S&P500 Today: Meta, Palantir Drive Tech Stocks as US Indices Firm on Trade

Stocks

Summary:

U.S. stock futures rose on trade optimism and tech strength, led by Meta and Palantir gains. Canada’s tax rollback eased tensions. Traders eye Fed signals and Trump’s spending bill impact.

S&P 500 futures firm as trade optimism and tech gains lift sentiment

U.S. stock futures climbed early Monday, positioning the S&P 500 to extend its record run as investors react to improving trade signals and strong premarket moves in key tech names.

Futures tied to the S&P 500 rose 0.4%, Nasdaq 100 futures added 0.5%, and Dow futures advanced 218 points, reflecting broad optimism as Wall Street closes out a strong June.

Will Canada’s tax rollback fuel tech momentum?

Canada’s decision to pull back its digital services tax, which would have targeted firms like Alphabet, Meta, and Amazon, removed a trade friction point just as tensions risked escalation.

President Trump had paused trade talks with Canada last week, but the rollback supports negotiations, easing a potential drag on tech valuations.

S&P500 Today: Meta, Palantir Drive Tech Stocks as US Indices Firm on Trade_1

Daily Meta Platforms, Inc

Meta climbed 2% premarket, Alphabet gained 1%, and Microsoft added 0.5%, supporting Nasdaq strength in early action.

Which stocks are moving before the bell?

Daily Hewlett Packard Enterprise Company

Hewlett Packard Enterprise surged 14% and Juniper Networks rose 8% after a DOJ settlement cleared their $14 billion merger, unlocking M&A momentum in tech infrastructure.

Moderna advanced 2% following positive late-stage flu vaccine data, supporting biotech sentiment.

GMS jumped over 11% after Home Depot announced a $4.3 billion acquisition plan, topping a prior bid from QXO.

Daily Palantir Technologies Inc

Palantir

gained 5% after expanding its federal AI partnership with Accenture, strengthening its government contract pipeline.

Disney rose 2% on a Jefferies upgrade to buy, citing strength in parks and an improving cruise outlook.

S&P500 Today: Meta, Palantir Drive Tech Stocks as US Indices Firm on Trade_4

Daily Tesla, Inc

Tesla slipped 1% premarket as President Trump’s fiscal package advanced, adding pressure to renewables and clean energy credits that could impact EV momentum.

What is the Federal Reserve signaling on rates?

Atlanta Fed President Raphael Bostic said Monday the Fed is unlikely to cut rates in July, noting inflation data and tariff impacts on labor markets remain unclear. Traders will closely watch upcoming inflation and employment prints, with policy patience from the Fed suggesting any easing could be delayed unless data weakens.

What should traders watch at the open?

The S&P 500 enters the session up 4.4% for June, while the Nasdaq has climbed nearly 6.1%.

Traders will watch for continued rotation into large-cap tech if trade optimism holds while monitoring Senate developments on President Trump’s spending bill, which could impact clean energy, defense, and infrastructure names.

With futures firm and sentiment constructive, the market is set to open with a positive bias unless early data or geopolitical headlines disrupt momentum.

Source: fxempire

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Gerik

Economic

Mainland Investors Drive a Market Repricing

Chinese investors, disillusioned with low yields and weak momentum in domestic markets, are shifting funds aggressively into Hong Kong stocks. Hong Kong’s H-share market—home to Chinese firms listed offshore—has gained a remarkable 21% in 2025 to date, outperforming China’s sluggish CSI 300 index. The capital migration has been so impactful that daily turnover in Hong Kong now sees 50% of activity driven by mainland buyers via the Stock Connect program, up from just 30% in early 2024, according to Societe Generale.

The influx is reshaping Hong Kong’s equity landscape. Fund managers describe it as a "gold rush" for undervalued assets, particularly in dual-listed stocks that trade at significant discounts in Hong Kong versus Shanghai. Investor Zhu Haifeng, for instance, now holds 80% of his portfolio in Hong Kong equities such as Tsingtao Brewery and Baiyunshan Pharmaceutical, citing their relative value.

Discounted Valuations, Higher Dividends Attract Yield Hunters

One of the key motivations behind this shift is yield. With China’s 10-year government bond yield hovering at a mere 1.65%, and deposit rates also at historic lows, Hong Kong’s equity market stands out. The dividend yield for Hong Kong-listed Chinese firms is now 3.7%, significantly above the CSI 300’s 2.9%. This has drawn in large institutional investors such as Ping An and China Life, particularly into high-dividend bank stocks.

The valuation premium of mainland A-shares over H-shares has also narrowed to a five-year low of under 30%, eroding some arbitrage opportunity but still leaving room for further convergence.

Strategic and Geopolitical Tailwinds Reinforce the Rally

Beyond fundamentals, Hong Kong’s market is also benefiting from broader geopolitical and macroeconomic shifts. As U.S. President Donald Trump threatens tariff hikes and continues his unpredictable trade maneuvering, Chinese investors view Hong Kong as a safer gateway for capital deployment. At the same time, expectations of U.S. rate cuts are weakening the dollar and amplifying flows into Asian equities.

The nature of Hong Kong's listed companies also plays a role. While mainland markets are dominated by state-owned and macro-sensitive sectors, Hong Kong’s bourse hosts tech titans like Tencent, Alibaba, and Xiaomi—companies at the heart of China’s AI and tech innovation push, and central to its strategic rivalry with the U.S.

Goldman Sachs recently issued “buy” ratings on 10 key Chinese firms, most of which are listed in Hong Kong and deeply involved in advanced technology, reflecting renewed global interest.

Hong Kong Becomes a Proxy for China’s ‘National Champions’

Analysts like Linda Lam of UBP emphasize that Hong Kong has effectively become a proxy market for China's "national champions." These are firms with both strategic importance and growth potential, often focused in tech and innovation sectors. In contrast, A-shares remain vulnerable to broader macroeconomic malaise, including sluggish domestic consumption and policy ambiguity.

The rally in Hong Kong also coincides with improved IPO momentum and stable capital controls that still limit full arbitrage, allowing the market to maintain its distinct pricing dynamics.

Momentum Likely to Continue

With policy rates unlikely to rise in China, and U.S. tariff uncertainty lingering, Hong Kong equities appear well-positioned to absorb further mainland capital. Retail and institutional investors alike are treating the H-share market as a yield refuge and a strategic hedge against domestic stagnation and global shocks.

Investment firms like CSOP Asset Management remain bullish, citing growing global investor attention and structural flows as key catalysts. If dividend yields hold and geopolitical shocks are avoided, Hong Kong’s rally may still have legs—especially if China's innovation sectors continue to thrive.

For now, Hong Kong is no longer just a global finance hub—it has become a strategic investment outpost in China's evolving economic playbook.

Source: Reuters

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Glendon

Forex

Economic

As the Trump administration's "big, beautiful bill" grinds its way through the US Senate, incentives are growing for foreign investors to diversify out of US Treasuries losing sheen from prospects of deficit spending and inflation-boosting tariffs.

President Donald Trump's sweeping tax cut and spending measure will boost US debt by US$3.3 trillion (RM13.9 trillion), the nonpartisan Congressional Budget Office estimates, while runaway deficits and swelling debt led Moody's to cut its credit rating in May.

"Definitely I'm concerned about the fiscal deficit expansion," said Toshinobu Chiba, a Tokyo-based rates and credit fund manager for Simplex Asset Management.

Chiba said he has been using futures to shift away from Treasuries and into European debt, but aims to move that trade to the cash bond market when Trump's "big, beautiful bill" passes and inflation expectations tick upwards.

"I think the first options should be Europe, especially the bunds and French bonds, and also Australia and Singapore are options for global investors."

Traditionally a refuge for markets, Treasuries have been volatile since April, becoming less attractive for overseas investors as Trump's erratic policies on tariffs and taxes drove them to pare exposure to the dollar and US markets.

US Treasury International Capital (TIC) data shows foreign money leaving US short and long-term debt and banking flows stood at a net US$14.2 billion in April, the same month that Trump rattled global markets with his "Liberation Day" tariffs.

The US national debt has increased fourfold in less than 10 years to some US$36 trillion, with about US$29 trillion held publicly.

Japan is the biggest external holder of Treasuries with US$1.13 trillion, followed by Britain with US$807.7 billion and China with US$757.2 billion, TIC data showed.

Treasuries fell in the aftermath of the tariff news, with benchmark 10-year yields reaching as high as 4.629% on May 22 before settling down to about 4.277%. Treasury 10-year yields have swung between 3.9% and 4.629% since April.

Passage of Trump's long-simmering bill would give investors another reason to fret about the state of US finances.

Senators debating the measure in a marathon weekend session were expected to pass it late on Monday and in the Asian trading day on Tuesday.

Senate Republicans are set on using an alternative calculation method for the bill's cost that does not factor in extending the 2017 tax cuts and seems to save US$500 billion, according to an analysis by the Bipartisan Policy Center.

Prospects for even wider deficits in the US may compel European investors to dump Treasuries and bring their money home, said Gustavo Medeiros, the London-based global head of research at emerging markets investment manager Ashmore Group.

When Treasuries and other major bond markets sold off in April, the Bund market held firm.

Though the amount of German debt is also growing after the new government's trillion euro defence and infrastructure spending push, Europe's biggest economy is the only Group of Seven member with a debt-to-gross domestic product ratio below 100%, bolstering its safe-haven credentials.

"That not only creates an upward, better opportunity for the equity markets, but it also is going to increase the issuance of risk-free German bunds and pan-European debt," Medeiros said.

"So you are going to have a lot of incentive for capital to come back."

Yet a widespread sell-off is unlikely, despite fiscal concerns over Trump's spending bill that are expected to steepen the Treasury yield curve as investors demand higher returns to hold US debt for longer, said analyst Masahiko Loo.

"The reduction in foreign US Treasury holdings has been a long-term structural trend rather than a sudden exodus," said Loo, a senior fixed income strategist at State Street.

"It is a 'diversification, not divestment' story with foreign investors, particularly in Asia."

Hemant Mishr, the group chief investment officer of SCUBE Capital, is also betting on a steeper Treasury curve.

"The markets are worried and US risk premiums will further widen," he said. "We expect US credit default swaps to continue quoting at a substantial premium to similarly rated sovereigns."

Source: Reuters

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Warren Takunda

Economic

Middle East Situation

Asia’s dependence on Middle East oil and gas — and its relatively slow shift to clean energy — make it vulnerable to disruptions in shipments through the Strait of Hormuz, a strategic weakness highlighted by the war between Israel and Iran.

Iran sits on the strait, which handles about 20% of shipments of the world’s oil and liquefied natural gas, or LNG. Four countries — China, India, Japan and South Korea — account for 75% of those imports.

Japan and South Korea face the highest risk, according to analysis by the research group Zero Carbon Analytics, followed by India and China. All have been slow to scale up use of renewable energy.

In 2023, renewables made up just 9% of South Korea’s power mix, well below the 33% average among other members of the Organization for Economic Cooperation and Development, or OECD. In the same year, Japan relied more heavily on fossil fuels than any other country in the Group of Seven, or G7.

A truce in the 12-day Israel-Iran war appears to be holding at the time of writing, reducing the potential for trouble for now. But experts say the only way to counter lingering uncertainty is to scale back reliance on imported fossil fuels and accelerate Asia's shift to clean, domestic energy sources.

“These are very real risks that countries should be alive to — and should be thinking about in terms of their energy and economic security,” said Murray Worthy, a research analyst at Zero Carbon Analytics.

Japan and South Korea are vulnerable

China and India are the biggest buyers of oil and LNG passing through the potential chokepoint at the Strait of Hormuz, but Japan and South Korea are more vulnerable.

Japan depends on imported fossil fuels for 87% of its total energy use and South Korea imports 81%. China relies on only 20% and India 35%, according to Ember, an independent global energy think tank that promotes clean energy.

“When you bring that together — the share of energy coming through the strait and how much oil and gas they rely on — that’s where you see Japan really rise to the top in terms of vulnerability,” said Worthy.

Three-quarters of Japan’s oil imports and more than 70% of South Korea’s oil imports — along with a fifth of its LNG — pass through the strait, said Sam Reynolds of the Institute for Energy Economics and Financial Analysis.

Both countries have focused more on diversifying fossil fuel sources than on shifting to clean energy.

Japan still plans to get 30-40% of its energy from fossil fuels by 2040. It's building new LNG plants and replacing old ones. South Korea plans to get 25.1% of its electricity from LNG by 2030, down from 28% today, and reduce it further to 10.6% by 2038.

To meet their 2050 targets for net-zero carbon emissions, both countries must dramatically ramp up use of solar and wind power. That means adding about 9 gigawatts of solar power each year through 2030, according to the thinktank Agora Energiewende. Japan also needs an extra 5 gigawatts of wind annually, and South Korea about 6 gigawatts.

Japan's energy policies are inconsistent. It still subsidises gasoline and diesel, aims to increase its LNG imports and supports oil and gas projects overseas. Offshore wind is hampered by regulatory barriers. Japan has climate goals, but hasn't set firm deadlines for cutting power industry emissions.

“Has Japan done enough? No, they haven’t. And what they do is not really the best,” said Tim Daiss, at the APAC Energy Consultancy, citing Japan's program to increase use of hydrogen fuel made from natural gas.

South Korea's low electricity rates hinder the profitability of solar and wind projects, discouraging investment, a “key factor” limiting renewables, said Kwanghee Yeom of Agora Energiewende. He said fair pricing, stronger policy support and other reforms would help speed up adoption of clean energy.

China and India have done more — but gaps remain

China and India have moved to shield themselves from shocks linked to changing global energy prices or trade disruptions.

China led global growth in wind and solar in 2024 and generating capacity rose 45% and 18%, respectively. It has also boosted domestic gas output even as its reserves have dwindled.

By making more electricity at home from clean sources and producing more gas domestically, China has managed to reduce imports of LNG, though it still is the world's largest oil importer, with about half of the more than 11 million barrels per day that it brings in coming from the Middle East. Russia and Malaysia are other major suppliers.

India relies heavily on coal and aims to boost coal production by around 42% from now to 2030. But its use of renewables is growing faster, with 30 additional gigawatts of clean power coming online last year, enough to power nearly 18 million Indian homes.

By diversifying its suppliers with more imports from the US, Russia and other countries in the Middle East, it has somewhat reduced its risk, said Vibhuti Garg of the Institute for Energy Economics and Financial Analysis.

“But India still needs a huge push on renewables if it wants to be truly energy secure,” she said.

Risks for the rest of Asia

A blockade of the Strait of Hormuz could affect other Asian countries and building up their renewable power generating capacity will be a “crucial hedge” against the volatility intrinsic to importing oil and gas, said Reynolds of the Institute for Energy Economics and Financial Analysis.

Southeast Asia has become a net oil importer as demand in Malaysia and Indonesia has outstripped supplies, according to the ASEAN Centre for Energy in Jakarta, Indonesia. The 10-nation Association of Southeast Asian Nations still exports more LNG than it imports due to production by Brunei, Indonesia, Malaysia, and Myanmar. But rising demand means the region will become a net LNG importer by 2032, according to consulting firm Wood Mackenzie.

Use of renewable energy is not keeping up with rising demand and production of oil and gas is faltering as older fields run dry.

The International Energy Agency has warned that ASEAN's oil import costs could rise from $130 billion in 2024 to over $200bn by 2050 if stronger clean energy policies are not enacted.

"Clean energy is not just an imperative for the climate — it’s an imperative for national energy security,” said Reynolds.

On Friday, the price of Brent crude oil, the international benchmark, was up 0.55% on the day at $68.10 a barrel. Over the month, the fuel has risen by 6.26% in value, although prices have pulled back from last week’s peak.

Source: Euronews

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ING

Economic

Forex

While the European Central Bank reports year-on-year growth in bank lending in its press release, we like to compare slightly shorter time frames to better capture developments in recent months. We notice some weakening effects of monetary transmission in the numbers.

In May, bank lending to non-financial corporates declined compared to April - the first decline since July last year. While volatile, the three-month average growth rate has been dropping steadily, indicating that bank lending to corporates is not seeing many positive effects from the ECB moving its interest rates to neutral at this point.

Meanwhile, there is a break from the trend with bank lending growth to households, which accelerated over the course of 2024 but seems to have plateaued at just over 0.2% month-on-month this year. May saw a small tick down in the growth pace, which is now at the weakest level since November. Overall, we're seeing a levelling off effect, which suggests that monetary easing conditions are not translating as forcefully through the lending channel anymore.

Uncertainty has prompted businesses to become more reluctant to borrow for investment purposes, as the bank lending survey from April showed. Since then, uncertainty has only increased, which makes a downturn for borrowing in May understandable. The big question is how long this uncertainty will continue to suppress borrowing appetite among businesses, as this suppresses investment in the eurozone economy.

The ECB is widely expected to pause its rate cuts in July. This is not necessarily to see how its policies are playing out, but mainly to see how the economic environment is shaping up in times of huge uncertainty. If economic uncertainty has become so large that it starts to weaken lending and investment substantially, that could provide another dovish argument for a further rate cut in September.

Source: ING

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Warren Takunda

Stocks

London stocks had pared earlier small gains to trade flat by midday on Monday, as investors mulled a raft of UK data releases and amid hopes of a US-Canada trade deal.

The FTSE 100 was steady at 8,796.43.

Dan Coatsworth, investment analyst at AJ Bell, said: "There is a lot going on to influence markets before the summer lull and investors’ animal spirits continue to fuel the equities space.

"Investors seem confident trade deals will be struck, geopolitical tensions ease, and a major economic slump is avoided. The big unknown is whether investors are correct or are simply being too complacent.

"Following yet another bust-up between the US and Canada, the latter has now scrapped its digital services tax aimed at US tech firms and resumed trade talks. This has brought a sense of calm to markets, also helped by an extended deadline for negotiations whereby Canada has an extra week and a bit to agree a trade deal. It also provides some hope that other countries will get extra time to deal with the Trump administration beyond the 9 July cut-off."

On home shores, investors mulled the latest monthly Money and Credit report from the Bank of England, which showed mortgage approvals nudged higher in May, beating expectations.

Net mortgage approvals were 63,032 last month. That was a 2,376 increase on April, and higher than forecasts for 59,750.

Net borrowing of mortgage debt was also higher. It rose £2.8bn to £2.1bn, following April’s £13.8bn slump. The slide had been prompted by buyers rushing to complete in March ahead of changes to stamp duty thresholds.

The effective interest rate - the actual interest paid - on newly drawn mortgages decreased marginally in May to 4.47% from 4.49%.

Earlier, figures from the Office for National Statistics showed the economy grew 0.7% in the first three months of the year, confirming a preliminary estimate released in May.

Growth was driven by a 0.7% increase in the services sector, while production also grew, by 1.3%, and the construction sector saw 0.3% growth.

ONS director of economic statistics Liz McKeown said: "While overall quarterly growth was unrevised, our updated set of figures show the economy still grew strongly in February, with growth now coming in a little higher in March too.

"There was broad based growth across services, while manufacturing also had a strong quarter.

"The saving ratio fell for the first time in two years this quarter, as rising costs for items such as fuel, rent and restaurant meals contributed to higher spending, although it remains relatively strong."

Investors were also digesting the latest growth indicator from the Confederation of British Industry, which showed that UK companies remain deeply uncertain about their near-term growth prospects as they continue to battle higher costs and global headwinds.

In equity markets, defence firms Rolls-Royce and Babcock were among the risers.

Babcock in particular got a boost as Citi hiked its price target on the shares to 1,338p from 730p and reiterated its ‘buy’ rating as it said growth is likely to accelerate over the next 10 years.

Chemring advanced after announcing the acquisition of Hampshire-based software-defined radio systems manufacturer Landguard Nexus in a deal worth as much as £20m.

Water company Pennon rallied after an upgrade to ‘buy’ at Deutsche Bank.

On the downside, British Gas owner Centrica was knocked lower by a downgrade to ‘neutral’ from ‘overweight' at JPMorgan, which cited limited valuation upside.

WH Smith tumbled after it sold its high street business for £12m less than expected following a period of "softer trading".

Source: Sharecast

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Glendon

Political

Palestinians in northern Gaza reported one of the worst nights of Israeli bombardment in weeks after the military issued mass evacuation orders on Monday, while Israeli officials were due in Washington for a new ceasefire push by the Trump administration.

A day after U.S. President Donald Trump urged an end to the 20-month-old war, a confidant of Prime Minister Benjamin Netanyahu was expected at the White House for talks on a Gaza ceasefire, Iran, and possible wider regional diplomatic deals.

But on the ground in the Palestinian enclave there was no sign of fighting letting up.

"Explosions never stopped; they bombed schools and homes. It felt like earthquakes," said Salah, 60, a father of five children, from Gaza City. "In the news we hear a ceasefire is near, on the ground we see death and we hear explosions."

Israeli tanks pushed into the eastern areas of Zeitoun suburb in Gaza City and shelled several areas in the north, while aircraft bombed at least four schools after ordering hundreds of families sheltering inside to leave, residents said.

At least 25 people were killed in Israeli strikes on Monday, health authorities said, including 10 people killed in Zeitoun.

There was no immediate comment from the Israeli military, which says Palestinian militants embed among civilians. The militant groups deny this.

The heavy bombardment followed new evacuation orders to vast areas in the north, where Israeli forces had operated before and left behind wide-scale destruction. The military ordered people there to head south, saying that it planned to fight Hamas militants operating in northern Gaza, including in the heart of Gaza City.

NEXT STEPS

A day after Trump called to "Make the deal in Gaza, get the hostages back", Israel's strategic affairs minister Ron Dermer, a confidant of Netanyahu's, was expected on Monday at the White House for talks on Iran and Gaza, an Israeli official said.

In Israel, Netanyahu's security cabinet was expected to convene to discuss the next steps in Gaza.

On Friday, Israel's military chief said the present ground operation was close to having achieved its goals, and on Sunday, Netanyahu said new opportunities had opened up for recovering the hostages, 20 of whom are believed to still be alive.

Palestinian and Egyptian sources with knowledge of the latest ceasefire efforts said that mediators Qatar and Egypt have stepped up their contacts with the two warring sides, but that no date has been set yet for a new round of truce talks.

A Hamas official said that progress depends on Israel changing its position and agreeing to end the war and withdraw from Gaza. Israel says it can end the war only when Hamas is disarmed and dismantled. Hamas refuses to lay down its arms.

The war began when Hamas fighters stormed in to Israel on October 7 2023, killed 1,200 people, most of them civilians, and took 251 hostages back to Gaza in a surprise attack that led to Israel's single deadliest day.

Israel's subsequent military assault has killed more than 56,000 Palestinians, most of them civilians, according to the Gaza health ministry, has displaced almost the entire 2.3 million population and plunged the enclave into a humanitarian crisis.

More than 80% of the territory is now an Israeli-militarized zone or under displacement orders, according to the United Nations.