Stocks Push Higher as AI Optimism Offsets Oil Rebound – Europe Market Wrap

Stocks extended their advance on Monday, shrugging off a rebound in oil prices as a lasting peace agreement between the US and Iran remained out of reach.

Futures pointed to fresh record highs for US equities at the start of June after a powerful rally in chipmakers helped drive the S&P 500 to 11 record closes in May. Microsoft gained 3.1% in premarket trading as software shares rallied after Nvidia’s Jensen Huang downplayed concerns about disruption from artificial intelligence. Nvidia rose 1.8% following news of its planned entry into the PC market.

Oil was poised to end a three-day losing streak. Brent crude climbed 3% to nearly $94 a barrel as uncertainty persisted over whether Washington and Tehran were making progress toward a long-term ceasefire and the reopening of the Strait of Hormuz. Bonds weakened, with the 10-year Treasury yield rising three basis points to 4.47%.

Investors are looking for confirmation that negotiations remain on track after Israel intensified operations against Iran-backed Hezbollah in Lebanon over the weekend. Tehran launched a strike on a Kuwaiti airbase, while the US carried out what it described as self-defense attacks on Iranian radar and command-and-control facilities.

In Asia, SoftBank surged 14%, overtaking Toyota as Japan’s most valuable listed company. South Korea’s Kospi advanced 3.7%, extending its gain for 2026 to 108%. European equities slipped 0.1%.

US markets continue to be driven by enthusiasm surrounding artificial intelligence, supported by strong corporate earnings and optimistic business outlooks that have reinforced confidence in the rally. A US semiconductor index is on track for its strongest quarter on record after soaring 69% over the past two months.