Futures Slide, Oil Surges as US-Iran Conflict Escalates; Chip Stocks Routed on Korea Selloff

US equity futures fell Monday, with oil prices surging as the United States and Iran intensified attacks in the Middle East, while a record selloff in South Korean semiconductor stocks deepened fears of a correction in the AI trade.

**Oil Surges on Strait of Hormuz Disruption**

Brent crude futures climbed $2.75 to $90.85 a barrel by 2202 GMT, up 3.12%, according to Reuters. US West Texas Intermediate rose $2.56 to $85.05, also up 3.10%. Earlier in the session, ZeroHedge reported Brent had spiked as much as 5% before paring gains to trade around $78.50.

Intensifying attacks have curbed energy shipments in the Strait of Hormuz, Business Times reported. The US and Iran exchanged strikes into Monday and issued conflicting claims over whether the strategic waterway remained open, according to ZeroHedge.

**Equity Futures Slide, Tech Under Pressure**

As of 8:15am ET, S&P 500 futures were down 0.4%, reversing Friday’s gains that pushed the index just shy of a record. Nasdaq 100 futures slid 1% as semiconductor stocks came under heavy selling pressure.

The Magnificent Seven were mixed: Microsoft, Alphabet, and Amazon each rose about 0.3%; Apple added 0.2%; Meta fell 0.8%; Nvidia dropped 1.2%; and Tesla declined 0.6%. Defensive sectors led cyclicals, while financials and energy were bid, ZeroHedge reported.

Bond yields edged up 1 basis point across the curve. The US dollar was flat. Energy led commodity gains but those moves were materially off their highs; precious metals and agriculture were lower.

**Chip Rout Deepens in Seoul**

The trigger for the tech selloff was a 15% plunge in SK Hynix in Seoul — its biggest drop on record — underscoring growing investor concerns that the AI-fueled boom has become overstretched, ZeroHedge reported. Korea’s Kospi index crashed, suffering its seventh marketwide circuit breaker for 2026, according to ZeroHedge.

SK Hynix American depositary receipts fell 7.9% in early US trading. Memory stocks Micron and Sandisk also fell sharply in premarket action.

TSMC reported quarterly sales rose 36%, meeting high expectations and signaling global demand for AI hardware remains intact, but that did not stem the broader tech rout.

“The sharp selloff in Korean equities from the June peak is raising questions with some investors regarding the sustainability of the AI trade more broadly,” Daniel Murray at EFG Asset Management told ZeroHedge. “With Middle East tensions rising again, this too has added to market consternation.”

Traders also pointed to risks from the newly listed SK Hynix ADR and anxiety around excessive capital expenditure. Goldman Sachs’ investment-grade bond sales team warned over the weekend that demand for new hyperscaler supply has collapsed, ZeroHedge reported.

**Week Ahead Packed with Catalysts**

Beyond the morning’s knee-jerk reaction to Middle East escalation, investors face a packed calendar including key US inflation readings, Fed Chair Warsh’s first testimony, major bank earnings, and AI updates from ASML and TSMC.

Mark Taylor, director of sales trading at Panmure Liberum, told ZeroHedge the week ahead is likely to herald a ramp-up in earnings volatility “where crowded trades will get audited.” He expects reactions to results to be “simple and asymmetric: beats are the baseline; misses are punished without mercy.”

With tech set to dominate earnings, Taylor underlined the risk of disappointment “when extreme positioning, leverage and elevated expectations collide with even the faintest hints that AI-driven memory pricing and capex may not compound at the same pace indefinitely.”

**Other Corporate Moves**

In premarket trading, American Express edged 1% higher after JPMorgan raised its recommendation to overweight, saying the premium on the stock is warranted given the defensive nature of its revenues. Shopify rose 2% after Jefferies upgraded the stock to buy, saying second-quarter results will likely beat consensus.

TriCo Bancshares jumped 7% after First Hawaiian agreed to buy the holding company for Tri Counties Bank. First Hawaiian slipped 6%. Agenus soared 46% after entering into a securities purchase agreement for a private placement of $85 million in upfront gross proceeds.

Apple sued OpenAI for trade secret theft, accusing the company of a coordinated campaign to steal information about upcoming products, ZeroHedge reported. Stellantis said second-quarter shipments climbed 10%, fueled by growth in North America. Elliott is said to have built a large stake in car-insurance software provider CCC Intelligent Solutions, which has been exploring a potential sale. Conmed is said to be exploring options including a potential sale amid takeover interest from private equity firms.

European stocks were muted, with telecommunications and energy shares the biggest outperformers, while tech and construction lagged. The Stoxx 600 was little changed.