[BRIEFING.COM] The major averages finished near their session lows as technology stocks extended their recent weakness and another sharp surge in crude oil prices reinforced two of the market's dominant themes from last week. The S&P 500 (-0.8%), Nasdaq Composite (-1.6%), and DJIA (-0.3%) all finished lower, with the technology-heavy Nasdaq bearing the brunt of the selling pressure.

Semiconductor stocks remained at the center of today's weakness, with the information technology sector (-2.1%) finishing near its session low as the PHLX Semiconductor Index fell 4.8. The group's recent trading has been notably volatile, though the short-term trend has turned increasingly negative, leaving the semiconductor benchmark down over 13% since the start of July.

Memory names such as Sandisk (SNDK 1673.97, -241.95, -12.63%) were among the weakest performers after SK hynix Inc. (SKHY 152.35, -15.66, -9.32%) pulled back following Friday's strong Nasdaq ADR debut.

Taiwan Semiconductor Manufacturing (TSM 421.58, -12.53, -2.89%) held up relatively well after reporting another month of robust revenue growth. Elsewhere in technology, Microsoft (MSFT 390.99, +5.89, +1.53%) outperformed its mega-cap peers, though it did little to offset broader weakness across the group.

The technology-led selling spilled into other growth-oriented areas of the market, pressuring the consumer discretionary (-0.7%) and communication services (-1.0%) sectors. The Vanguard Mega Cap Growth ETF fell 1.5%, while the market-weighted S&P 500 (-0.8%) significantly underperformed the S&P 500 Equal Weight Index (-0.1%), underscoring the outsized influence of the market's largest technology companies.

Geopolitical developments added another headwind as crude oil climbed steadily throughout the session. U.S. Central Command announced that forces will resume blockading maritime traffic entering and exiting Iranian ports beginning July 14 at 4:00 p.m. ET. WTI crude oil futures settled up $6.73 (+9.4%) at $78.42 per barrel, lifting the energy sector (+3.2%) well ahead of the broader market as Valero Energy (VLO 295.79, +15.10, +5.38%) and Diamondback Energy (FANG 191.60, +8.21, +4.48%) ranked among the S&P 500's top performers. Even so, the broader impact of higher energy prices weighed on sentiment.

Outside of energy, investors rotated toward more defensive areas of the market. The consumer staples (+0.6%), utilities (+0.7%), health care (+0.3%), and real estate (+0.5%), sectors all finished higher.

The financials sector (+0.6%) also advanced despite modest weakness across several large banks ahead of tomorrow's slate of earnings reports.

The Russell 2000 (-0.8%) and S&P Mid Cap 400 (-0.6%) finished with losses similar to those of the major averages.

Today's action reinforced the market's recent tendency to swing alongside semiconductor stocks and oil prices, with renewed geopolitical tensions overwhelming the rotational buying interest that emerged earlier in the session. Attention now shifts to tomorrow's June CPI report and the unofficial start of second-quarter earnings season, where inflation data and guidance from several major banks are likely to determine whether those themes continue to dominate or give way to a broader set of market catalysts.

U.S. Treasuries began the week with losses across the curve, sending yields on the 5-year note and shorter tenors to fresh closing highs for the year while yields on the 10-year and 30-year notes approached their highs from May. The 2-year note yield settled up five basis points to 4.26%, and the 10-year note yield settled up four basis points to 4.61%.

• Russell 2000: +19.0% YTD
• S&P Mid Cap 400: +13.7% YTD
• Nasdaq Composite: +11.3% YTD
• S&P 500: +9.8% YTD

Reviewing today's data:

• The Treasury Department reported a $120.3 billion deficit for June versus a surplus of $27.0 billion for the same period in June 2025. Receipts totaled $495.8 billion, while outlays reached $616.1 billion.
  • The key takeaway from the report is the recognition that tariff refunds are cutting into government receipts at the same time the amount spent on net interest is going up. The results is a 12-month budget deficit that exceeds the 12-month deficit registered in May.

[BRIEFING.COM] The major averages remain near session lows with just half an hour left in today's session.

Investors will have several notable catalysts to look forward to before the open tomorrow morning. The June CPI will be released tomorrow at 8:30 a.m. ET, with economists expecting headline CPI to fall 0.1% month-over-month and ease to roughly 3.9% year-over-year from 4.2%. Core CPI, the Fed's preferred inflation gauge, is expected to rise 0.2% month-over-month and remain near 2.9% year-over-year, keeping inflation above the Fed's 2% target.

Markets are pricing roughly a 98% probability of a September rate hike, with tomorrow's inflation report unlikely to materially alter that outlook. While a hotter-than-expected CPI reading could spark discussion of a July move, the market generally views such an outcome as unlikely under new Fed Chair Kevin Warsh.

In addition to the inflation reading, the market will receive earnings results from a cohort of major banking names, including JPMorgan Chase (JPM 334.85, -1.62, -0.48%), Wells Fargo (WFC 87.12, -0.04, -0.05%), Bank of America (BAC 59.37, -0.30, -0.50%), Citigroup (C 139.49, -1.30, -0.92%), and Goldman Sachs (GS 1043.43, -11.75, -1.11%).

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-1.4%), and DJIA (-0.3%) continue to trade lower as the market enters the final hour of the session.

U.S. Central Command announced that forces will resume blockading maritime traffic entering and exiting Iranian ports on July 14 at 4 p.m. ET.

On a related note, crude oil futures settled today's session $6.73 higher (+9.4%) at $78.42 per barrel.

Meanwhile, on the data front, the Treasury Department reported a $120.3 billion deficit for June versus a surplus of $27.0 billion for the same period in June 2025. Receipts totaled $495.8 billion, while outlays reached $616.1 billion.

The key takeaway from the report is the recognition that tariff refunds are cutting into government receipts at the same time the amount spent on net interest is going up. The result is a 12-month budget deficit that exceeds the 12-month deficit registered in May.

[BRIEFING.COM] The S&P 500 (-0.76%) is in second place following the release of the Treasury's June budget from the bottom of the hour. 

The Treasury Budget for June showed a deficit of $120.3 billion compared to a surplus of $27.0 billion in the same period a year ago.

The June deficit resulted from outlays ($616.1 billion) exceeding receipts ($495.8 billion). The Treasury Budget data are not seasonally adjusted so the June deficit cannot be compared to the May deficit of $292.6 bln.

In short, the U.S. federal budget deficit widened in June, a sharp reversal from the year-ago surplus, as tariff-related refunds outweighed record customs collections and pressured government receipts. The Treasury collected $23.6 billion in duties but issued $49.2 billion in refunds, while higher spending, including a 28% increase in net interest costs on public debt, pushed fiscal-year-to-date deficit levels to $1.37 trillion.

[BRIEFING.COM] The Nasdaq Composite (-1.49%) is in last place on Monday afternoon, down about 390 points.

Gold futures settled $108 lower (-2.6%) at $4,005.70/oz, as surging oil prices fueled concerns that higher inflation could keep the Federal Reserve from cutting interest rates as quickly as previously expected. Rising Treasury yields and a stronger U.S. dollar added pressure to bullion, outweighing its traditional safe-haven appeal amid escalating Middle East tensions.

Meanwhile, the U.S. Dollar Index is up +0.3% to $101.25.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.28%) is down about 145 points, hosting the shallowest losses on Monday afternoon among the major averages.

A look inside the DJIA shows that NVIDIA (NVDA 204.24, -6.72, -3.19%), Boeing (BA 216.58, -5.70, -2.56%), and Caterpillar (CAT 931.68, -20.73, -2.18%) show modest losses.

Meanwhile, Salesforce (CRM 171.93, +8.61, +5.27%) is solidly higher.

The DJIA is now +0.33% higher month-to-date.

[BRIEFING.COM] The S&P 500 (-0.6%), Nasdaq Composite (-1.3%), and DJIA (-0.3%) are lower just after midday as pronounced weakness across semiconductor stocks and a sharp rise in crude oil revive two of the themes that drove last week's elevated volatility.

Weakness across semiconductor stocks has the PHLX Semiconductor Index down 4.5%, weighing on the top-weighted information technology sector (-1.8%). Memory names such as Sandisk (SNDK 1697.50, -218.42, -11.40%) and Micron (MU 929.96, -49.34, -5.04%) are among the biggest laggards after SK hynix Inc. (SKHY 155.20, -12.81, -7.62%) moved sharply lower following a weak overnight session, giving back some of the gains from its strong Nasdaq ADR debut on Friday.

Taiwan Semiconductor Manufacturing (TSM 425.59, -8.52, -1.96%) holds a more modest loss after reporting June revenue of NT$442.68 billion, up 6.2% sequentially and 67.9% year-over-year, with first-half 2026 revenue up 35.6% year-over-year to roughly NT$2.40 trillion.

Elsewhere in tech, Microsoft (MSFT 393.09, +7.99, +2.07%) is a "Magnificent Seven" standout amid a solid day for software stocks that has the iShares GS Software ETF up 0.9%. Relative weakness across other mega-cap technology stocks keeps the consumer discretionary (-0.6%) and communication services (-0.3%) sectors lower, contributing to a deterioration in the broader market from earlier levels.

While high-profile technology stocks have been under pressure since the open, the market initially saw strong rotational gains into other sectors, which have since narrowed considerably. Part of the broader deterioration is being attributed to a surge in oil prices over the weekend, with oil steadily climbing since the stock market opened. WTI crude oil is currently up $4.25 (+6.0%) to $75.66 per barrel after reports that the U.S. and Iran continue to exchange fire. President Trump announced that the U.S. will reimpose a naval blockade on Iran while seeking a 20% fee on all cargo shipped through the waterway.

Amid the oil-driven volatility and technology weakness, the consumer staples (+0.6%), utilities (+0.6%), and health care (+0.4%) sectors are relative outperformers.

Outside of the S&P 500, the Russell 2000 (-0.9%) and S&P Mid Cap 400 (-0.7%) hold losses similar to those across the major averages.

On the policy front, Fed Governor Christopher Waller (voting FOMC member) said another hot inflation reading could warrant a near-term rate hike, adding to the significance of tomorrow's June CPI report (Briefing.com consensus: -0.1%). With several major banks also scheduled to report earnings, today's oil- and semiconductor-driven volatility may give way to a market increasingly focused on economic data and the start of second-quarter earnings season.

There is no economic data of note.

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-1.3%), and DJIA (-0.5%) are charting session lows just after midday.

CNBC reports that 12 state attorneys general have filed a lawsuit attempting to block Paramount Skydance's (PSKY 9.68, +0.28, +2.92%)acquisition of Warner Bros. Discovery (WBD 27.26, +0.67, +2.52%) on antitrust grounds. The deal was previously approved by the Antitrust Division of the U.S. Department of Justice, though the merger is also still being reviewed by the European Union.

[BRIEFING.COM] The major averages trade lower in a relatively stable range at midday.

While corporate news is on the lighter side today, MGM Resorts (MGM 47.52, +0.64, +1.37%) is ticking higher after a Wall Street Journal report that it's negotiating a possible deal with Barry Diller's People Incorporated (PPLI 46.42, -0.07, -0.16%) after Mr. Diller offered to acquire all of the outstanding shares of MGM that it does not already own for $48.30 per share in cash. According to the report, MGM has set up a special board committee to help evaluate the proposal.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.8%), and DJIA (-0.2%) are lower just before midday as the market navigates a sharp swing lower across semiconductor stocks, while oil prices surge.

The PHLX Semiconductor Index is down 3.1%, which keeps the information technology sector (-1.0%) as the worst-performing S&P 500 sector, weighing on the major averages. In addition to the usual back-and-forth action across semiconductor stocks, today's weakness is also being attributed in part to SK hynix Inc. (SKHY 156.70, -11.32, -6.73%), which is pulling back after making its U.S. debut on Friday and following a weak overnight session in South Korea.

Shortly after the open, it looked as if the losses across semiconductor stocks were being reinvested into other pockets of the market as nine S&P 500 sectors traded higher while the DJIA held a modest gain. However, that trend has weakened throughout the session as six S&P 500 sectors now hold losses.

The energy sector (+2.4%) remains a standout as oil prices move firmly higher today in reaction to U.S.-Iran hostilities, though the broader market has seen its gains considerably thinned since the open. Decliners now outpace advancers by a slim 13-to-12 margin on the NYSE after advancers held an advantage for most of the morning, while decliners continue to outpace advancers by a roughly 5-to-3 clip on the Nasdaq.

[BRIEFING.COM] The major averages remain lower this morning as opening strength in the broader market begins to fade while heavily-weighted tech names largely underperform.

Taiwan Semiconductor Manufacturing (TSM 431.52, -2.59, -0.60%) is modestly lower this morning despite reporting June revenue of NT$442.68 billion, up 6.2% sequentially and 67.9% year-over-year, with first-half 2026 revenue up 35.6% year-over-year to roughly NT$2.40 trillion. The move appears less tied to company-specific deterioration than to a broader semiconductor de-risking trade, with chip stocks under pressure amid overseas market weakness, SK hynix Inc. (SKHY 156.76, -11.24, -6.69%) volatility, and geopolitical tension ahead of TSM's July 16 earnings report.

The PHLX Semiconductor Index (-3.4%) is off its opening lows, though semiconductor stocks remain a point of relative weakness.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-1.2%), and DJIA (-0.1%) are now lower across the board following President Trump's announcement that the U.S. will reimpose a naval blockade on Iranian ports. The president said on Truth Social that the U.S. "will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World."

Crude oil is currently up $3.28 (+4.6%) to $74.70 per barrel.

There are some laggards across oil- and rate-sensitive stocks such as United Airlines (UAL 122.81, -3.19, -2.53%), but overall the immediate reaction to the surge in oil prices has been relatively tempered. Several cruise lines such as Royal Caribbean (RCL 295.60, +10.23, +3.58%)hold solid gains, while the iShares U.S. Home Construction ETF (-0.4%) is down just modestly.

[BRIEFING.COM] The S&P 500 (-0.3%), Nasdaq Composite (-1.0%), and DJIA (+0.1%) are mostly lower just after the open as tech losses weigh on the indices despite relatively broad strength elsewhere.

The top-weighted information technology sector (-1.4%) is a drag on the market this morning as the PHLX Semiconductor Index slides 3.5%. Memory names such as Micron (MU 924.86, -54.44, -5.56%) and Sandisk (SNDK 1740.90, -175.02, -9.14%) are among the worst-performing S&P 500 components, moving lower in tandem with SK Hynix Inc. (SKHYV, 135.00, -13.60, -9.2%) which is selling off sharply after its ADR debut on the Nasdaq on Friday.

Electrical product names once again move lower with the semiconductor group, weighing on the industrials sector (-0.3%), while general weakness across mega-cap tech names keeps the consumer discretionary (-0.2%) and communication services (-0.2%) sectors modestly lower as well.

Meanwhile, eight S&P 500 sectors move higher, led by the energy sector (+2.7%) amid the jump in oil prices. The defensive consumer staples (+1.5%), utilities (+0.9%), and health care (+0.8%) sectors are also sporting solid gains, suggesting some rotational action as high-profile tech names retreat.

The stock market remains on track for a lower opening this morning as weakness across semiconductors and mega-cap tech weighs on equity futures.

A ramp-up in tensions between the U.S. and Iran over the weekend adds an additional layer of potential volatility to a week that will feature consequential earnings, inflation data, and Fed commentary.

The S&P 500 futures currently trade 30 points below fair value. 

Equity indices in the Asia-Pacific region had a mostly higher start to the week while South Korea's Kospi (-9.0%) struggled, reaching its lowest level since early May, with SK Hynix falling more than 15.0% after its Friday debut in the U.S. South Korea's exports were up 54% yr/yr through the first ten days of June with chip exports jumping nearly 200%. China imposed temporary export restrictions on helium due to renewed fighting in the Middle East. Citigroup upgraded Japan to Overweight from Underweight.

• In economic data:
  • India's June trade deficit $30.43 bln (last deficit of $28.21 bln). June CPI 4.38% yr/yr (expected 4.30%; last 3.93%)
  • New Zealand's June Performance of Services Index 50.6 (last 48.0)

---Equity Markets---

• Japan's Nikkei: -1.9% 
• Hong Kong's Hang Seng: +0.2%
• China's Shanghai Composite: -2.1%
• India's Sensex: +0.1%
• South Korea's Kospi: -9.0%
• Australia's ASX All Ordinaries: UNCH

Major European indices trade near their flat lines amid some ongoing Iran-related worries after reports of continued strikes over the weekend. The U.K.'s leadership race will take shape this week with Andy Burnham still seen as the clear favorite to become next prime minister. Reports suggest that he is planning to combine a departmental spending review with an autumn budget.

• No data today

---Equity Markets---

• STOXX Europe 600: -0.1%
• Germany's DAX: +0.1%
• U.K.'s FTSE 100: -0.1% 
• France's CAC 40: +0.1%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.1%

The S&P 500 futures currently trade 39 points below fair value as semiconductor stocks (and in particular, memory names) face mounting pressure this morning.

A cohort of prominent energy names move higher as WTI crude oil flirts with the $75 per barrel level, though oil and rate-sensitive names trend lower as the bump in oil prices pushes Treasury yields higher across the curve.

Equity futures point to a lower open this morning as semiconductor stocks face pressure in the premarket while lingering hostilities between the U.S. and Iran send oil prices higher. Both semiconductors and oil contributed to considerable choppiness last week, with the S&P 500 and Nasdaq Composite notching solid weekly gains, while the DJIA faced a modest loss.

Crude oil is currently up $2.43 (+3.4%) to $73.84 per barrel after the U.S. and Iran traded strikes over the weekend. Iran maintains that the Strait of Hormuz is closed (and attacked a commercial ship travelling the waterway), though Bloomberg reports that a southern route remains open.

Meanwhile, semiconductor stocks are under pressure after shares of SK Hynix moved sharply lower following a successful ADS debut on the Nasdaq on Friday.

There are no earnings on the calendar today, but tomorrow will effectively kick off the Q2 earnings season with a slate of major banking names.

Similarly, there are no economic data releases of note today, though tomorrow will feature the June CPI (Briefing.com consensus -0.1%).

In corporate news:

• Apple (AAPL 315.94, +0.62, +0.2%) sued OpenAI for allegedly stealing company secrets, according to The New York Times.
• Meta Platforms (META 664.25, -5.09, -0.8%) suspended its newly released Muse Image AI image generator, according to Business Insider.
• Taiwan Semiconductor Manufacturing (TSM 434.60, +0.49, +0.1%) reported June revenues up 68% year-over-year, with first half revenues rising 36%.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region had a mostly higher start to the week while South Korea's Kospi (-9.0%) struggled, reaching its lowest level since early May, with SK Hynix falling more than 15.0% after its Friday debut in the U.S. Japan's Nikkei: -1.9%, Hong Kong's Hang Seng: +0.2%, China's Shanghai Composite: -2.1%, India's Sensex: +0.1%, South Korea's Kospi: -9.0%, Australia's ASX All Ordinaries: UNCH.

In news:

• U.S. South Korea's exports were up 54% yr/yr through the first ten days of June with chip exports jumping nearly 200%.
• China imposed temporary export restrictions on helium due to renewed fighting in the Middle East.
• Citigroup upgraded Japan to Overweight from Underweight.

In economic data:

• India's June trade deficit $30.43 bln (last deficit of $28.21 bln). June CPI 4.38% yr/yr (expected 4.30%; last 3.93%)
• New Zealand's June Performance of Services Index 50.6 (last 48.0)

Major European indices trade near their flat lines amid some ongoing Iran-related worries after reports of continued strikes over the weekend. STOXX Europe 600: -0.1%, Germany's DAX: +0.1%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.2%.

In news:

• The U.K.'s leadership race will take shape this week with Andy Burnham still seen as the clear favorite to become next prime minister.
• Reports suggest that he is planning to combine a departmental spending review with an autumn budget.

There is no economic data of note.

[BRIEFING.COM] The major averages finished near their best levels of the session following a relatively quiet day of trading, with easing oil prices helping the market look past geopolitical volatility and support equities after a volatile week marked by sharp swings in semiconductor stocks and crude oil. The S&P 500 (+0.4%), Nasdaq Composite (+0.3%), and DJIA (+0.3%) all closed higher. The S&P 500 and Nasdaq Composite also finished firmly higher for the week, while the DJIA ended modestly lower.

Markets briefly turned lower during the morning after President Trump said the U.S. would continue talks with Iran while declaring the ceasefire over. Sentiment steadied after Axios reported that the U.S. and Iran are expected to hold another round of talks in Switzerland next week, while Bloomberg reported that oil tankers continue to transit the Strait of Hormuz despite ongoing tensions. WTI crude oil futures settled down $0.69 (-1.0%) at $71.41 per barrel.

The retreat in oil prices supported broad participation across the market, with 10 S&P 500 sectors finishing higher. The materials sector (+1.1%) led the advance as container and packaging companies benefited from easing energy costs, while the decline in crude also helped keep broader market volatility subdued.

The communication services sector (+0.9%) was another standout thanks to Meta Platforms (META 669.21, +37.73, +5.97%), which finished as the best-performing S&P 500 component. Investors continued to warm to the company's AI strategy following a series of product and infrastructure announcements, including reports that it may monetize surplus computing capacity and expand its AI infrastructure, reinforcing confidence that its elevated AI spending can evolve from a margin headwind into a meaningful long-term growth opportunity.

The information technology sector (+0.6%) also strengthened into the close despite relatively muted action across semiconductor stocks, with the PHLX Semiconductor Index finishing little changed (+0.1%). NVIDIA (NVDA 210.96, +8.18, +4.03%) nevertheless was a standout%, extending a strong weekly advance.

While not a component of the S&P 500, SK hynix Inc.'s (SKHYV 168.31, +19.31, +12.96%) Nasdaq ADS enjoyed a strong U.S. debut, reinforcing investor appetite for one of the AI industry's leading high-bandwidth memory suppliers.

The health care sector (-0.8%) was the lone sector to finish lower, weighed down by continued weakness in Moderna (MRNA 68.27, -8.29, -10.83%), which ended as the worst-performing S&P 500 component.

On the earnings front, Delta Air Lines (DAL 87.39, -1.61, -1.81%) also declined despite delivering better-than-feared quarterly results and reaffirming its full-year outlook, suggesting investors remain cautious about the pace of the airline industry's earnings recovery even as the company pointed to improving demand.

Although today's session lacked the sharp rotations seen earlier in the week, it capped a constructive stretch for equities as investors largely looked past the latest geopolitical developments. Attention now shifts to next week's start of second-quarter earnings season, with the major banks set to report first, along with another round of inflation data that could help shape expectations for monetary policy. With the market continuing to trade near record highs, corporate guidance is likely to be just as important as the quarterly results themselves.

There was no economic data of note. 

U.S. Treasuries finished a bumpy week on a lower note with yields on 5-year note and shorter tenors settling just below this year's highs. The 2-year note yield settled up five basis points to 4.21% (+7 basis points this week), and the 10-year note yield settled up three basis points to 4.57% (+8 basis points this week).

• Russell 2000: +20.0% YTD
• S&P Mid Cap 400: +14.4% YTD
• Nasdaq Composite: +13.1% YTD
• S&P 500: +10.7% YTD
• DJIA: +9.5% YTD