5 Things to Know Before the Market Opens Monday

U.S. military forces have conducted targeted strikes against Iranian assets in the strategic Strait of Hormuz, a move designed to disrupt Iran’s capacity to attack international shipping. This escalation follows a weekend of retaliatory actions between the U.S. and Iran.

Key considerations for investors include:

• The recent U.S.-Iran agreement, signed last month, reportedly lacks clearly defined shipping routes, contributing to the ongoing dispute over control of this vital waterway. This ambiguity creates fertile ground for miscalculation and further conflict.
• Iran’s Islamic Revolutionary Guard initially declared the strait closed, a claim promptly disputed by the U.S. military, underscoring the volatile information landscape surrounding the situation.
• The immediate impact on energy markets has been palpable, with oil prices experiencing a significant surge at the start of the week as concerns over supply disruptions intensified. This volatile environment presents both risks and opportunities for energy sector participants.
• Major indices like the S&P 500 and Nasdaq Composite are coming off a period of positive momentum, having secured their fourth winning week in the last five. However, the Dow Jones Industrial Average’s streak of weekly gains, its longest since 2024, was broken. The market’s sensitivity to geopolitical events is a key theme to watch.

The political landscape has been profoundly impacted by the unexpected passing of Senator Lindsey Graham (R-SC) at the age of 71, following a brief illness. His office confirmed the news, stating his death was attributed to aortic dissection resulting from arteriosclerotic cardiovascular disease.

Graham, a prominent figure in Republican politics and a staunch ally of President Trump, was known for his bipartisan legislative efforts. His absence is expected to create ripples across Washington, potentially complicating the advancement of several key Republican priorities. The race to fill his vacant Senate seat is already generating speculation, with names such as Representative Nancy Mace and South Carolina Governor Henry McMaster reportedly being considered.

A new legal battle has erupted in the tech industry, with Apple filing a lawsuit against OpenAI. The iPhone maker alleges that the artificial intelligence startup illicitly obtained trade secrets as it pursued its ambitions in hardware development. The lawsuit claims that OpenAI engaged in the “stealing” of information across “every level” of its operations.

This legal maneuver comes as a surprise, particularly given the existing partnership between Apple and OpenAI, established in 2024. The relationship has reportedly become strained, however, following OpenAI’s announcement of its intentions to enter the hardware market. The implications of this lawsuit extend beyond intellectual property concerns, potentially reshaping strategic alliances and competitive dynamics within the AI and hardware sectors.

In the wake of the lawsuit, Tesla CEO Elon Musk has reignited his public dispute with OpenAI CEO Sam Altman, issuing pointed remarks via social media. Altman, in turn, suggested that the company’s recent AI model advancements are the catalyst for Musk’s renewed focus on OpenAI.

The tech labor market continues to present a complex picture for job seekers, as evidenced by the ongoing impact of significant layoffs, including those at Amazon. For many employees displaced by the company’s extensive workforce reductions, re-entering the job market has proven to be a challenging endeavor.

Industry-wide layoffs in May reportedly reached their highest point since 2024, according to data from Challenger, Gray & Christmas. The consulting firm’s recent report indicates that artificial intelligence has been cited as the primary driver for corporate downsizing for four consecutive months, highlighting the transformative and disruptive power of AI across various industries. This trend suggests a strategic pivot by companies, focusing on AI integration and efficiency, which inevitably impacts traditional workforce structures.

The experience of Dorian Smith, who was laid off by Amazon in January, illustrates the sentiment among some former employees: “I always had this thought of, ‘I have Amazon on my resume, this prestigious thing.’ But when this layoff happened, it was like, ‘OK, big deal, so do 30,000 other people.'” This sentiment underscores the evolving nature of the tech employment landscape and the diminishing distinctiveness of even top-tier company affiliations in a rapidly changing market.

A bipartisan housing bill aimed at bolstering supply and affordability has officially become law, despite not receiving President Trump’s signature. The legislation, known as the 21st Century ROAD to Housing Act, was enacted automatically when the president opted not to veto it.

The bill’s passage aims to incentivize home construction, expand financing options, and regulate large investor acquisitions. While the intention is to improve housing market dynamics, experts caution that immediate reductions in home prices may not materialize. The legislation’s long-term impact on market accessibility and affordability remains a key area for observation. The president’s decision to allow the bill to become law without his signature reflects a complex interplay of political considerations and legislative priorities.