Market Summary - July 13, 2026

US Market Overview

As the US market opened, there was a notable outflow of capital from "memory stocks," leading to a pressured start on Wall Street. Futures contracts indicated a lower opening, with the S&P 500 futures down approximately 0.3%, Nasdaq-100 futures down by 1%, while the Dow Jones remained stable near its benchmark levels.

Geopolitical Tensions

The primary catalyst for market pressure was the escalating conflict between the US and Iran over the Strait of Hormuz. Following a series of strikes over the weekend, Iran announced the closure of the strait, prompting the US to respond with strikes on over 140 Iranian targets, marking the first use of naval combat drones in this context. President Trump stated that the US would "police" the strait, expecting financial compensation for its military presence in the region.

Market Reactions

In response to these developments, Brent and WTI crude oil prices surged by over 3%, recovering from session lows as tanker traffic through the strait slowed significantly. The energy and commodities sectors showed resilience, benefiting from the rise in oil prices, while technology and semiconductor stocks faced declines, particularly in memory and AI chips.

Sector Performance

Precious metals, including gold and silver, experienced declines, which is atypical given the geopolitical tensions, suggesting investor concerns over the Federal Reserve maintaining higher interest rates. The memory and chip sector saw significant volatility, with SK Hynix's US ADRs dropping by 8-10% after a tumultuous debut on the Nasdaq, where shares initially soared by nearly 13% before plummeting in Seoul by over 15%.

Other notable declines included the Roundhill Memory ETF down by 9%, SanDisk down 5.5%, and both Western Digital and Micron Technology down 5%. The iShares Semiconductor ETF (SOXX) also fell by 2%, influenced by declines in Intel and AMD shares.

Positive Developments

Despite the overall negative sentiment, TSMC reported a 68% year-on-year revenue increase in June, exceeding forecasts, indicating strong demand for AI production capacity, with its shares rising by 1%. Additionally, CCC Intelligent Solutions saw a 2% increase in shares following news of Elliott Investment Management acquiring a significant stake in the company.

MGM Resorts shares rose by over 2% amid reports of private talks with Barry Diller regarding a potential takeover. Energy companies such as Valero, ConocoPhillips, and ExxonMobil also reported gains between 1-2% due to the surge in oil prices following the recent attacks in the Persian Gulf.