U.S.-Iran Strikes, Chip Rout Roil Markets to Start Key Week

The U.S. and Iran exchanged fresh airstrikes over the weekend, sending oil prices surging 3% and dragging stock futures lower as the Strait of Hormuz becomes a flashpoint. Chip stocks took a heavy hit in premarket trading, with SK Hynix plunging 10% in a reversal from its record Nasdaq debut, reigniting worries over AI spending. Meanwhile, Meta announced plans to manufacture its own AI chip, Delta beat Q2 estimates despite record fuel costs, and Whirlpool shocked investors with a steep outlook cut and dividend suspension.

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U.S.-Iran Airstrikes Send Oil Surging, Futures Lower The U.S. and Iran traded fresh airstrikes over the weekend, with Iran declaring the Strait of Hormuz closed — a claim disputed by President Trump. Crude oil jumped over 3% in response as global investors braced for supply disruptions and renewed geopolitical risk. 1 2 3

Chip Stocks Routed as SK Hynix Plunges 10% in Premarket U.S.-listed shares of SK Hynix fell sharply following its record $26.5 billion Nasdaq debut, leading a broad selloff in Micron, AMD and other semis. The rout stoked renewed anxiety over AI spending just as Nomura argued demand concerns are overdone and Wall Street pushed back on Big Tech's massive debt binge for AI infrastructure. 2 3 4 5

Meta Plans to Start Manufacturing Its Own AI Chip in September The social media giant will ramp up production of its “Iris” data center chip to reduce reliance on Nvidia and AMD, per an internal memo. The in-house silicon is part of Meta’s plan to boost total computing power to 14GW by 2027, and the stock jumped 15% last week. 6 7

Apple Sues Ex-Employee Over Trade Secrets Stolen for OpenAI The lawsuit alleges former iPhone engineer Chang Liu exploited a software bug to download confidential files before joining OpenAI’s hardware division. It accuses OpenAI of a “systematic effort” to acquire Apple’s protected information, escalating the rivalry between the tech titans. 8

Whirlpool Slashes Outlook, Suspends Dividend, Shares Tumble 12% The appliance maker cut its 2026 earnings guidance and suspended its dividend, citing “recession-like” conditions in the housing market and weakening consumer demand. The warning is one of the starkest signals yet on Main Street and sent shares plunging 12%. 9

Delta Reports Record Revenue, Affirms 20% Earnings Growth Goal Delta Air Lines posted $19.8 billion in Q2 operating revenue and $1.4 billion in pre-tax profit despite absorbing the highest fuel costs in its history. The strong results signal sustained travel demand and the carrier reaffirmed its full-year guidance. 10

TSMC June Revenue Surges 68% on Tight AI Chip Demand Taiwan Semiconductor Manufacturing Co. reported first-half revenue up 35.6% year-over-year, driven by robust sales of advanced chips for AI applications. The strong pre-earnings data point offers a contrasting signal against broader chip sector volatility. 11

Fed Chair Warsh and CPI Data Highlight Pivotal Week Ahead Investors are bracing for June’s consumer price index, Fed Chair Kevin Warsh’s first congressional testimony, and heavy earnings from JPMorgan, Goldman Sachs, and Netflix. The packed calendar will test market optimism and set the tone for the second half of the year. 12 13