Dow opens higher as chip stocks slide, S&P 500 dips on Iran tensions

• Oil prices jumped roughly 3% (WTI to $73.83, Brent to $78.52) after Iran claimed to close the Strait of Hormuz, though President Trump disputed this, raising inflation concerns ahead of Tuesday's CPI report
• Semiconductor stocks fell sharply following SK Hynix's Nasdaq debut, with Micron down 6.4% and Western Digital, Seagate falling 4-7%, spreading weakness across the chip sector
• Major banks including JPMorgan, Goldman Sachs, and Morgan Stanley report earnings this week, with S&P 500 companies expected to post 23.7% profit growth for Q2 amid elevated market expectations

Market Summary: Mixed Open Amid Geopolitical Tensions and Chip Sector Weakness

Market Performance (July 13, 2026 Open):

US markets opened mixed with the Dow Jones Industrial Average rising 122 points (+0.23%), while the S&P 500 fell 0.17% and the Nasdaq Composite declined 0.61%. Technology stocks led losses, with the S&P 500 trading less than 1% below its early-June record high despite the pullback.

Geopolitical Tensions:

Escalating US-Iran conflict drove oil prices sharply higher after Tehran claimed to close the Strait of Hormuz, a critical global energy shipping route. West Texas Intermediate crude surged approximately 3% to $73.83/barrel (touching $75.08 overnight), while Brent crude gained 3% to $78.52 (reaching $79.80). This undermines last month's interim agreement and raises inflation concerns ahead of key US economic data.

Semiconductor Sector Selloff:

Chip stocks faced broad pressure following SK Hynix's Nasdaq debut. Major declines included Micron Technology (-6.4%), Western Digital, Seagate Technology, and Sandisk (each down 4-7%), plus weakness in AMD and Intel. The selloff reflects concerns about memory pricing and high-beta growth exposure ahead of earnings.

Key Catalysts This Week:

• Major bank earnings: JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, Wells Fargo
• Additional corporate reports: Netflix, Johnson & Johnson, General Electric, UnitedHealth
• Tuesday: US Consumer Price Index (CPI) data and Fed Chair Kevin Warsh's first monetary policy testimony before Congress
• S&P 500 companies expected to report 23.7% Q2 earnings growth year-over-year (per LSEG I/B/E/S)

Trading Recommendations:

Buy energy sector (XLE) on geopolitical tailwinds; sell semiconductors (SOXX) amid sector weakness and upcoming volatility.