Wall Street futures are pointing to a green open on Monday, as markets enter the last trading week of June, a shortened week ahead of the July 4 holiday, with exchanges closing Thursday.

Dow futures are up roughly 179 points (+0.34%), the S&P 500 is gaining 0.63%, and the Nasdaq is leading with a 0.72% advance, extending last week's recovery in tech stocks.

Google Enters the Dow

The headline event of the day is Alphabet (GOOGL), Google's parent company, officially joining the Dow Jones Industrial Average, replacing Verizon (VZ), which exits the index. The decision by S&P Dow Jones Indices, announced June 23, reflects the growing weight of tech giants in the 30-stock benchmark, adding exposure to digital advertising, cloud computing, and AI alongside existing members Apple, Microsoft, Amazon, and Nvidia.

Meanwhile, Honeywell International (HON) remains in the index under a new name, Honeywell Technologies, following a spin-off effective today.

Micron Continues to Drive AI Sentiment

Last week ended on a positive note thanks to Micron's (MU) blockbuster quarterly report. The memory chip maker posted revenue of $41.46 billion, well above the ~$35.8 billion consensus, and adjusted EPS of $25.11, roughly $5 ahead of analyst estimates. The results reversed a sharp AI sell-off that had pulled Micron down 13% within days, triggering a 15%–18% surge in after-hours trading.

The report reinforced confidence that demand for HBM (High Bandwidth Memory) remains robust and that supply chains will stay tight through the rest of the year.

Data-Heavy Week Ahead

Monday's calendar is light, but the rest of the week brings major economic releases:

  • Tuesday: S&P Case-Shiller home price index (April), Chicago PMI (June), Conference Board Consumer Confidence, and JOLTS job openings (May)
  • Wednesday: ADP private payrolls, ISM manufacturing, and a possible speech by Fed Chair Kevin Warsh
  • Thursday: The main event, the June employment report, including nonfarm payrolls, unemployment rate, and average hourly earnings. Markets close early.

Trading will be closed Friday for the July 4 observance.

Inflation and Geopolitics in the Background

Last week's hotter-than-expected PCE print revived chatter about a potential rate hike later this year. Separately, US-Iran ceasefire talks continue, with investors monitoring the impact on oil prices.

The Bottom Line

Markets are opening on a positive note this morning, with a major structural change to the Dow and Micron's outsized quarter continuing to fuel AI optimism. The shortened week ahead is packed with data that could set the tone for the summer months.