SpaceX launched onto Wall Street with a bang, its stock surging 19.2% in its first day of trading. That gave Elon Musk's rocket company a total value of $US2.1 trillion ($3 trillion) — making it bigger than Exxon Mobil, Bank of America and Coca-Cola put together.

The company, which also owns the artificial intelligence outfit xAI, is now one of the most valuable on the planet. The debut suggests there's still plenty of appetite for AI-related investments, even as some critics call the industry a bubble.

Back home, the Australian sharemarket is set for a shaky start. ASX futures point to a gain of 39 points, or 0.4%, at the open — but those numbers were locked in before the latest escalation in the Middle East. Israel launched airstrikes on Lebanon, and Donald Trump is fuming.

Trump told news site Axios that Israeli Prime Minister Benjamin Netanyahu had "no f---ing judgement" and had put peace negotiations at risk. "Why did Bibi have to do a f---ing attack? I was so pissed off," Trump said, using the nickname for the Israeli leader.

The US President had earlier called off his own threat to strike Iran, saying a potential deal to end the war may be imminent. A peace agreement could reopen the Strait of Hormuz, allowing oil tankers to deliver crude from the Persian Gulf again. Its near closure since the war began has sent Brent crude from roughly $US70 per barrel to as high as $US87.33 — though prices dropped 3.4% on Friday after Trump's comments.

Financial markets have rallied before on hopes of an end to the conflict, only to be disappointed each time. So investors are cautious.

On Wall Street, the S&P 500 rose 0.5% to 7,431.46, its 10th winning week in the last 11. The Dow Jones Industrial Average climbed 353 points, or 0.7%, to 51,202.26, and the Nasdaq composite gained 0.3% to 25,888.84.

AI stocks were mixed after a wild week. Micron Technology dropped 1.4%, while CoreWeave jumped 5% on news it will join the Nasdaq 100 index later this month.

Adobe fell 6.8% despite reporting stronger profit and revenue than expected. Its stock has lost nearly 42% this year, and its chief financial officer is leaving on Monday. The company is already searching for a new CEO to replace Shantanu Narayen, who announced in March he is stepping aside after 18 years.

In the bond market, Treasury yields rose, with the 10-year note climbing to 4.48% from 4.45%. Higher yields can slow the economy and hit expensive stocks, including AI names.

A survey from the University of Michigan showed US consumer sentiment improved more than expected, helped by easing petrol prices early in the month.

Overseas markets rallied, catching up to Thursday's big Wall Street gains. South Korea's Kospi jumped 4.6%, trimming losses from earlier this month. Tokyo's Nikkei 225 rose 2.8%, and France's CAC 40 climbed 1.8%.

For Australian investors, the big question is whether the ASX can hold its ground if oil spikes again on Middle East news. The futures suggest a positive open, but as we've learned, that can change in a heartbeat.