PiCK
Wall Street Ends Mixed as Renewed U.S.-Iran Tensions Weigh; Nasdaq Rebounds
Summary
- Renewed military tensions between the U.S. and Iran left Wall Street's three major indexes mixed at the close.
- Gains in large technology stocks lifted the Nasdaq and the Philadelphia Semiconductor Index, leading tech shares higher.
- The release of the FOMC minutes fueled expectations for rate hikes and deepened geopolitical unease, weighing on investor sentiment.
Forecast Trend Report by Period
Major U.S. stock indexes ended mixed on July 8 as military tensions between the U.S. and Iran flared again.
The Dow Jones Industrial Average fell 576.76 points, or 1.09%, to 52,348.39 on the New York Stock Exchange. The S&P 500 dropped 21.14 points, or 0.28%, to 7,482.71, while the Nasdaq Composite rose 51.96 points, or 0.20%, to 25,870.65.
Market anxiety intensified after military clashes between the U.S. and Iran resumed and President Donald Trump mentioned the possibility of additional strikes. Stocks trimmed losses later in the day after Trump said he did not think a war with Iran would "start again." The Nasdaq turned higher near the close.
"The renewed tensions in the Middle East have disrupted a market narrative that had been growing increasingly complacent," Daniela Sabin Hathorn of Capital.com said. Investors are now being forced to reassess geopolitical risk.
Gains in large technology stocks helped the Nasdaq rebound. Broadcom jumped 4.8% after news that Apple had expanded a $30 billion semiconductor supply agreement with the company.
Nvidia rose 3.7% after reports that Chinese authorities would partially allow domestic artificial intelligence companies to buy H200 chips. The Philadelphia Semiconductor Index added 2.2%.
Travel and consumer-related shares, including United Airlines and Delta Air Lines, were weaker. SpaceX fell 0.8%, hitting its lowest level since listing.
Investor sentiment remained fragile amid concern that the ceasefire between the U.S. and Iran could break down and geopolitical risks surrounding the Strait of Hormuz could intensify again. Pressure also came from minutes of the Federal Open Market Committee's June meeting, released in the afternoon, which reaffirmed inflation concerns and strengthened expectations for further rate increases.
According to CME FedWatch, the interest-rate futures market raised the probability of at least a 0.25 percentage-point Federal Reserve rate increase in July to 30.5% from 26.7% a day earlier. The odds of a rate increase at the September meeting also rose to 65.7% from 61.9%.
The Cboe Volatility Index, or VIX, rose 0.77 point, or 4.77%, to 16.9.
Ko Jeong-sam, Hankyung.com reporter, jsk@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.