Nvidia in Focus as Oil Holds Near $110

Nvidia remained firmly in focus ahead of results due on Wednesday as Nasdaq futures turned lower and semiconductor shares weakened after a strong rally since March. The FTSE 100 posted gains on Monday, supported by higher energy stocks as Brent crude held near $110 per barrel despite easing after Donald Trump paused a planned strike on Iran. The US dollar steadied near ¥159 against the yen, while sterling slipped to $1.341. Gold traded lower near $4,543 an ounce as bond markets stabilised after recent heavy selling.

Equities

The FTSE 100 closed 1.3% higher on Monday at 10,323.8 points, supported by a rise in energy shares as oil prices climbed amid continued disruption to shipping through the Strait of Hormuz. The FTSE 250 slipped 0.07%, with investors also weighing political uncertainty after Prime Minister Keir Starmer faced renewed pressure following poor local election results earlier this month.

Energy stocks led gains in London trading, with the FTSE energy sector rising 2.9% late on Monday as Brent crude futures added 1.6%. Banks also moved higher, with the banking sector up 1% after the UK finance ministry outlined planned reforms to ring-fencing rules aimed at creating what it described as a more agile regulatory framework for lenders.

Homebuilder shares came under pressure after property website Rightmove reported that asking prices for British homes rose by more than usual for the time of year in May, adding to concerns about inflation and borrowing costs. The FTSE homebuilder sector closed 0.5% lower on Monday.

In the United States, the Dow Jones Industrial Average rose 0.32% late on Monday to 49,686.12, while the S&P 500 edged down 0.07% and the Nasdaq Composite fell 0.51%. Technology stocks weakened as Treasury yields climbed to their highest level since February 2025 earlier in the session.

Nvidia closed 1.3% lower on Monday ahead of results due later this week, with investors focusing on whether demand for artificial intelligence chips can continue to support the company’s sharp share price recovery since March. The Philadelphia Semiconductor Index dropped 3.3% by the close.

Walmart gained 1.4% late on Monday ahead of earnings this week, with investors watching closely for updates on consumer spending trends and the effect of higher energy prices on household budgets.

Dominion Energy jumped 9.4% after NextEra Energy agreed an all-stock takeover valued at roughly $66.8 billion. NextEra shares fell 4.6% following the announcement. Regeneron dropped 9.8% after its experimental skin cancer treatment failed to meet the main goal in a late-stage melanoma trial.

Forex & Commodities

The US dollar steadied in Asian trading early on Tuesday after President Donald Trump paused a planned military strike against Iran to allow further negotiations. The dollar index moved higher to 99.08 after breaking a five-day winning streak late on Monday as traders reassessed geopolitical risks.

Against the Japanese yen, the dollar rose to ¥158.9 early on Tuesday after data showed Japan’s economy grew at an annualised rate of 2.1% in the first quarter, ahead of expectations for 1.7% growth. Japanese finance minister Satsuki Katayama said late on Monday that Tokyo remained ready to act against excessive currency volatility while seeking to avoid pushing higher US Treasury yields through intervention.

Sterling weakened against the US dollar early on Tuesday, with the pound trading at $1.341. The euro also moved lower to $1.164, while the Australian dollar fell to $0.7135 after minutes from the Reserve Bank of Australia’s May meeting showed policymakers debated leaving interest rates unchanged before ultimately delivering another quarter-point increase.

The Reserve Bank minutes also showed officials believed borrowing costs were now restrictive after three rate rises this year. Capital Economics said the central bank had not given a clear signal on its next move but still appeared biased towards tighter policy.

Bond markets steadied after heavy selling at the start of the week. The yield on the US 10-year Treasury note eased to 4.597% early on Tuesday after reaching its highest level in more than a year during the previous session.

Oil prices moved lower after Trump said there was a “very good chance” of reaching an agreement with Iran over its nuclear programme. Brent crude fell to $109.8 per barrel early on Tuesday, while US crude traded at $107.0, although both benchmarks remained sharply above levels seen before the conflict began.

Spot gold slipped to $4,543 per ounce early on Tuesday but remained above Monday’s six-week low. Markets are also watching for the release of minutes from the Federal Reserve’s April policy meeting on Wednesday, while Kevin Warsh is due to be sworn in as Federal Reserve chair on Friday.