By William Collins, consultant in stock markets – Eurasia Business News, July 13, 2026. Article no 3027
U.S. stocks on July 13 opened weaker, led down by AI and chip names, as a record plunge in SK Hynix and renewed U.S.–Iran tensions (with higher oil) hit risk appetite ahead of bank earnings and Fed Chair Warsh’s testimony.
In mid-day, the benchmark S&P 500 (SP500) was last -0.7%, while the Nasdaq Composite (COMP:IND) was -1.3%, and the blue-chip Dow (DJI) was -0.5%.
AI and chip stocks under pressure
SK Hynix’s Seoul‑listed shares dropped about 15.4%, their steepest fall on record, after a blockbuster Nasdaq ADR debut, as investors locked in profits and questioned how long AI‑driven memory demand can sustain current valuations.
The selloff spilled over to U.S. semiconductor names: pre‑market, Micron was down around 5%, while Western Digital, Seagate and SanDisk fell roughly 5–7%, and a broad semiconductor ETF (SOXX/Ishares Semi) was indicated down nearly 3%.
Strategists framed the move as an “AI winners unwind” or “sell‑the‑news” reaction after SK Hynix’s huge U.S. listing, with crowded positioning in AI hardware making the sector particularly vulnerable to profit‑taking.
Oil spike and Iran tensions
Geopolitical risk flared as the U.S. and Iran exchanged strikes and Tehran moved to close or threaten traffic through the Strait of Hormuz, a chokepoint for a large share of global seaborne oil
This escalation pushed crude higher, with Brent crude moving into the high‑$70s per barrel and gaining several percent as traders priced a higher probability of supply disruption.
Rising energy prices fed fears of renewed inflation pressure, adding another headwind for equities already sensitive to rate expectations and valuation concerns.
Trump also announced a 20% reimbursement fee on all cargo shipped through the critical waterway to offset the costs of U.S. military protection.
Macro and event backdrop
The week of July 13–17 was set up as a key one: second‑quarter earnings season was kicking off with major U.S. banks, including JPMorgan, Goldman Sachs, Citigroup, Wells Fargo, Bank of America, and others reporting Tuesday onward.
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Economists and strategists expected another quarter of 20%‑plus earnings growth for the S&P 500, reinforcing the view that the bull market had been earnings‑led rather than purely multiple‑driven.
New Fed Chair Kevin Warsh was scheduled to deliver his first semi‑annual monetary policy testimony to Congress starting Tuesday, with investors watching closely for signals on whether the Fed might reconsider last year’s rate cuts in light of still‑elevated inflation and higher oil.
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Gold was around 4,050–4,100 dollars per ounce, reflecting very elevated longer‑term levels but no extreme one‑day move tied specifically to that date. The decline comes after gold reached an all-time high of $5,596.42/oz in January.
Silver was trading near 58–59 dollars per ounce and losing a bit more than 2% on the session.
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© Copyright 2026 – Eurasia Business News. Article no. 3027
Eurasia Business News 