Nasdaq Hits Record as Oil Jumps Above $105

Summary

Nasdaq futures held near record highs on Monday after the index closed at fresh peaks on Friday, supported by continued strength in AI-linked shares including Nvidia, Micron Technology and Sandisk. Oil climbed above $105 a barrel in Asian trading after President Donald Trump rejected Iran’s latest peace proposal, while the US dollar strengthened and sterling slipped to $1.359. The FTSE 100 ended last week lower as IAG fell after warning over higher fuel costs, while Cloudflare slumped after announcing job cuts and weaker revenue guidance.

Equities

The FTSE 100 closed 0.4% lower on Friday at 10,233.07, marking its third consecutive weekly decline as investors weighed renewed tension in the Gulf alongside political uncertainty in the UK. The FTSE 250 also ended the session 0.2% lower, while sterling strengthened after local election losses for Prime Minister Keir Starmer’s Labour Party raised questions about the government’s position.

IAG, the owner of British Airways, closed 2.8% lower on Friday after warning that annual profit would come in below previous forecasts. Management also said jet fuel costs are expected to rise by roughly €2 billion in 2026 compared with last year because of disruption linked to the Middle East conflict and higher oil prices.

Intertek fell 2.7% by the close in London trading after rejecting a third takeover proposal from Swedish private equity group EQT. The latest approach valued the testing and inspection company at £8.93 billion, but the board again declined the offer.

UK housing data also added to the cautious tone after figures showed house prices fell for a second straight month in April, with buyer demand weakening as oil prices climbed back above $100 a barrel following fresh exchanges between US and Iranian forces.

In the US, the S&P 500 rose 0.84% on Friday to close at a record 7,398.93, while the Nasdaq jumped 1.71% to another all-time high at 26,247.08. The Dow Jones Industrial Average edged 0.02% higher. Stronger-than-expected US jobs data reinforced expectations that the Federal Reserve will keep interest rates unchanged for the rest of the year.

Nvidia closed 1.8% higher on Friday, extending gains as demand tied to AI infrastructure continued to support semiconductor shares. Micron Technology and Sandisk both surged more than 15% during the session as investors reacted to strong demand for memory and storage products used in AI data centres.

Cloudflare dropped 24% after announcing plans to cut around 20% of its workforce and issuing second-quarter revenue guidance below Wall Street expectations. Expedia ended Friday 9% lower after warning that conflict in the Middle East was reducing travel demand, while CoreWeave fell 11.4% after increasing the lower end of its annual capital expenditure forecast because of higher component costs.

Forex & Commodities

The US dollar strengthened for a second straight session in Asian trading on Monday after stronger-than-expected US labour market data and renewed tension in the Middle East supported demand for the currency. The euro fell to $1.176 against the dollar, while sterling weakened to $1.359. The Japanese yen also slipped, with the dollar trading at 157.2 yen early on Monday.

The Australian dollar edged lower to $0.7229 and the New Zealand dollar fell to $0.5948 as investors reacted to rising oil prices and reduced expectations for near-term US interest rate cuts. China’s offshore yuan moved in the opposite direction, strengthening to 6.794 per dollar for an eighth consecutive session ahead of President Donald Trump’s planned visit to Beijing later this week.

The US dollar index rose to 98.10 after Friday’s non-farm payrolls report showed the American economy added 115,000 jobs in April, comfortably ahead of expectations. The figures reinforced expectations that the Federal Reserve will leave interest rates unchanged for an extended period after policymakers last month kept rates steady while revealing an unusually sharp split between officials over the future path of monetary policy.

Oil prices climbed sharply in Asian trading on Monday after President Trump rejected Iran’s latest response to a US peace proposal. Brent crude rose to $105.9 a barrel after hopes for a quick resolution to the conflict faded and disruption in the Strait of Hormuz continued to restrict energy supplies.

Gold prices fell on Monday morning as higher oil prices fuelled concern that inflation could remain elevated for longer. Spot gold dropped to $4,658 per ounce as the stronger dollar also reduced demand for bullion priced in US currency.