Nasdaq set to bounce back strongly with Fed rates and Iran strikes still in headlines

• Nasdaq futures rose 1.2% ahead of Monday's open, while S&P 500 futures gained 0.6%, with WTI crude retreating to just above $91 after spiking from below $90 on Friday
• Asian markets declined sharply as South Korea's Kospi plunged 8.3%, Japan's Nikkei fell 3.9%, and Hong Kong's Hang Seng dropped 1.2% following Wall Street's rout
• Key US CPI and PPI inflation reports are due this week alongside the SpaceX IPO, while traders have scaled back rate cut expectations and are pricing in a possible rate increase later this year

Market Summary: Nasdaq Poised for Recovery Amid Fed Policy and Geopolitical Tensions

Market Overview:

US technology stocks are expected to lead a Wall Street rebound on Monday, June 8, 2026, following a sharp sell-off that ended the S&P 500's nine-week winning streak. Nasdaq futures rose 1.2%, while S&P 500 futures gained 0.6% and Dow Jones futures advanced 0.2%.

Friday's Sell-Off:

Markets experienced significant losses with the Nasdaq plunging 4.2% to 25,709 (its largest single-day drop in a year), the S&P 500 falling 2.6% to 7,384, and the Dow Jones declining 695 points (1.4%) to 50,867. Asian markets followed suit, with South Korea's Kospi down 8.3%, Japan's Nikkei falling 3.9%, and Hong Kong's Hang Seng dropping 1.2%.

Key Drivers:

The sell-off stemmed from concerns over inflated AI-related valuations and a reassessment of Federal Reserve policy following stronger-than-expected US jobs data. Traders have scaled back rate cut expectations and are now pricing in potential rate increases later this year.

Geopolitical Tensions:

Oil prices spiked as Israel and Iran exchanged strikes—the first direct military confrontation since an April ceasefire. WTI crude peaked at $95/barrel before retreating to $91 as both nations signaled interest in avoiding broader regional conflict.

Other Market Movements:

Gold fell below $4,300/ounce (first time since December), the US dollar index rose above 100 (first since April), and Bitcoin recovered above $63,000 after hitting October 2024 lows.

Outlook:

Key US CPI and PPI inflation reports are expected this week, alongside the SpaceX IPO. Analysts note markets are showing "two-way price action" after weeks of gains, suggesting the bull market may be losing momentum.