Dow gains, S&P 500 and Nasdaq slip as oil jumps on US-Iran hostilities
US stocks opened mixed on Monday, July 13, as investors weighed renewed hostilities between the United States and Iran, rising oil prices, and the start of a crucial week featuring key inflation data and quarterly earnings.
At the opening bell, the Dow Jones Industrial Average rose about 0.2%, while the S&P 500 slipped 0.2% and the Nasdaq Composite fell 0.7%, with technology and AI-linked stocks coming under pressure. Chipmakers tracked losses seen in international peers as investor sentiment weakened.
SK Hynix shares plunged 15.4% in Seoul on Monday, marking their biggest-ever one-day decline, as investors booked profits despite the chipmaker’s strong Nasdaq debut. The stock had surged 13% on its Wall Street debut on Friday, reflecting robust demand for AI-linked semiconductor stocks.
Markets remained on edge after fresh US and Iranian strikes over the weekend heightened geopolitical tensions in the West Asia, pushing crude oil prices higher. Investors are also awaiting this week’s Consumer Price Index (CPI) and Producer Price Index (PPI) reports, along with the unofficial start of the earnings season led by major US banks, for clues on the Federal Reserve’s interest rate outlook and corporate performance.
Stock futures slip as West Asia tensions lift crude prices
US stock futures traded lower on Monday, July 13, as renewed hostilities between the United States and Iran rattled investor sentiment.
Futures linked to the Dow Jones Industrial Average were little changed, while S&P 500 futures fell around 0.4%. Nasdaq-100 futures led the declines, dropping about 1.01% as semiconductor stocks came under pressure in premarket trading.
Markets turned cautious after the US and Iran exchanged fresh strikes over the weekend. Tehran targeted US facilities in several Gulf countries and declared the Strait of Hormuz closed, although US President Donald Trump disputed the claim, saying the key shipping route remained open to commercial traffic.
Oil prices surge on West Asia tensions
Escalating geopolitical tensions sent crude prices sharply higher in early trade. West Texas Intermediate (WTI) crude rose about 3% to $73.83 a barrel after touching an overnight high of $75.08, while Brent crude gained around 3% to $78.52 a barrel, after briefly climbing to $79.80.
Chipmakers lead losses
Semiconductor stocks were among the biggest decliners in premarket trading.
US-listed shares of SK Hynix dropped 8%, giving up part of Friday’s gains following the South Korean chipmaker’s Nasdaq debut. Micron Technology and Sandisk each fell about 4%, while Seagate Technology lost 3%. Advanced Micro Devices (AMD) and Intel were also down around 2%.
Earnings season in focus
Investors are also gearing up for the unofficial start of the second-quarter earnings season, with major US banks set to report results later this week.
JPMorgan Chase, Goldman Sachs, Bank of America and other financial institutions are scheduled to announce quarterly earnings. Market participants will also watch Taiwan Semiconductor Manufacturing Co. (TSMC) for updates on AI-related demand, while Netflix and UnitedHealth Group are among the other major companies due to report this week.