Stock futures slip after U.S., Iran exchange airstrikes again; Kospi plunges 7%: Live updates - CNBC

The three leading U.S. indexes ended Monday's session in the red.

The S&P 500 slid 0.79% to finish at 7,515.34, while the Nasdaq Composite closed down 1.55% at 25,873.18. The Dow Jones Industrial Average declined 138.37 points, or 0.26%, to 52,498.64.

— Sean Conlon

The stage is set for the next round of earnings, and with lofty expectations, the results may have a hard time measuring up, according to Sam Stovall of CFRA Research.

The firm's chief investment strategist noted that earnings per share for the second quarter are expected to see a year-over-year increase of 20.9%, per S&P Capital IQ consensus estimates. That's more than the year-over-year average quarterly rise increase of 11.6% since 2009, he said.

When looking at full-year projections, S&P 500 EPS are anticipated to rise 22.9% in 2026, and then 18.2% in 2027, Stovall said. This comes as the S&P 500's forward price-to-earnings ratio was at 21.3 times on June 30 — a 7.5% premium relative to its 10-year average, he added.

"Entering this Q2 EPS reporting period with such high growth expectations may prove challenging, especially if forward guidance is limited by inflationary uncertainties," the investment chief wrote.

— Sean Conlon

Nvidia stock is trading at some of its lowest valuation metrics in years, and analysts are thinking it could be a good time to buy.

The stock is trading at a forward price-to-earnings ratio of 19, the lowest multiple since 2015, FactSet data shows.

"This is a company that has 97% of the GPU market. Okay, fine, they're getting more competition, but that's not going to go below 90% … I think there's a lot of ways you can win with this one," Stephanie Link, chief investment strategist at Hightower Advisors, said on CNBC's "Halftime Report."

Joe Terranova, senior managing director of Virtus Investment Partners, said he thought the company is poised for some upward movement.

"After sitting sideways for a multi-month period, the beginnings of the return to accumulation are unfolding," he said.

— Tobias Burns

Chip stocks have been sagging, but JPMorgan doesn't think it's a sign that the AI investment boom is coming to an end – not yet, anyway.

Rather, the dip in chip stocks – which has seen the Roundhill Memory ETF (DRAM) fall by more than 12% over the past month and the VanEck Semiconductor ETF (SMH) fall by more than 5% – has more to do with crowding within the space than tapering demand.

"We view the recent weakness in Semis as a reflection of crowded positions, in line with previous episodes in Nov-Dec 2025 and Feb-Apr 2026, and not the beginning of a reversal of the AI upstream cycle, which remains fundamentally intact," Fabio Bassi at JPMorgan wrote in Friday note to clients.

— Tobias Burns

Jefferies upgraded Shopify to buy from hold and raised its price target to $160 from $140 — implying a 31% upside from Friday's close.

Analyst Samad Samana noted the e-commerce platform is well suited to capture the rising "agentic commerce" market, where AI-powered tools find and purchase goods on behalf of a consumer.

"We see SHOP as uniquely positioned to become the infrastructure layer for agentic commerce and the 'agent enablement' toolkit for merchants." Samana wrote in Monday's note to clients.

The analyst noted new tools that the platform has added to help businesses optimize advertising spending, sell to international customers, and allow customers to buy products using AI.

"Collectively, the updates reinforce SHOP's positioning as the operating system and connective layer for commerce across both traditional and emerging AI-driven channels," the analyst wrote.

Shopify is down 22% this year, underperforming compared to the S&P 500.

The U.S. government ran a $120.3 billion budget deficit in June, swinging to a shortfall after a surplus for the same period last year as tariff refunds doubled the amount taken in, the Treasury Department announced Tuesday.

Last month's red ink brought the annual deficit to $1.37 trillion, up 2% from a year ago. In June 2025, the government ran a $27 billion surplus.

Tariff refunds, the result of a court loss for the White House, totaled $49 billion, more than twice the $24 billion that duties left in place generated.

Aside from the tariff situation, net interest on the nearly $40 trillion national debt continued to be a significant burden. The $104 billion in net interest paid was the second-highest expenditure after Social Security. The annual total now for financing costs stands at $827 billion, or nearly $92 billion a month.

— Jeff Cox

Sarat Sethi told CNBC he bought Ferrari shares despite their EV misstep earlier this year.

The portfolio manager at Douglas C. Lane & Associates told "Halftime Report" that Ferrari's order book is sold out for the next two years, describing the brand as "a car you can't get enough of."

Sethi is not the only one bullish about Ferrari. Bank of America and Wolfe Research rate the luxury automaker a buy as well.

— Assiatou Hann

Investors are beginning to think the Federal Reserve may raise rates in July.

Odds on CME's FedWatch tool are now at more than 41% that the central bank raises interest rates by 25 basis points. That's up from 34% on Sunday. Earlier on Monday, odds were above 45% for a hike. On prediction market platform Kalshi, speculators now think there's a 36% chance that there is a 25 basis point hike at the Fed's July meeting, which will conclude on July 29.

The odds have risen as oil prices jumped on Monday, with U.S. oil prices crossing $75 per barrel, after President Donald Trump reinstated a navel blockade on Iranian ports near the Strait of Hormuz and imposed a 20% toll on all cargo traveling through the passageway.

All eyes are on the Consumer Price Index report for June, set to be released Tuesday morning. It is expected to show that inflation cooled in the month as energy prices fell amid easing tensions between the U.S. and Iran. But the inflation outlook could become more complicated if oil prices march higher again as the conflict in the strait resumes.

Read more here.

— Davis Giangiulio

Check out the companies making the biggest moves midday:

• Braiin — The AI platform stock surged 62% after the company launched its Aria, an AI agent designed for the real estate industry. "We believe this creates a scalable recurring software opportunity within a global real estate software market forecasted to reach approximately $32 billion by 2033," CEO Natraj Balasubramanian said in a statement.
• AppLovin — The software stock tumbled 12%, making it the worst-performing S&P 500 member to start the week. The decline also put AppLovin on pace for its sixth daily loss in seven sessions.
• Biogen — Shares added almost 2% after Truist upgraded the biotechnology name to buy from hold. Truist said the stock could see upside after Biogen releases the latest data from investigational drug trials.

Read here for the full list.

— Davis Giangiulio

European stocks recovered from early losses to close around the flatline, though tech stocks followed global peers lower. 

The pan-European Stoxx 600 index closed just below the flatline, with regional bourses and sectors painting a mixed picture.

London's FTSE 100 closed flat, while France's CAC 40 added 0.3% and Germany's DAX inched higher. Tech stocks lagged the broader index, finishing the day 0.5% lower.

— Joseph Wilkins

Citi hiked its price target on Apple to $365 per share from $315, saying the tech giant should continue to gain market share despite a slowing market. The new target implies 16% upside from Friday's close.

"We believe Apple's ability to implement selective price increases will help offset margin pressures, while its premium brand and loyal customer base should limit demand weakness," analyst Asiya Merchant said in a note Sunday.

The iPhone 18 launch in September will also be an important catalyst that could further strengthen investor sentiment, she said.

Apple is set to report earnings on July 30. Shares have gained 18% year to date.

— Michelle Fox

The S&P 500 began Monday's session in the red.

The broad market index fell 0.3% shortly after the opening bell, while the Nasdaq Composite dropped 0.7%. The Dow Jones Industrial Average traded around the flatline, however.

— Sean Conlon

Check out the companies making the biggest moves premarket:

• SK Hynix — U.S.-listed shares of the South Korean chipmaker tumbled 8% after their debut on the Nasdaq on Friday — when they popped nearly 13%. Seoul-listed shares of the company sunk more than 15%, posting their worst day in history.
• Memory and chips stocks — A slew of names were under pressure as investors again took another look at the viability of the artificial intelligence trade. The Roundhill Memory ETF (DRAM) was off 9% as Sandisk tumbled 5.5%, while Western Digital and Micron Technology were off 5%. Meanwhile, the iShares Semiconductor ETF (SOXX) was off 2%, while Intel declined more than 2.5% and Advanced Micro Devices fell 2%.
• CCC Intelligent Solutions — Shares of the software company were higher by 2% after a Bloomberg report said Elliott Investment Management has built a large stake in the company. The stake was taken before CCC began talks of a potential sale, Bloomberg reported.

Read the full list here.

— Davis Giangiulio

Benchmark Equity Research initiated coverage of Walt Disney Company on Monday with a buy rating and a $115 price target.

"We view Disney as one of the world's most powerful consumer engagement platforms, with globally recognized IP that can be monetized repeatedly across streaming, sports, parks, cruises, consumer products, gaming, advertising, and theatrical releases," the analysts wrote.

The analysts provided three reasons for initiating coverage, including Disney's streaming efforts. The company's direct-to-consumer business suffered a $4 billion operation loss about three years back but gained a $1.3 billion operating income in the 2025 fiscal year. The analysts also noted Disney's increase from 8 to 13 ships by 2031 will support the company's global expansion and "create one of the company's largest long-term capacity growth opportunities."

Benchmark noted Disney's value is driven by the company's efforts to engage and monetize consumers in all sectors despite the challenges television and theatrical releases face. 

— Ananya Chetia

Oil prices were higher on Monday morning after the U.S. and Iran traded strikes as they contest control of the Strait of Hormuz, one of the most important trade routes for global energy supplies.

Brent crude futures, the international benchmark, advanced 3.3% to $78.48 per barrel. U.S. West Texas Intermediate futures were last seen 3.3% higher at $73.78. Prices have eased off sessions highs after rising about 5% earlier. Read more.

— Spencer Kimball and Sam Meredith

Precious metals fell further on Monday as renewed tensions in the Middle East pushed oil prices higher, casting further doubt on the prospects of a sustainable ceasefire agreement between the U.S. and Iran.

Gold futures were last seen 0.78% lower, at $4,082.20, while spot prices dipped 1.19% to $4,070.95.

Having suffered its worst quarter since 2013, gold — traditionally seen as a safe haven asset and portfolio diversifier — has now shed more than 14% of its value in the last three months. Gold is down 6% year-to-date.

Silver futures, meanwhile, tumbled 1.72% to $59.13. Spot silver was off by more than 2.1% at $58.58.

Treasury yields were broadly flat on Monday after the ceasefire agreement between the U.S. and Iran came under increasing strain over the weekend.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — was broadly unchanged at 4.473%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, rose over 1 basis point to 4.223%. The longer-dated 30-year Treasury bond yield was flat at 5.071%.

The economic calendar this week is packed with a raft of data releases that could influence the trajectory of bond markets. 

Core inflation readings are due on Tuesday, while Kevin Warsh makes his first appearance before Congress as Fed chair later that afternoon. 

Consumer sentiment for July is due on Friday, which will lend some fresh insight into the strength of household finances. 

— Joseph Wilkins

The pan-European Stoxx 600 was 0.21% lower by 8:30 a.m. in London (3:30 a.m. E.T.), as tensions in the Middle East dragged the continent's sectors into mostly negative territory.

Oil and gas names led gains after the U.S. and Iran exchanged missile strikes, up 1.37%, boosted by growing uncertainty over the safe transit of the Strait of Hormuz. A majority of sectors were in the red, with construction stocks sliding 1.12%.

Regional bourses were more mixed. In Frankfurt, Germany's DAX fell 0.21% lower, as the French CAC 40 slipped 0.25% in Paris. However, the U.K.'s FTSE 100 in London was 0.11% higher, lifted by the energy and housebuilding sectors, while Italy's FTSE MIB added almost 0.1%.

— Hugh Leask

Taiwan Semiconductor Manufacturing Co. reported a 67.9% year-on-year rise in its June sales on Monday, ahead of its second-quarter earnings release later this week.

For the first half of 2026, TSMC's total revenue reached 2.4 trillion new Taiwan dollars (nearly $75 billion), representing a 35.6% increase compared to the same period in 2025. TSMC reported June revenue of NT$ 442.68 billion — a 6.2% increase from the previous month.

The Taiwanese chip giant's shares rose 1% Monday, while the benchmark Taiex closed little changed at 45,380.52.

— Jenny Lee

European semiconductor names tumbled in early trade, following Asian chipmakers into negative territory as investors' retreat from tech names spread.

Germany's Infineon Technologies was down 2.3% shortly after the opening bell, while Dutch mainstays ASMI and ASML dipped 2.1% and 1.5%, respectively. STMicroelectronics dropped 2.4%.

The slides came after SK Hynix's South Korean-listed shares plunged more than 15% on Monday following its Friday Nasdaq debut, as Samsung slipped 10.7%.

— Hugh Leask

South Korea's Kospi fell almost 9% to close at 8,806.93, dragged by index heavyweight and chip giant SK Hynix.

SK Hynix shares tumbled more than 15% in Seoul on Monday to clock their worst day after the chipmaker's strong Nasdaq debut, as investors booked profits and weighed demand for artificial intelligence memory chips against the stock's sharp gains this year.

The small-cap Kosdaq fell 4.6%, ending the trading day at 799.36.

Japan's Nikkei 225 lost 1.92% to 67,242.73 while the Topix closed 0.71% lower at 4,007.49.

Australia's benchmark S&P/ASX 200 was little changed at 8,808.5.

— Lee Ying Shan

Shares in Akzo Nobel rose 3.3% in early trade on Monday after Nippon Paints offered to buy the Dutch-listed paint maker's decorative paints business for 7.5 billion euros  ($8.6 billion).

Akzo Nobel, whose brands include Dulux, previously rejected a joint cash takeover offer from the Japanese company alongside Sherwin-Williams, worth 12.5 billion euros in May.

In a statement, Akzo Nobel said its board of management and supervisory board continue to unanimously recommend a merger of equals between AkzoNobel and Axalta Coating Systems.

— Hugh Leask

European stocks are set to follow Asian markets into the red after the U.S. and Iran traded fresh missile strikes over the weekend.

Stoxx 50 futures were seen decisively lower, sliding about 0.97%. Germany's DAX is set to start the new trading week down 1.12%. The French CAC 40 is expected to open Monday's trading 0.82% lower, with the U.K.'s FTSE 100 about 0.39% lower, and the Italian FTSE MIB off 0.67%.

— Hugh Leask

Oil rose Monday amid renewed hostilities between the U.S. and Iran as both countries contest for control over the Strait of Hormuz, one of the most significant waterways for global energy supplies.

Futures for international benchmark Brent crude for September delivery and U.S. West Texas Intermediate futures for August both rose 4.1% to $79.12 and $74.33 per barrel, respectively.

"Recent attacks highlight how uncertain Gulf exports remain and that a serious re-escalation could re-intensify the short run upside risk to oil prices," Goldman Sachs said in a note.

Another wave of strikes was launched by the U.S. military on Sunday against Iran after, hitting 140 targets on Saturday, according to U.S. Central Command, following the Islamic Revolutionary Guard Corps' attack on a container ship transiting Hormuz.

— Justina Lee

Traditional safe-haven assets fell Monday even as renewed hostilities between the U.S. and Iran over the weekend raised geopolitical concerns.

The 10-year U.S. Treasury yield rose 1 basis point to 4.585% as bond prices declined, while spot gold fell 1.22% to $4,070.21 an ounce. Silver dropped 2.8% to $58.18 per ounce.

Washington and Tehran exchanged airstrikes and Iran declared the Strait of Hormuz closed, though U.S. President Donald Trump disputed that claim and said the key waterway remained open to commercial traffic.

In a note published Friday, Standard Chartered highlighted that gold remains its preferred hedge against geopolitical uncertainty. The bank also noted that U.S. real yields are near their highest since 2008 and expects the Federal Reserve to keep rates on hold through 2026, a backdrop that can reduce the appeal of non-yielding bullion.

— Lee Ying Shan

Shares of LG Electronics rose over 5%, following a report by Seoul Economic Daily that the company will build AI server racks for Nvidia.

The report comes as both Nvidia and LG seek to strengthen their collaboration in AI capabilities. In June, Nvidia said it was building an AI factory "to accelerate LG Group's next wave of AI-driven businesses," which includes robotics and autonomous driving.

"The combination of LG's production technology data and know-how from global manufacturing sites with NVIDIA's AI infrastructure and digital twin technologies will help enhance AI-driven manufacturing AI competitiveness," Nvidia said last month.

— Justina Lee

Shares of Samsung Electronics fell more than 6%, as Asian chip stock came under pressure Monday, with rival SK Hynix dropping 10% amid a broader decline in regional markets.

Samsung Electronics is also reportedly planning to bring forward operationalizing its first semiconductor fabrication plant in Yongin, south of Seoul, to 2029 from 2030–2031 earlier.

The company plans to build its first fabrication plant at the Yongin Semiconductor National Industrial Complex, and will be constructing a total of six semiconductor production facilities.

Last month, Samsung Electronics and SK Hynix pledged to invest hundreds of billions of dollars to strengthen South Korea's semiconductor ecosystem.

Japan's SoftBank Group, Renesas, Tokyo Electron and Advantest were all trading lower.

— Jenny Lee

SK Hynix shares tumbled more than 10% in Seoul on Monday after the chipmaker's strong Nasdaq debut Friday, as investors locked in profits and weighed whether surging demand for artificial intelligence memory chips justified the stock's lofty run.

The South Korean memory-chip maker had jumped 13% in its Wall Street debut on Friday, reflecting strong appetite from U.S. investors for AI-linked semiconductor stocks. 

The decline on Monday reflects a mix of profit-taking and uncertainty over how the U.S.-listed shares should be valued relative to the Korean stock, with analysts saying the ADR debut has effectively created a new benchmark for investors to assess the company's valuation.

"Everybody's really confused about what's going to happen to the memory demand and where the fair price is," Daniel Yoo, global strategist at Yuanta Securities, said on "Squawk Box Asia." "It's all about how much demand is there versus how much supply is going to come in ... [and] what kind of multiple you will be getting."

— Lee Ying Shan

Nippon Paint has made multiple offers in the past month for Akzo Nobel's decorative paints business, according to Bloomberg.

The offers include a proposal valuing the unit at about 7.5 billion euros ($8.55 billion) last week, Bloomberg said, citing people familiar with the matter.  

The news come ahead of Nippon's second-quarter earnings, which will be released on Aug. 7.

Founded in 1881, the Japanese paint manufacturer has a market presence in more than 15 countries across two continents with 38,500 staff, according to the company.

Nippon Paint shares were down 1%.

— Justina Lee

Shares of SK Hynix listed fell 5% in South Korea on Monday after the chipmaker surged 13% in its Nasdaq debut.

Phillip Wool, chief research officer at Rayliant Global Advisors, said the recent weakness in South Korean AI stocks largely reflected "prudent risk management" as investors trimmed positions that had grown significantly after a strong rally, rather than a loss of confidence in the AI theme.

He added that the next phase of AI, which includes agentic AI, robotics and other real-time applications, should remain a catalyst for SK Hynix because they require high-bandwidth memory chips.

While he cautioned that the biggest long-term risk is a slowdown in AI infrastructure spending by hyperscalers, Wool told CNBC on Monday that HBM demand remained "extremely robust."

— Lee Ying Shan

Asia-Pacific markets opened higher Monday amid escalating tensions in the Middle East after the U.S. and Iran exchanged fresh military strikes over the weekend and Tehran announced the closure of the Strait of Hormuz.

Japan's benchmark Nikkei 225 added 0.28%, while the Topix advanced 0.72%. South Korea's Kospi was up 0.58%, while the small-cap Kosdaq jumped 1.84%.

Australia's benchmark S&P/ASX 200 was flat at the open.

— Lee Ying Shan

Futures for Japan's benchmark Nikkei 225 fell in Chicago as tensions in the Middle East rose following fresh U.S.-Iran military strikes and Tehran's closure of the Strait of Hormuz.

Tehran attacked American facilities across several Gulf states and announced the closure of the strategically important Strait of Hormuz over the weekend, while the U.S. struck Iranian assets.

Futures for Japan's benchmark Nikkei 225 were at 68,965, down 0.5%, but higher than the index's last close of 68,557.73.

Australia's S&P/ASX 200 futures last traded at 8,814, while the index closed at 8,806 on Friday.

Futures for Hong Kong's Hang Seng index were last at 24,238, higher than its close of 24,175.12.

— Lee Ying Shan

Mark Newton, head of technical strategy at Fundstrat, said in a note Friday that "near-term US equity trends remain bullish, and to me, the technical picture strengthened [last] week, showing good follow-through after Wednesday's successful tests of intraday support and reversal higher in SPX and QQQ. I expect that a breakout in SPX is imminent, though QQQ will take more time."

— Fred Imbert

Here's how the major U.S. stock indexes fared last week:

• Dow: fell 0.5%, breaking a four-week win streak with its worst weekly performance since March 27 — when it fell 0.9%.
• S&P 500: gained 1.2% for its fourth weekly advance in five weeks.
• Nasdaq Composite: climbed 1.7% for its fourth weekly advance in five weeks.
• Russell 2000: dropped 0.6%, marking its second negative week in a row for the first time since its four-week losing streak ending March 20.

— Christopher Hayes