Stocks Drift After Three-Day Rally; SpaceX Surges: Markets Wrap

(Bloomberg) — US stocks paused after a three-day rally with investors shifting their focus to a raft of central bank decisions this week. SpaceX continued to surge, on track for a more than 50% jump since going public.

S&P 500 futures were little changed after the benchmark notched a gain of about 2% since Thursday. Nasdaq 100 Index contracts edged higher. SpaceX rose 11% in early trading. The dollar slipped and Treasuries rose. West Texas Intermediate crude fell 3% to $78 a barrel as strategists cut their oil price forecasts.

The focus on Wall Street is now turning to the first Federal Reserve meeting under Kevin Warsh. While the central bank is expected to hold interest rates steady on Wednesday, the spotlight will be on how Warsh navigates the post-meeting press conference and the outlook for inflation.

“All eyes will remain on the Fed for now and how Kevin Warsh will handle the competing pressures from rising inflation and the prospect of lower energy inflation once the Strait of Hormuz reopens,” said Joachim Klement at Panmure Liberum.

The announcement by President Donald Trump of a peace deal with Iran has opened the floodgates for investors to start to deploy the roughly $8 trillion to $9 trillion sitting in money market funds, according to Rick Rieder, BlackRock Inc.’s global fixed income chief investment officer. SpaceX’s initial public offering had already forced investors to make room in portfolios, he added.

Meanwhile, oil headed for its longest run of declines this year. Both Morgan Stanley and Goldman Sachs Group Inc. have cut price outlooks for the coming quarters, with the latter now assuming Persian Gulf exports will reach pre-war levels by the end of July, a month earlier than previously forecast.

Qatar is planning to rapidly boost liquefied natural gas production once the Strait of Hormuz reopens, aiming to restore most of its export capacity within two months.

Oil’s drop to the lowest since early March has erased the bulk of the gains seen during the Mideast conflict, easing inflationary pressures just as policymakers assess interest rates.

Corporate Highlights:

SpaceX has formally agreed to take over Cursor in a deal that values the AI coding startup at $60 billion, cementing a key part of Elon Musk’s efforts to catch up with rivals on coding tools. Robinhood Markets shares rose in 3% premarket trading after it said it is reducing its full-time employee workforce by 10%, and also closing a small number of open roles. UniCredit shares gained as much as 3.7% to a four-month high, after BofA Global Research raised its price target to a new Street high. The Bank of Japan and Reserve Bank of Australia kicked off a slate of decisions for the week. The BOJ raised its benchmark rate by a quarter percentage point to 1%, the highest level since 1995. The yen pared gains against the dollar while local bonds fell. The RBA kept its key interest rate unchanged for the first time this year.

The Bank of England and Swiss National Bank are also widely anticipated to stand pat this week. Their decisions come after the European Central Bank last week raised rates for the first time in almost three years, with President Christine Lagarde warning inflation triggered by the Iran war is widening beyond just energy.

Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 7:21 a.m. New York time Nasdaq 100 futures rose 0.3% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 rose 0.4% The MSCI World Index rose 1.6% Currencies

The Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1606 The British pound was little changed at $1.3424 The Japanese yen was little changed at 160.32 per dollar Cryptocurrencies

Bitcoin was little changed at $66,515.85 Ether fell 1.1% to $1,795.84 Bonds

The yield on 10-year Treasuries declined three basis points to 4.44% Germany’s 10-year yield declined three basis points to 2.93% Britain’s 10-year yield declined three basis points to 4.78% Commodities

West Texas Intermediate crude fell 3% to $78.30 a barrel Spot gold rose 0.7% to $4,339.89 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Shikhar Balwani.

©2026 Bloomberg L.P.