Wall Street closed lower on Monday as renewed tensions between the United States and Iran rattled investor sentiment, sending oil prices sharply higher while triggering a broad sell-off in technology and semiconductor stocks.
The Dow Jones Industrial Average fell 138.31 points, or 0.26%, to 52,498.70. The S&P 500 dropped 59.92 points, or 0.79%, to 7,515.47, while the Nasdaq Composite led losses, tumbling 408.43 points, or 1.55%, to 25,873.18.
Markets came under pressure after US President Donald Trump announced the reinstatement of a blockade on Iranian ports following intensified military exchanges over the weekend. The escalation lifted crude oil prices by 9.4%, fuelling concerns that higher energy costs could add to inflationary pressures and weigh on global economic growth.
Technology stocks were the biggest drag on the S&P 500, with chipmakers leading the decline. The Philadelphia Semiconductor Index underperformed as SanDisk, Marvell Technology and Intel dropped between 6.1% and 12.6%. US-listed shares of South Korea’s SK Hynix also slid 9.3% after surging more than 12% during their Nasdaq debut on Friday.
Energy stocks bucked the broader market weakness, benefiting from the rally in oil prices.
Investors are now turning their attention to a packed week of market-moving events, including congressional testimony by Federal Reserve Chair Kevin Warsh, key US inflation data and the unofficial start of the second-quarter earnings season led by major banks including JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs and Wells Fargo.
According to LSEG data, markets are pricing in at least one 25-basis-point US interest rate hike before the end of the year.
