The S&P 500 closed Monday at 7,554, up 1.65% and near its all-time high of 7,620. But premarket futures are drifting this morning as traders shift their focus from last week's US-Iran deal to the Federal Reserve — specifically, Kevin Warsh's first policy meeting as chair.

The Fed is widely expected to hold rates steady. The question is what Warsh signals about the path ahead, as rate-hike talk has been heating up in recent weeks. Investors will parse every word of the post-meeting statement for clues on the timing of any tightening.

Semiconductors steal the show

Monday was a blockbuster day for chip stocks. Micron (MU) jumped 10.84%, Western Digital (WDC) surged 16.1% — the S&P 500's biggest gainer — and Seagate (STX) added 9.43%. The memory and storage rally reflects growing conviction that AI workloads are driving structural demand.

AMD climbed 6.98%, Nvidia (NVDA) rose 3.54% as it joined Wall Street's AI funding wave, and Qualcomm (QCOM) gained 4.29% on reports it's in talks to acquire AI chip startup Tenstorrent.

SpaceX extends its post-debut rally

SPCX jumped another 19.6%, bringing its gain since debut to over 40%. Yahoo Finance reports SpaceX has overtaken Palantir (PLTR) as the priciest stock in megacap tech by valuation multiple. Separately, SpaceX said it will publish financial results on its website and on X, bypassing traditional wire services — an unconventional move that could signal a new era of corporate disclosure.

Fox to acquire Roku in $22B streaming deal

Fox (FOX) announced a $22 billion deal to acquire streaming platform Roku, marking a major consolidation play in the streaming space. The deal gives Fox a direct-to-consumer foothold. FOX shares dropped over 15% on the news, as investors digest the price tag and integration risks. Roku shares surged in after-hours trading.

Busy options week ahead

Traders are bracing for an unusually heavy options week. June's triple witching — one of the most active expiration events of the year — falls this Friday, coinciding with the launch of SpaceX options contracts. Volatility is expected to pick up toward the end of the week.

Iran deal: a 60-day Strait of Hormuz truce

The US and Iran agreed that the Strait of Hormuz will be toll-free for 60 days, but deep disagreements remain over the long term. The US Strategic Petroleum Reserve has fallen to its lowest level since the early 1980s, and analysts warn that normalizing oil markets could take years even with a peace framework in place.

The bottom line

All roads lead to the Fed today. The tape is strong — the S&P 500 is within striking distance of record highs, semiconductors are on fire, and M&A is heating up. But the rate decision and Warsh's tone will set the near-term direction. Until then, expect cautious trading and a wait-and-see posture.