Expect "Messy" U.S.-Iran Headlines to Leave Lasting Volatility as Tech Finds Footing
Schwab Network
|
July 09, 2026 at 01:46 PM UTC
Bullish
80% Confidence
Watch on YouTube
Key Points
- US-Iran tensions are considered 'messy' but crude oil's muted reaction suggests the market isn't pricing in significant risk.
- The market's attention is shifting towards earnings, with AI chip stocks (Micron, SanDisk, Western Digital, Seagate, Nvidia, Broadcom) showing strength despite some fatigue in the broader AI trade, while software (Microsoft, Meta Platforms) is down pre-market.
- Historically strong jobless claims (215K initial claims) allow the Fed to maintain its focus on inflation, with lower crude oil prices (from $102 to $72-$73) potentially aiding in bringing down headline CPI.
AI Summary
The market is navigating 'messy' US-Iran geopolitical headlines, but crude oil prices are not showing extreme risk premium, allowing the focus to shift to earnings. While AI chip stocks are strong, some software names are seeing fatigue. Strong jobless claims keep the Fed focused on inflation, with falling crude prices potentially easing CPI.
Model Analysis Breakdown
| Model | Sentiment | Confidence |
|---|---|---|
| Gemini 2.5 Flash | Bullish | 80% |
| Consensus | Bullish | 80% |