Fresh rounds of attacks between the US and Iran threw another curveball at the market. Not too much damage in pre-market trading.

💻 Chips Drag Nasdaq Lower

  • The Nasdaq Composite slid 1.2% on Tuesday as another wave of semiconductor selling knocked the AI trade off kilter. The S&P 500 lost 0.5%, while the Dow Jones slipped 131 points, or 0.3%.
  • in chip stocks proved short-lived. memory-chip sector spilled into US trading, weighing on sentiment across the broader technology complex.
  • Samsung was at the center of the move after shares fell nearly 10% as investors dialed back expectations for blockbuster earnings. Sometimes "still very good, promise" simply isn't good enough for markets priced for perfection.

🌍 Middle East Adds More Heat

  • Stocks faced another headwind as geopolitical tensions intensified later in the day. The US launched what it described as a series of powerful strikes against Iran.
  • Officials said they follow attacks on commercial vessels in the Strait of Hormuz, while Washington also tightened pressure by revoking Iran's oil-export license.
  • Oil prices responded quickly. West Texas Intermediate crude climbed 2.1% to around $72 a barrel, while Brent crude advanced 1.9% to roughly $75.50. Higher oil prices can stoke inflation, making life harder for central banks.
  • Bond yields also moved higher as investors reassessed inflation risks. Rising bond yields — the return investors demand for holding government debt — can pressure high-growth technology stocks because they reduce the relative appeal of future earnings.

📊 Fed Minutes in Focus

  • Futures were relatively calm despite the overnight headlines. Dow futures edged lower by about 50 points, S&P 500 futures traded flat, and Nasdaq futures managed a modest 0.2% gain.
  • Across Asia, markets remained under pressure. Japan's Nikkei 225 slipped 0.5%, the Topix lost 0.3%, and South Korea's Kospi fell another 2.2% as chip stocks continued to unwind.
  • Traders now turn their attention to the Federal Reserve's June meeting minutes, due later Wednesday.
  • Investors will be looking for clues on whether Chair Kevin Warsh and policymakers are leaning toward additional interest rate hikes — a key variable for both tech valuations and broader market sentiment.