A rough week on Wall Street bleeds into Monday as Middle East tensions push oil higher and keep traders on edge.
Stock futures opened mixed Monday after all three major U.S. indexes closed lower last week. S&P 500 futures ticked up 0.2%, Nasdaq-100 futures gained 0.5%, and Dow futures sat flat, down just 14 points.
Key Details
Last week wasn’t kind to stocks. The S&P 500 fell 1.6%, the Nasdaq Composite dropped 2.9%, and the Dow slipped 0.9%. Chip stocks took the hardest hit, with the VanEck Semiconductor ETF (SMH) down nearly 9% for its third losing week in four. BTIG’s Jonathan Krinsky says a real bottom for semis still looks premature.
Overseas, the U.S. military carried out its ninth straight night of strikes on Iran, targeting Tehran’s ability to threaten shipping through the Strait of Hormuz. U.S. Central Command confirmed a third American service member has been killed in the fighting, with unidentified remains also found near a July 17 attack site in Jordan.
Asian markets reflected the unease on Monday. South Korea’s Kospi dropped 0.74% at the open, Australia’s ASX 200 rose 0.34%, and Japan stayed closed for a holiday.
Market Reaction
Oil jumped on the escalation. WTI crude rose 3% to above $85 a barrel, while Brent crude climbed 3% to top $91.
Rising oil prices and a widening conflict add fresh volatility just as earnings season heats up. Alphabet and Tesla report on Wednesday, with Intel following on Thursday after a rough 13% drop last week.
Traders should keep an eye on any further escalation in the Middle East, oil’s next move above $90, and how Big Tech earnings land against a shaky chip sector.
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Source: CNBS
