Wall Street set for lower open as Iran tensions jolt sentiment; chip stocks fall

Among other movers, Deckers Outdoor DECK.N[0m added 1.2%, as Jefferies upgraded the footwear maker's rating to "buy". "The escalating Iran conflict is testing whether the stock market's broad-based growth can hold, and the market will have to balance the positive of corporate earnings strength with the negative of geopolitical risks," said Alex Guiliano, chief investment officer at Resonate Wealth Partners. Memory-chip makers, which have had a sharp rally this year, extended their recent pullback, with Micron Technology MU.O[0m down 4.9%, while Western Digital WDC.O[0m, Seagate STX.O[0m and Sandisk SNDK.O[0m dropped 5.1%, 4% and 5.4%, respectively. U.S.-listed shares of South Korean chipmaker SK Hynix SKHY.O[0m fell 9.3% after a blockbuster Nasdaq debut on Friday. IShares semiconductor ETF SOXX.O[0m fell 3.1%. At 8:44 a.m. ET, Dow E-minis YMcv1[0m were down 75 points, or 0.14%, and S&P 500 E-minis EScv1[0m were down 30 points, or 0.39%. Nasdaq 100 E-minis NQcv1[0m were down 346.25 points, or 1.15%. The moves came ahead of a busy week of economic data and corporate earnings that could test the resilience of the U.S. equity rally and the health of corporate America. The S&P 500 .SPX[0m is up more than 10% this year and less than 1% below its early-June record close. The benchmark posted a second straight weekly gain last week, despite volatility in semiconductor shares and renewed U.S.-Iran tensions that put inflation risks back in focus. Major Wall Street banks will kick off second-quarter earnings this week. Netflix NFLX.O[0m, General Electric GE.N[0m and UnitedHealth UNH.N[0m are also due to report. S&P 500 earnings are expected to rise 23.7% in the second quarter from a year earlier, according to LSEG I/B/E/S. "Consumers are showing remarkable resilience and I would expect that bank earnings will probably do fairly well, given the current consumer environment," said Peter Andersen, founder of Andersen Capital Management. Investors will also parse several key economic reports, starting off with Tuesday's U.S. consumer price index, an inflation reading that could reset expectations for the path of interest rates. On Tuesday, Fed Chair Kevin Warsh is expected to deliver his first monetary policy testimony before Congress. Fed Governor Christopher Waller is scheduled to speak later on Monday on the economic outlook. Markets are pricing in at least one 25-basis-point rate hike by year-end, according to LSEG data. Wall Street's main indexes were on track to open lower on Monday as a fresh escalation between the U.S. and Iran in the Gulf pushed oil prices higher and unsettled investors, while chip stocks also came under pressure. Iran and the U.S. exchanged attacks over the weekend and Tehran said it had closed the Strait of Hormuz, a vital conduit for global energy supplies. The escalation undercuts an interim U.S.-Iran agreement signed last month that aimed to reopen the strait and end the war after 60 days of negotiations. Crude futures LCOc1[0m rose more than 3% after investors weighed the renewed threat to the shipping route. Tech-heavy Nasdaq futures led declines, with semiconductor stocks among the biggest premarket losers.

Wall Street set for lower open as Iran tensions jolt sentiment; chip stocks fall

Other movers

Semiconductor shares extend recent pullback

Indexes weaker before a busy week of data and earnings

Futures point lower as Iran tensions lift oil and pressure tech

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