Technology shares bore the brunt of Monday's selling. Intel dropped 4% after announcing a $15 billion common stock offering. Nvidia fell 2.9% amid reports of a $50 billion AI infrastructure financing plan that raised questions about capital intensity, and Apple declined 1.5%. The Philadelphia Semiconductor Index slid nearly 3%.
Treasury yields moved higher, with the 10-year climbing more than three basis points, pressuring growth-oriented equities. Cleveland Fed President Beth Hammack signaled that "several" rate hikes may still be required, arguing policy is not "meaningfully restrictive." The US Dollar Index edged up 0.27%.
Despite the pullback, the S&P 500 remains on track for its seventh consecutive quarter of double-digit earnings growth, and futures' resilience suggests the market is treating the Hormuz impasse as a tactical risk rather than a structural break.
What to Watch
The next inflection points arrive Wednesday with the CPI release and the Federal Reserve's policy decision, both of which will test whether the recent rally can withstand a renewed inflation pulse from energy markets.
With direct US-Iran talks stalled, Oman-mediated shipping discussions ongoing, and both capitals hardening compensation demands, the question becomes whether oil's geopolitical premium has further to run before the next data-dependent Fed meeting forces a repricing of risk?
Sources: Source 1 · Source 2 · Source 3 · Source 4 · Source 5 · Source 6
