Wall Street closed lower on Monday as President Trump’s decision to reinstate a naval blockade on Iranian shipping through the Strait of Hormuz sent oil prices sharply higher and rattled investors already nervous about stretched valuations in the technology sector. All three major indexes finished in the red, with semiconductor stocks leading the retreat while energy shares provided some ballast.
What Moved Markets
The Dow Jones Industrial Average fell 138 points, or 0.26%, to close at 52,498.64. The S&P 500 dropped 60.05 points, or 0.79%, to 7,515.34, and the Nasdaq Composite posted the steepest decline, sliding 408.43 points, or 1.55%, to 25,873.18.
The selloff traced back to renewed tension in the Middle East. Trump said the US would reimpose a blockade on Iranian shipping through the Strait of Hormuz after ceasefire negotiations broke down, rattling a waterway through which roughly a fifth of the world’s oil supply passes. Crude prices jumped about 7.8% to near $81.92 a barrel on the news, reviving inflation worries just a day ahead of Tuesday’s closely watched June CPI report. Energy was the only S&P sector to post a sizable gain, up roughly 3%, helping cushion the Dow’s decline even as technology shares, down more than 2%, dragged the Nasdaq lower. Chipmakers bore the brunt of the selling after a recent rally left the group vulnerable to profit-taking, with steep losses in South Korea’s chip sector spilling into US trading.
Notable Movers
Micron Technology (MU) fell 4.6% as traders locked in gains following a sharp run-up in semiconductor shares, part of the broader pullback across the chip sector.
Artivion (AORT) plunged 43.8% to $24.10 after the medical device maker reported disappointing quarterly results.
SanDisk (SNDK) dropped roughly 13% even after Evercore ISI raised its price target on the stock, as investors continued to digest recent volatility in memory-chip names.
Amazon.com (AMZN) bucked the downturn, adding 1.5% to close at $249.04.
Looking Ahead
Investors now turn to a packed economic and earnings calendar. June’s Consumer Price Index arrives Tuesday morning and will be parsed closely for signs of tariff- and oil-driven inflation pressure, followed by the Producer Price Index on Wednesday. New Federal Reserve Chair Kevin Warsh is also set to deliver his first monetary policy testimony before Congress this week, a debut that could move markets if he signals any shift in the central bank’s approach to interest rates. Meanwhile, second-quarter earnings season kicks into gear, with dozens of companies reporting in the days ahead. With oil back in focus and geopolitical risk elevated, investors should watch for further developments around the Strait of Hormuz alongside the inflation data, both of which are likely to set the tone for trading through the rest of the week.