Tech Stocks Slide as Oil Climbs on US-Iran Strikes: Markets Wrap
(Bloomberg) — A selloff in tech giants sent stocks lower, with the market also falling as oil jumped after clashes over the Strait of Hormuz raised concerns about a disruption in energy supplies that could fuel inflation.
Those worries halted a back-to-back advance in the S&P 500 while the Nasdaq 100 dropped 1.5%. An AI-fueled equity rout in South Korea spilled over chipmakers around the world, driving US-listed shares of SK Hynix Inc. down 7%. Brent crude approached $80, lifting bond yields on speculation the Federal Reserve will need to boost rates to combat higher prices.
The US and Iran exchanged fresh strikes overnight into Monday, prolonging a spate of tit-for-tat attacks at a time when the two nations offer conflicting statements over whether Hormuz is open to shipping. President Donald Trump asserted the US would “keep the strait” and “probably run it” while seeking payment for doing so. He did not lay out a plan for doing so.
The flare-up in geopolitical risks comes at a time when Wall Street is getting ready for the start of the earnings season, with markets growing uneasy over whether the enormous sums being poured into artificial intelligence will pay off.
“The ongoing swings in semiconductors has made it difficult for tech to mount a sustained push to the upside, and while the market has so far taken the breakdown of the US-Iran ceasefire in stride, escalating hostilities and rising oil prices won’t help the bullish cause,” said Chris Larkin at E*Trade from Morgan Stanley.
Corporate Highlights:
Meta Platforms Inc. has committed to spending an additional $40 billion on its sprawling data center campus in Louisiana, pushing its total expected investment beyond $250 billion for the site as it continues to grow its artificial-intelligence computing footprint. Intel Corp. is spending €5 billion ($5.7 billion) to expand its plant in Ireland, as the chipmaker attempts to regain its manufacturing dominance for the AI boom. Taiwan Semiconductor Manufacturing Co. reported a 36% jump in quarterly sales, meeting elevated expectations while signaling global demand for AI computing remains intact. Walt Disney Co. shares have been in a slump for years, but Wells Fargo Securities said there’s one possible move that could reverse the trend: ditching its streaming-video business. Stellantis NV’s shipments climbed 10% in the second quarter fueled by growth in North America, as the maker of Jeep sport utility vehicles and Ram pickup trucks pushes on with a turnaround plan. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.3% as of 9:47 a.m. New York time The Nasdaq 100 fell 1.5% The Dow Jones Industrial Average rose 0.1% The Stoxx Europe 600 was little changed The MSCI World Index fell 0.3% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1421 The British pound fell 0.1% to $1.3388 The Japanese yen fell 0.3% to 162.19 per dollar Cryptocurrencies
Bitcoin fell 2.9% to $62,284.32 Ether fell 3% to $1,766.49 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.58% Germany’s 10-year yield advanced three basis points to 3.09% Britain’s 10-year yield advanced seven basis points to 4.94% Commodities
West Texas Intermediate crude rose 3.6% to $74 a barrel Spot gold fell 1.5% to $4,056.12 an ounce ©2026 Bloomberg L.P.
