.21, +0.46, +1.1%).

There will be a few economic data releases of note throughout the week, though today's calendar is empty.

In corporate news:

• Apple (AAPL 248.18, +0.40, +0.1%) wants to purchase memory chips from China's CXMT, according to Financial Times.
• Google (GOOG, 339.00, +4.31, +1.3%) placed limits on Meta Platforms' (META 561.00, +10.75, +2.0%) use of its Gemini AI models, according to Financial Times.
• SpaceX (SPCX 157.07, +3.84, +2.5%) and Charter (CHTR 160.12, +26.48, +19.8%) had discussions about a mobile phone partnership, according to Bloomberg

Equity indices in the Asia-Pacific region began the week on a mostly higher note while South Korea's Kospi (-0.2%) remained pressured by Samsung and SK Hynix. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: +1.6%, China's Shanghai Composite: +1.2%, India's Sensex: -0.5%, South Korea's Kospi: -0.2%, Australia's ASX All Ordinaries: +0.7%.

In news:

• Hong Kong's Hang Seng (+1.6%) climbed off a 13-month low with the Hang Seng biotech index (+6.7%) recording its largest gain in more than four years.
• China's Ministry of Commerce added 20 Japanese companies to its export control list.
• The People's Bank of China conducted overnight repurchase operations for the first time.

In economic data:

• China's May Industrial Profit 18.8% YTD (last 18.2%)
• Japan's May Retail Sales 5.3% yr/yr (expected 3.1%; last 2.8%) and Large Retail Sales 5.3% yr/yr (expected 3.1%; last 2.8%)
• India's May Industrial Production 5.1% yr/yr (expected 4.7%; last 4.9%) and May Manufacturing Production 5.5% m/m (last 6.2%)

Major European indices trade just below their flat lines. STOXX Europe 600: -0.1%, Germany's DAX: -0.1%, U.K.'s FTSE 100: -0.4%, France's CAC 40: -0.4%, Italy's FTSE MIB: UNCH, Spain's IBEX 35: -0.2%. 

In news:

• President Trump threatened to impose a 100% tariff on imports from the EU and the U.K. if they impose a digital services tax on U.S. companies.
• European Central Bank President Lagarde will deliver the opening remarks from the ECB's policy forum in Portugal, where Fed Chairman Warsh will appear on Wednesday.
• Bank of England Chief Economist Pill said that the change in the Bank of England's communication strategy from a single forecast to multiple scenarios has made it more difficult for policymakers to reach a collective viewpoint.

In economic data:

• Eurozone's May Private Sector Loans 3.1% yr/yr (expected 2.9%; last 3.0%) and loans to nonfinancials 4.0% yr/yr (last 3.4%). June Business and Consumer Survey 95.0 (expected 94.3; last 93.7)
• U.K.'s May Mortgage Approvals 56,210 (expected 63,000; last 66,030) and Mortgage Lending GBP2.89 bln (expected GBP4.60 bln; last GBP4.44 bln)
• Spain's June CPI 0.6% m/m (last 0.1%); 3.2% yr/yr, as expected (last 3.2%). June Core CPI 2.9% yr/yr (last 2.9%)