Traders work at the New York Stock Exchange on July 10, 2026.
NYSE
The S&P 500 slid to session lows on Monday after President Donald Trump announced he was reinstating what he called a blockade on Iranian shipping through the Strait of Hormuz.
The broad market index lost 0.4%, while the Nasdaq Composite was down 1%. The Dow Jones Industrial Average traded down 56 points, or 0.1%.
“We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving,” Trump said in a post on Truth Social. “The U.S.A. will be, from this point forward, known as ‘THE GUARDIAN OF THE HORMUZ STRAIT,’ but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World.”
Oil prices jumped following his announcement, with U.S. West Texas Intermediate futures rising more than 5% to top $75. Brent crude futures, the international benchmark, advanced 5.3% to $80 per barrel.
The latest escalation came after Iran and the U.S. exchanged airstrikes over the weekend. Tehran targeted U.S. facilities in several Gulf countries and declared the Strait of Hormuz closed, though Trump disputed that claim on Sunday, saying the key shipping lane remained open to commercial traffic.
Trump on Saturday ordered airstrikes on Iran after Tehran attacked a commercial vessel transiting the strait.
Semiconductor names were under pressure. U.S.-listed shares of SK Hynix lost 7% following the South Korean chipmaker’s Nasdaq debut on Friday, when it soared 13%.
Shares in Micron Technology were down 6%, while shares of Sandisk shed 10%. Seagate Technology fell 6%. Elsewhere, Advanced Micro Devices was 4% lower, along with Intel.
Additionally, shares of major U.S. banks — namely, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo — were lower ahead of their earnings results this week. Quarterly results from Netflix, Johnson & Johnson and UnitedHealth are also on deck.
Expectations for the season are high. On average, analysts estimate that second-quarter S&P 500 profits grew by more than 23% year over year, per FactSet.
One sector to watch, according to Raymond James CIO Larry Adam, is tech. Specifically, whether AI can keep boosting earnings in the sector.
“Despite concerns that hyperscalers may start to moderate AI-related capital spending, we expect capex plans to be reaffirmed and to rise through 2028. Why? Because there is tangible evidence that businesses benefit from AI adoption. Mentions of AI across all 11 sectors are up 98% YoY, reaching new highs,” Adam wrote to clients.
On Tuesday, the June CPI report is due out in the morning. Economists polled by Dow Jones are expecting the headline reading to show a 0.2% decline on the month but a year-over-year increase of 3.8%.
Federal Reserve Chairman Kevin Warsh is also slated to appear before the House Financial Services Committee Tuesday, offering testimony on the central bank’s semi-annual monetary policy report.