Stock Market Update

[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.