Wall Street Slides on AI and Middle East Concerns

2026-07-13 20:10 By Isabela Couto 1 min. read

US stock indices closed lower on Monday amid weakness in chipmakers and a deteriorating macroeconomic backdrop.

The S&P 500 fell 0.8%, the Nasdaq 100 lost 1.9%, and the Dow dropped 138 points.

Chipmakers sank on persistent concerns that AI hyperscalers will be forced to scale back spending on AI infrastructure.

SK Hynix ADRs fell 8.6% after surging 13% in their debut on Friday, as a Korean brokerage warned the company could miss its next earnings expectations.

Nvidia shed 3.5%, Broadcom was down 4%, AMD retreated 4.2%, and Intel fell 6.1%, while memory producers Sandisk and Micron lost 12.6% and 4.3%, respectively.

Stocks in other sectors also declined alongside US Treasuries after President Trump said the US would reinstate the blockade of Iranian ships in the Strait of Hormuz, escalating the conflict and raising the risk of energy-driven inflation.

Major banks fell ahead of this week's earnings, with JPMorgan down 0.6%, Bank of America falling 0.3%, and Goldman Sachs losing 0.9%.



News Stream
US Futures Edge Lower on Middle East Jitters
US stock futures edged lower on Tuesday as investors assessed escalating tensions in the Middle East after President Donald Trump reinstated a blockade on Iranian vessels transiting the Strait of Hormuz. The move sent oil prices sharply higher and weighed on equities, fueling concerns that central banks may need to raise interest rates to contain renewed inflationary pressures. Investors also awaited key US inflation data and Fed Chair Kevin Warsh’s testimony before Congress later on Tuesday. On the corporate front, earnings from JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup, and Wells Fargo are due later today. In regular trading on Monday, the Dow fell 0.26%, the S&P 500 declined 0.79%, and the Nasdaq Composite dropped 1.55%. Chipmakers led the losses amid persistent concerns that AI hyperscalers could scale back spending on AI infrastructure, with Micron (-4.3%), Nvidia (-3.5%), Sandisk (-12.6%), AMD (-4.2%), and Intel (-6.1%) all ending lower.
2026-07-13
The Dow Jones Index Closes 0.26% Lower
The Dow Jones Index decreased 138 points or 0.26 percent on Monday to close at 52499 points. The decline was led by Nvidia (-3.24%), Boeing (-2.94%) and Honeywell International (-2.29%). On the upside, the strongest performers were Salesforce (4.47%), Chevron (3.21%) and Visa (2.28%).
2026-07-13
Wall Street Slides on AI and Middle East Concerns
US stock indices closed lower on Monday amid weakness in chipmakers and a deteriorating macroeconomic backdrop. The S&P 500 fell 0.8%, the Nasdaq 100 lost 1.9%, and the Dow dropped 138 points. Chipmakers sank on persistent concerns that AI hyperscalers will be forced to scale back spending on AI infrastructure. SK Hynix ADRs fell 8.6% after surging 13% in their debut on Friday, as a Korean brokerage warned the company could miss its next earnings expectations. Nvidia shed 3.5%, Broadcom was down 4%, AMD retreated 4.2%, and Intel fell 6.1%, while memory producers Sandisk and Micron lost 12.6% and 4.3%, respectively. Stocks in other sectors also declined alongside US Treasuries after President Trump said the US would reinstate the blockade of Iranian ships in the Strait of Hormuz, escalating the conflict and raising the risk of energy-driven inflation. Major banks fell ahead of this week's earnings, with JPMorgan down 0.6%, Bank of America falling 0.3%, and Goldman Sachs losing 0.9%.
2026-07-13