Market Overview

Reuters analyst Pranav Kashyap (published 13‑07‑2026, 02:26 pm) highlighted three primary drivers for global markets: a sharp oil rally sparked by renewed U.S.–Iran hostilities, a pronounced sell‑off in Asian semiconductor equities, and an upcoming wave of second‑quarter earnings.

Geopolitical Flashpoint and Oil Reaction

U.S. Central Command announced a fresh round of strikes against dozens of Iranian targets aimed at limiting Tehran’s ability to threaten shipping in the Strait of Hormuz. President Donald Trump publicly asserted that the strait remained open to commercial traffic, contradicting Iranian claims of closure. The strait carries roughly 20 % of the world’s seaborne oil, making any prolonged disruption a major inflationary risk.

In European trade, Brent crude (LCO) jumped 4.8 % to $79.65 per barrel, while U.S. West Texas Intermediate (CL) rose 5 % to $74.98 per barrel. Both benchmarks had already gained more than 4 % the previous week as tensions escalated. The oil surge lifted the broader commodities index (+2.21 % for Brent, +2.10 % for WTI) and fed concerns that higher energy costs could feed into broader consumer‑price inflation.

Futures and Index Movements

At 04:53 ET (08:53 GMT), U.S. equity futures showed mixed reactions: S&P 500 futures slipped 0.3 %, Nasdaq‑100 futures fell 1 %, while Dow Jones futures edged up 0.03 %. End‑of‑day index snapshots later in the article recorded modest gains for the major U.S. indices – NDX +0.33 %, US500 +0.42 %, DJI +0.29 %.

Semiconductor Sector Turbulence

Asian chip stocks experienced a sharp correction. South Korean memory‑chip leader SK Hynix plunged nearly 14 %, dragging the KOSPI index down more than 5 % and prompting a brief trading halt by the Korea Exchange. The ticker for SK Hynix (000660) was noted at ‑15.37 %. The decline was attributed to profit‑taking and heightened caution ahead of the earnings season rather than a fundamental weakening of AI‑chip demand.

Conversely, Taiwan’s Taiwan Semiconductor Manufacturing Co. (TSMC) reported a robust second‑quarter performance, with revenue rising 36 % year‑on‑year to T$1.27 trillion. The company emphasized that demand for AI‑related chips remained strong, illustrating a divergence between short‑term market sentiment and underlying sector fundamentals.

Earnings Season Outlook

Investors are gearing up for a packed week of Q2 earnings, which will test whether AI‑driven growth can sustain the elevated valuations seen over recent months. Technology firms, in particular, will be under scrutiny as analysts seek evidence that corporate spending on AI infrastructure translates into higher revenues and profits. The earnings outcomes are also expected to influence broader macro expectations, especially regarding inflation trajectories and the Federal Reserve’s interest‑rate outlook.

Key Takeaways

  • Oil prices surged nearly 5 % amid renewed U.S.–Iran strikes, reviving concerns over supply‑side inflation.
  • SK Hynix’s near‑14 % drop triggered a >5 % fall in the South Korean market, while TSMC posted a 36 % YoY revenue jump to T$1.27 trillion.
  • Futures indicated mixed U.S. market sentiment, with the Nasdaq‑100 under pressure and the Dow marginally higher.
  • The upcoming earnings season will be pivotal in confirming whether AI demand can justify current market valuations and shape inflation expectations.