Stock futures climbed Monday morning following a weekend pause in U.S.-Iran military actions, which relieved concerns about a broader conflict in the Middle East. This easing slid crude oil prices down by more than 5%, softening inflation fears and uplifting investor mood.
Broadcom's Massive Deal and Surge in Chip Stocks
Broadcom shares rose 2.7% after announcing a memorandum of understanding with Samsung Electronics to deepen their partnership, valued above $200 billion through 2030. The collaboration targets memory chips, specifically high-bandwidth memory for Broadcom's upcoming AI accelerators, and foundry work using Samsung's cutting-edge 2-nanometer process technology. Samsung's stock in South Korea responded with a 1.8% gain.
Meanwhile, chipmakers like Sandisk and Marvell jumped 5% and 4% respectively ahead of key technology earnings reports this week. Nvidia added 1% on reports it is negotiating $250 billion financing to boost OpenAI's anticipated data center project, potentially the largest ever.
Healthcare and Energy Sectors See Divergent Moves
Forte Biosciences surged 39%, reaching $76.02 per share after Argenx announced its plan to acquire the company for $77 per share in cash, valuing the deal at approximately $2.2 billion. This premium of 86% followed Forte's release of positive Phase 1b vitiligo trial results. Argenx aims to incorporate Forte's lead drug, FB102, to strengthen its immunology pipeline.
On the flip side, energy stocks tumbled sharply as the collapse in crude dragged shares down. ExxonMobil lost 3.2%, Chevron slid 3%, and other oil producers like APA and Occidental Petroleum also faced declines. Conversely, airlines rose on expectations that cheaper oil will reduce fuel costs, with Delta Air Lines climbing 3.2% and United Airlines up 3.9%.
General Motors moved up 2% after Jefferies upgraded its rating to buy, expressing confidence in the automaker’s prospects through 2027.
