U.S. stock futures fell early Monday, July 13, as a weekend of fresh U.S.-Iran strikes drove oil higher and deepened a selloff in chip stocks, pointing to a lower open ahead of a week dominated by big-bank earnings and a closely watched inflation report. Futures tied to the Dow Jones Industrial Average were down about 229 points, or 0.43 percent, while S&P 500 futures slipped 0.58 percent and Nasdaq-100 futures dropped 1.37 percent, according to pre-market trading.

The pullback reversed part of a solid finish to last week. On Friday, the S&P 500 rose 0.42 percent to 7,575.39, the Nasdaq Composite added 0.29 percent to 26,281.61, and the Dow Jones Industrial Average gained 149.60 points, or 0.29 percent, to 52,637.01, leaving the broad market up more than 1 percent for the week. Nvidia climbed about 4 percent Friday, while Meta Platforms jumped roughly 6 percent, capping its strongest week since early 2024. Monday’s futures, however, pointed to a reversal in much of that technology-led momentum.

The catalyst was the latest escalation in the Middle East. U.S. Central Command struck dozens of Iranian targets after an attack on a container ship, Tehran retaliated against Gulf states, and Iran again declared the Strait of Hormuz closed, a claim President Donald Trump disputed Sunday. Brent crude climbed 3.9 percent to $78.96 a barrel, while U.S. West Texas Intermediate gained 4 percent to $74.26, renewing concerns that higher energy costs could reignite inflation.

The selloff spread across global markets before reaching Wall Street. South Korea’s Kospi posted one of the day’s sharpest declines as SK Hynix and Samsung Electronics came under heavy selling pressure, weighing on semiconductor stocks throughout Asia and setting a cautious tone for U.S. chipmakers before the opening bell.

Sector performance reflected the shift toward risk aversion. Semiconductor shares, which have led markets throughout 2026 with the VanEck Semiconductor ETF up roughly 70 percent this year, faced renewed profit-taking. Energy companies appeared positioned to benefit from higher crude prices, while airline and travel stocks were expected to come under pressure as investors priced in rising fuel costs. More defensive sectors, including utilities and consumer staples, showed relative resilience in early trading.

Attention now turns to earnings season. Several of the nation’s largest financial institutions begin reporting second-quarter results this week, including JPMorgan Chase, Goldman Sachs, Wells Fargo, Citigroup, Bank of America, and Morgan Stanley. Investors will closely examine loan growth, credit quality, consumer spending trends and trading revenue for insight into the health of the U.S. economy. Later in the week, Netflix, UnitedHealth Group, GE Aerospace, ASML, and Taiwan Semiconductor Manufacturing Co. are also scheduled to report.

Economic data could prove equally important. The Bureau of Labor Statistics will release the June Consumer Price Index on Tuesday morning, with economists expecting headline inflation to ease to approximately 3.8 percent year over year from 4.2 percent in May, while core inflation is expected to remain more persistent. Producer prices and retail sales later in the week will provide additional insight into inflation pressures and consumer demand. Federal Reserve Chair Kevin Warsh is also scheduled to deliver his first congressional testimony since taking office, giving markets another closely watched event.

Other financial markets echoed the cautious tone. Treasury yields continued climbing, with the two-year Treasury note trading near its highest level since early 2025, while the U.S. dollar strengthened. Gold fell more than 1 percent, an unusual move during a period of heightened geopolitical tensions, reflecting investor concern that higher oil prices may keep inflation elevated and interest rates higher for longer rather than immediately boosting traditional safe-haven assets.

For investors, Monday’s outlook presents a market balancing two competing forces. Strong corporate earnings and easing inflation could help extend the rally that has driven equities to record highs this year. But another jump in oil prices or a hotter-than-expected inflation report could quickly shift sentiment and test whether Wall Street’s technology-led advance can withstand mounting geopolitical and inflation risks.

JBizNews Desk | New York

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