Global markets equities inch higher with semi stocks, oil up amid further Iran tensions

The Dow Jones Industrial Average .DJI fell 158.80 points, or 0.30%, to 51,987.62, the S&P 500 .SPX rose 18.40 points, or 0.25%, to 7,476.09 and the Nasdaq Composite .IXIC rose 141.45 points, or 0.55%, to 25,661.70. U.S. second-quarter earnings season picks up pace, with several major companies, including Intel INTC.O and IBM IBM.N due to report results. The earnings will reinforce or challenge this year's gains, which have been driven by a surge in AI capital spending lifting semiconductor stocks and other companies that are seen as the beneficiaries of the buildout. The season will provide some insight into the AI-related trade, including for chipmakers, and also provide more color on secondary effects of the war. A global stock index edged higher on Monday as chipmaker shares recovered some of their recent sharp losses, while oil prices were also slightly higher with investors cautious about developments in the Gulf. Yemen's Iran-aligned Houthis declared a naval blockade against Saudi Arabia. But Iran's Foreign Ministry said mediators had presented "proposals" to Tehran, signalling that diplomatic contacts remain active, but gave no details. Equities mostly stabilized after last week's chip stock-led pullback. "We're seeing a bit of a turnaround in some of these semiconductor stocks that were under pressure," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. An index of semiconductors .SOX was last up 1.5% after ending Friday down more than 20% from its late June closing record high, a move that confirms it has been in a bear market. "Another factor is oil prices have somewhat reversed." U.S. crude CLc1 rose 0.15% to $82.61 a barrel and Brent LCOc1 rose to $88.63 per barrel, up 0.6% on the day. Higher oil prices have remained a worry for consumers and businesses since the February 28 start of the U.S.-Iran conflict. U.S. Treasury yields rose as traders weighed escalating oil prices, driven by the widening war with Iran, and the impact on prices. Futures markets are pricing in at least one Federal Reserve rate hike by year-end, 0#USDIRPR and on Monday the benchmark 10-year Treasury yield was at 4.56%, up 2 basis points. US/ The yield on benchmark U.S. 10-year notes US10YT=RR rose 6.28 basis points to 4.604%, from 4.541% late on Friday. The dollar rose as investors eyed developments in the Iran war as well, while the pound fell from earlier highs as markets prepared for new British Prime Minister Andy Burnham. Sterling GBP= weakened 0.26% to $1.3418. The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.15% to 100.98, with the euro EUR= down 0.25% at $1.141. U.S. natural gas futures eased about 1% on rising output, a decline in liquefied natural gas export flows, and forecasts for lower demand this week than previously expected.

Global markets equities inch higher with semi stocks, oil up amid further Iran tensions

Wall Street and earnings in focus

Equities and semiconductors recover

Oil, rates and currencies move with Iran conflict

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