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ConflictIran closes Strait of Hormuz; global markets slide, SK Hynix loses IPO gains
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Global markets fell sharply on Monday after Iran declared the Strait of Hormuz closed following a weekend of airstrikes between Tehran and Washington. South Korea's Kospi dropped nearly 9%, led by a 15% collapse in SK Hynix stock that erased gains from its Nasdaq debut. U.S. chipmakers including Micron, Sandisk, and Seagate also declined in premarket trading. Energy prices rose, with Brent crude near $78-79 per barrel. The U.S. and Iran are on the brink of full-on war after Iranian forces struck American facilities and President Trump launched retaliatory airstrikes. Investors are also looking ahead to a busy week of corporate earnings, including major U.S. banks, Netflix, Johnson & Johnson, and UnitedHealth. The June CPI report and testimony from new Federal Reserve Chair Kevin Warsh are scheduled for Tuesday.
Source report
Author: Cris Tolomia Source: Quartz Reading Time: 2 min
Market Overview
Global markets declined on Monday after Iran declared the Strait of Hormuz closed, following a weekend of airstrikes between Tehran and Washington.
- South Korea's Kospi fell nearly 9%, dragged by a 15% collapse in SK Hynix stock in Seoul — wiping out the gains the chipmaker logged during its Nasdaq debut on Friday.
- Nasdaq-100 futures were down about 1% ahead of the open.
- S&P 500 futures lost 0.3%.
- Dow futures were near flat.
Chipmaker Stocks Under Pressure
In premarket trading:
- Micron Technology fell 5.2%
- Sandisk dropped 6.3%
- Seagate Technology shed 4%
- Advanced Micro Devices and Intel also moved lower
- SK Hynix's U.S.-listed shares were down roughly 9%
Geopolitical Tensions Escalate
The U.S. and Iran returned to the brink of full-on war over the weekend. Iranian forces hit American facilities across several Gulf nations and announced the Strait of Hormuz was closed again.
President Donald Trump pushed back on that assertion Sunday, telling reporters that commercial shipping continued to move through the waterway. The exchange followed his decision Saturday to launch airstrikes on Iran in retaliation for an Iranian strike on a merchant ship in the strait.
Energy Prices Rise
Escalating tensions pushed energy prices higher:
- Brent crude traded near $78–$79 per barrel, up close to 3%
- WTI reached about $73.49, posting a comparable gain
European and Asian Markets
- Pan-European Stoxx 600 edged down 0.1% in Monday morning trading, with chip-related names tracking losses seen earlier in Asia and energy shares bucking the trend with gains.
- Tokyo's Nikkei 225 retreated 1.92%
- CSI 300 in mainland China finished 1.79% lower
Corporate Earnings Ahead
Investors are looking ahead to a busy stretch of corporate reporting. A roster of 28 S&P 500 names is scheduled to post results this week, headlined by:
- JPMorgan Chase
- Goldman Sachs
- Morgan Stanley
- Bank of America
- Citigroup
- Wells Fargo
Also on the calendar:
- Netflix
- Johnson & Johnson
- UnitedHealth
Key Economic Data
- The June consumer price index report is due Tuesday morning.
- New Federal Reserve Chair Kevin Warsh is also scheduled to testify before Congress on Tuesday.
Image credit: Michael M. Santiago / Getty Images
Source
Yahoo FinanceWestern
Part of this Story
Nikkei Hits Record High on Hopes of Strait of Hormuz Reopening