Nasdaq futures slump 290 points: 5 things to know before the market opens

• Memory-chip stocks were hardest hit: Micron fell 5.2%, Western Digital lost 6%, Seagate dropped 4.8%, and SK Hynix ADRs plunged 9.3% after its Friday Nasdaq debut
• Oil spike from Strait of Hormuz closure threatens the Fed's inflation fight and momentum trades in tech, with markets pricing at least one 25-basis-point rate hike by year-end
• Critical tests ahead include Tuesday's CPI report, major bank earnings from JPMorgan, Goldman Sachs and Morgan Stanley, plus Warsh's first monetary policy testimony before Congress

Market Summary: Nasdaq Futures Decline on Geopolitical Tensions

Key Market Movements:

Nasdaq-100 futures dropped 0.9% (290 points), while S&P 500 futures fell 0.3%. Dow Jones Industrial Average futures remained largely flat, indicating sector-specific weakness rather than broad market selloff.

Primary Catalyst:

Iran's closure of the Strait of Hormuz triggered crude oil price surges and renewed inflation concerns. The US-Iran escalation in the Gulf region disrupted this key global energy route, directly impacting market sentiment.

Hardest Hit Sector - Semiconductors:

Memory-chip stocks experienced significant premarket losses:

• Micron Technology: -5.2%
• Western Digital: -6%
• SanDisk: -6.6%
• Seagate: -4.8%
• SK Hynix ADRs: -9.3% (following Friday's Nasdaq debut)

The selloff suggests investor reassessment of AI-chip exposure despite strong long-term demand fundamentals for memory and data-center hardware.

Critical Week Ahead:

Multiple catalysts will test the market's 10% year-to-date rally:

1. Tuesday's CPI data – Could reset rate expectations if energy pressures drive inflation
2. Bank earnings – JPMorgan Chase, Goldman Sachs, and Morgan Stanley report this week
3. Fed Chair Kevin Warsh's first congressional testimony on monetary policy
4. Q2 earnings season – LSEG IBES projects 23.7% S&P 500 earnings growth year-over-year

Market Implications:

Higher oil prices threaten the Fed's inflation fight and complicate the outlook for rate-sensitive growth stocks. Markets are pricing at least one 25-basis-point rate increase by year-end. The S&P 500 remains less than 1% below its early-June record, making upcoming earnings and economic data crucial for sustaining the rally.