U.S.-Iran Tensions Trigger Stock Market Decline Amid Rising Oil Prices

Escalating tensions between the U.S. and Iran in the Gulf region have resulted in a drop in both the S&P 500 and Nasdaq, fueled by a spike in oil prices. Iranian closure of the Strait of Hormuz heightened fears, affecting chip stocks and raising concerns over potential inflation risks.

Tensions between the U.S. and Iran escalated, causing declines in the S&P 500 and Nasdaq as oil prices surged. The Strait of Hormuz's closure by Iran has alarmed investors, offsetting gains in oil prices.

Semiconductor stocks were among the hardest hit, with Micron Technology and Sandisk suffering significant losses. A strong showing by IBM and UnitedHealth helped stabilize the Dow slightly.

With the second-quarter earnings season kicking off, investors are closely monitoring the market's ability to withstand geopolitical risks, with several Federal Reserve policy updates and economic reports on the horizon.