The S&P 500 futures currently trade four points below fair value.

Shares of Berkshire Hathaway (BRK.B 375.06, +2.05, +0.4%) are modestly higher in the premarket after the company beat Q1 earnings and revenue expectations. The company's nearly $400 billion cash position has drawn some attention from analysts, though new CEO Greg Abel reiterated the company's core holdings while also addressing artificial intelligence, according to CNBC.

Elsewhere, stocks with ties to cryptocurrency, such as Coinbase (COIN 198.30, +7.05, +3.7%), are higher in the premarket after Senators reached a bipartisan agreement on language in the CLARITY Act, restricting crypto companies from paying interest or yield on passive deposits, according to CNBC.

Equity futures point to a mostly lower open this morning amid escalating tensions between the U.S. and Iran, which are sending oil prices higher.

Stocks are coming off a winning week that saw the S&P 500 and Nasdaq Composite reach record highs multiple times, including on Friday. Oil prices were volatile last week as well, but the market was buoyed by an impressive week of mega-cap earnings, featuring massive beats across several "magnificent seven" names and, in many cases, impressive forward guidance.

This week will be nearly just as busy on the earnings front, though not quite so when it comes to mega-cap tech names.

This morning's weakness is being attributed to renewed tensions on the geopolitical front, with President Trump threatening more strikes against Iran. The U.S. & Iran are still exchanging drafts of a framework agreement to end the war, but President Trump says he can't imagine that Iran's current offer will be acceptable, according to Axios. Additionally, there are conflicting reports that Iran struck a U.S. ship with a missile near the Strait of Hormuz, though U.S. officials have denied the claims.

Currently, crude oil is up $2.04 (+2.0%) to $103.98 per barrel.

In corporate news:

• Exxon (XOM 153.65, +0.90, +0.6%) is looking seriously at Venezuela after earlier telling President Trump that the country was not worth investing in, according to Bloomberg.
• GameStop (GME 25.85, -0.68, -2.6%) has proposed to buy eBay (EBAY 112.05, +7.93, +7.8%) for $125 per share in a cash and stock deal.
• Norwegian Cruise Line Holdings (NCLH 17.62, -1.19, -6.3%) beat EPS expectations by $0.09, missed revenue expectations, and guided Q2 and FY26 EPS below consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a higher note while markets in China and Japan were closed for holidays. Japan's Nikkei: CLOSED, Hong Kong's Hang Seng: +1.2%, China's Shanghai Composite: CLOSED, India's Sensex: +0.5%, South Korea's Kospi: +5.1%, Australia's ASX All Ordinaries: -0.4%.

In news:

• China's markets will remain closed tomorrow while Japan's markets will be closed through Wednesday.
• South Korea's Kospi jumped more than 5.0% to a fresh record high after being closed on Friday.
• Japan's Prime Minister Takaichi pledged to increase defense cooperation with Australia.
• A senior Bank of Korea policymaker believes that the central bank should consider a rate hike, according to Yonhap.

In economic data:

• South Korea's April Manufacturing PMI 53.6 (last 52.6)
• Singapore's April Manufacturing PMI 50.7 (last 50.5)
• Australia's April MI Inflation Gauge 0.6% (last 1.3%) and April ANZ Job Advertisements -0.8% (last -3.2%). March Building Approvals -10.5% m/m (expected -10.2%; last 31.0%); 9.0% yr/yr (last 16.1%). March Private House Approvals 0.9% m/m (last 2.0%)
• India's April Manufacturing PMI 54.7 (expected 55.9; last 53.9)

Major European indices trade in the red while the U.K.'s FTSE is closed for Early May Bank Holiday. STOXX Europe 600: -0.4%, Germany's DAX: UNCH, U.K.'s FTSE 100: CLOSED, France's CAC 40: -0.9%, Italy's FTSE MIB: -0.8%, Spain's IBEX 35: -1.6%.

In news:

• The European Central Bank's survey of professional forecasters raised the 2026 harmonized inflation forecast for the EU to 2.2% from 1.8% while the growth outlook was reduced to 1.0% from 1.2%.
• ECB policymaker De Guindos said that the war impact has not been fully reflected in economic data, but forward indicators point to a significant impact.
• Meanwhile, policymaker Rehn said that fast action will be needed if second-round inflation effects appear.

In economic data:

• Eurozone's April Manufacturing PMI 52.2, as expected (last 51.6). May Sentix Investor Confidence -16.4 (expected -20.9; last -19.2)
• Germany's April Manufacturing PMI 51.4 (expected 51.2; last 52.2)
• Italy's April Manufacturing PMI 52.1 (expected 51.6; last 51.3)
• France's April Manufacturing PMI 52.8, as expected (last 50.0)
• Spain's April Manufacturing PMI 51.7 (expected 49.5; last 48.7)
• Swiss April Manufacturing PMI 54.5 (expected 52.0; last 53.3)

[BRIEFING.COM] The S&P 500 (+0.3%) and Nasdaq Composite (+0.9%) started May on a high note as strength in mega-cap and tech names propelled the indices to fresh record highs, while the DJIA (-0.3%) lagged amid weakness in the broader market.

Only two S&P 500 sectors finished in positive territory, though the top-weighted information technology sector's (+1.4%) gain was wide enough to prompt index-level growth.

Apple (AAPL 280.14, +8.79, +3.24%) kept momentum rolling across mega-cap tech after topping earnings estimates and providing upside guidance for the next quarter, while Microsoft (MSFT 414.20, +6.42, +1.57%) recovered some of yesterday's post-earnings weakness.

Though not a component of the S&P 500, Atlassian (TEAM 88.88, +20.29, +29.58%) was another notable earnings standout, and the iShares GS Software ETF finished 3.2% higher.

The PHLX Semiconductor Index (+0.9%) also finished higher amid a busy week for memory storage names. Sandisk (SNDK 1187.00, +90.49, +8.25%) moved sharply higher after earnings while Western Digital (WDC 431.52, -3.00, -0.69%) faced some sell-the-news pressure, and Seagate Tech (STX 726.93, +53.29, +7.91%) extended yesterday's massive rally.

The consumer discretionary sector (+0.5%) was the only other sector to finish with a gain, supported by strength in its mega-cap components Tesla (TSLA 390.82, +9.19, +2.41%) and Amazon (AMZN 268.26, +3.20, +1.21%).

The Vanguard Mega Cap Growth ETF finished 0.9% higher, helping the market-weighted S&P 500 (+0.3%) outperform the S&P 500 Equal Weighted Index (-0.3%).

Elsewhere in the sector, cruise lines and courier names outperformed as oil prices retreated today, with crude oil futures settling today's session $3.31 lower (-3.2%) at $101.84 per barrel.

The energy sector (-1.3%) was the worst-performing S&P 500 sector as a result.

The industrials sector (-0.9%) also underperformed after yesterday's sharp gain that followed CAT's earnings release, though airline names such as United Airlines (UAL 92.52, +2.52, +2.80%) and Southwest Air (LUV 38.76, +0.84, +2.22%) traded higher amid the retreat in oil prices and reports that Spirit Airlines is preparing to shut down operations.

Losses across the other S&P 500 sectors were modest in nature as the market ended the week in a relatively quiet fashion after a record-setting week.

Still, strong mega-cap and tech leadership, which was largely a product of impressive earnings growth, has the S&P 500 and Nasdaq Composite pushing further into record territory to start the month of May.

U.S. Treasuries started May on a quiet note, largely thanks to Labor Day closures that significantly reduced the participation of international investors on Friday. The 2-year note yield settled up one basis point to 3.89% (+11 basis points this week), and the 10-year note yield settled down one basis point to 4.38% (+7 basis points this week).

• Russell 2000: +13.3% YTD
• S&P Mid Cap 400: +10.1% YTD
• Nasdaq Composite: +8.1% YTD
• S&P 500: +5.6% YTD
• DJIA: +3.0% YTD

Reviewing today's data:

• April S&P Global U.S. Manufacturing PMI - Final 54.5; Prior 54.0
• April ISM Manufacturing Index 52.7% (Briefing.com consensus 53.1%); Prior 52.7%
  • The key takeaway from the report is that it had some stagflation aspects for the manufacturing sector, namely low growth, a further contraction in employment, and a stark increase in the prices index, which has risen 25.6 percentage points in the last three months.