Nvidia remains the center of gravity. The company announced a new chip, due this fall, designed to bring AI features to laptops and desktops. The project is tied to a three-year partnership with Microsoft, which Nvidia's Jensen Huang described as an effort to reinvent the PC for the AI era. Nvidia and Microsoft shares moved higher before the opening bell, while some other chip and device names, including AMD, Intel, Qualcomm and Apple, were under pressure. This is because companies are being divided into two groups: those seen as essential to the AI buildout, and those that look like they may be left watching from the hallway.

This is not only an American story. South Korea's market has been lifted by its AI exposure, and Nvidia's presence there has only added fuel. LG Electronics jumped on expectations that Huang would meet with the chairman of LG Group. That may say less about LG's immediate earnings power than about the almost comic power of proximity to Nvidia.

Europe, by contrast, looks less plugged into the trade. That may change if large AI infrastructure investments take root. SoftBank is planning a much bigger push into AI-focused data centers in France, pledging a massive €75 billion in investments.

The conflict with Iran continues to weigh on investors' minds. The United States said it struck radar and drone sites in Iran after an American drone was shot down. Iran said it launched its own strike, and Kuwait reported intercepting incoming drone and missile fire. Donald Trump said Iran wants a deal, but no breakthrough came over the weekend. Brent crude climbed toward $94 a barrel, while West Texas Intermediate rose above $90.

Friday's jobs report will be the main economic event. It comes ahead of Kevin Warsh's first policy meeting as Federal Reserve chairman, and at a time when traders are already pricing in a strong chance of a quarter-point rate increase before year-end. Inflation fears tied to higher energy costs make the labor market data even more important. A hot jobs number could strengthen the case for tighter policy. A weaker one might raise questions about how much strain the economy can take.

The week also brings several other useful signals. The final May manufacturing PMI is expected to hold steady, while the ISM services index is expected to improve slightly. Construction spending is also due. Central bank officials will be speaking before the Fed enters its blackout period on Saturday, and the Beige Book will offer a ground-level view of the economy.

In corporate news,  Broadcom reports Wednesday, and investors will watch closely because it is the second-largest U.S. chipmaker by market value after Nvidia. Palo Alto Networks and CrowdStrike will add cybersecurity to the week's technology mix, while Hewlett Packard will offer a broader read on corporate demand. Dell's strong forecast last week has already helped keep attention on AI servers.

There are also deal stories that show confidence has not vanished. Taylor Morrison Home jumped after Berkshire Hathaway agreed to buy the homebuilder for $6.8 billion in cash. Cadence Design Systems rose after launching an Nvidia-powered autonomous engineer for chip design. Micron crossed the $1,000 mark for the first time after a huge May rally. UBS analysts argue that the next phase of gains may depend on leadership moving beyond the mega-cap names, with more rotation inside equities and more frequent bursts of volatility as capital shifts around. That sounds right. A market led by a small number of giants can keep rising for a while, especially when those giants are producing real earnings. But for a rally to feel healthier, more companies need to participate.

This week will show whether investors can keep treating AI as the answer to almost every question. The jobs report, oil prices, Fed signals, and the latest developments in the Middle East will all push back against that story.

Today's economic highlights:

See the full calendar here.

  • Dollar index: 99.040
  • Gold: $4,505
  • Crude Oil (BRENT): $94.27 (WTI) $91.00
  • United States 10 years: 4.47%
  • BITCOIN: $72,880

In corporate news:

  • Berkshire Hathaway to acquire Taylor Morrison Home for 6.8 billion dollars in cash.
  • Universal Music Group turns down Pershing Square's EUR 55.6 billion takeover offer.
  • Exxon Mobil warns that global oil inventories are approaching critical operational levels amid Strait of Hormuz disruptions, seeing Brent potentially hitting $160.
  • Johnson & Johnson's prostate cancer drug reduces risk of cancer spread and death in late-stage study.
  • Yum! Brands in exclusive talks to sell Pizza Hut to LongRange Capital.
  • Eli Lilly gains exclusive rights to sonefpeglutide under a licensing and R&D collaboration deal with Haisco Pharmaceutical and Hanmi Pharm.
  • Devon Energy receives an 8 billion USD offer from Stone Ridge for its Marcellus Shale assets.
  • Summit Therapeutics' ivonescimab improves survival by 15% over tislelizumab/immunotherapy in Phase III lung cancer trials.
  • Exelixis says Cabometyx reduces risk of progression or death by 74% in non-functional neuroendocrine tumours, 60% in functional.
  • Eli Lilly's lung cancer drug candidate meets primary goal in late-stage trial.
  • Pfizer's Braftovi regimen nearly doubles median progression-free survival and cuts risk of progression and death in Phase 3 metastatic colorectal cancer trial.

  • Autodesk topped expectations in its latest quarter despite a 4% share decline following its earnings call.
  • Nvidia and Taiwan Semiconductor Manufacturing deepen their partnership to advance AI-driven semiconductor production.
  • Quantinuum weighs raising the number of shares in its IPO and increasing the price range by about 10%, according to Bloomberg.
  • Revolution Medicines' Phase 3 daraxonrasib trial shows survival benefit and improved quality of life in metastatic pancreatic cancer.
  • UCB and Biogen announce positive phase 3 results for DZP.
  • Incyte's pivotal frontMIND trial shows tafasitamab combination significantly prolonged progression-free survival, reducing risk of disease progression or death by 25% in previously untreated high-risk DLBCL.
  • The first Windows PCs equipped with Nvidia chips will arrive by the end of the year, to compete with AMD and Intel.
  • Meta is banking on an AI pendant and connected clothing to revive its hardware, according to The Information.
  • SLB announces its intention to acquire Tachyus.
  • Michael Dell announces the delivery of the first Dell Technologies system equipped with the Nvidia Vera Rubin NVL72 chip.
  • SoftBank announces a record investment of €75 billion in France. The group also becomes Japan's largest market capitalisation, overtaking Toyota.
  • The CEO of Nvidia unveils the RTX Spark PC chip designed with MediaTek.
  • Minimax is planning an initial public offering on the STAR Market in Shanghai.
  • Today's key earnings reports: Hewlett Packard Enterprise Company, Credo Technology Group Holding Ltd…

Analyst Recommendations:

  • Caesars Entertainment, Inc.: Texas Capital downgrades to hold from buy and reduces the target price from USD 44 to USD 31.
  • Dell Technologies Inc.: Morgan Stanley upgrades to market weight from underweight and raises the target price from USD 170 to USD 448.
  • Federal Realty Investment Trust: Mizuho Securities upgrades to outperform from neutral and raises the target price from USD 121 to USD 130.
  • Amd (Advanced Micro Devices): Barclays maintains its overweight recommendation and raises the target price from USD 500 to USD 665.
  • Bruker Corporation: Rothschild & Co Redburn maintains its buy recommendation and raises the target price from USD 55 to USD 69.
  • Dycom Industries, Inc.: KeyBanc Capital Markets maintains its overweight recommendation and raises the target price from USD 482 to USD 610.
  • Ford Motor Company: Citi maintains its neutral recommendation and raises the target price from USD 13 to USD 19.
  • General Motors Company: Citi maintains its buy recommendation and raises the target price from USD 108 to USD 131.
  • Globant S.a.: Morgan Stanley maintains its overweight recommendation and reduces the target price from USD 85 to USD 60.
  • Icon Public Limited Company: TD Cowen maintains its buy recommendation and raises the target price from USD 120 to USD 164.
  • Intel Corporation: Barclays maintains its equalweight recommendation and raises the target price from USD 65 to USD 100.
  • Match Group, Inc.: TD Cowen maintains its buy recommendation and raises the target price from USD 46 to USD 66.
  • Micron Technology, Inc.: Raymond James maintains its outperform rating and raises the target price from USD 530 to USD 1110.
  • Palo Alto Networks, Inc.: JP Morgan maintains its overweight recommendation and raises the target price from USD 200 to USD 300.
  • United Airlines Holdings, Inc.: Morgan Stanley maintains its overweight recommendation and raises the target price from USD 150 to USD 182.