U.S. stocks turned red in early trading, with major indexes down almost 1%, as fresh U.S.-Iran military escalation and surging oil prices drove a defensive rotation out of risk assets.
Key Highlights
- Delta Air Lines (DAL) and United Airlines (UAL) both fell more than 3%
- Chip stocks extended Tuesday’s decline, led lower by Micron, KLA, Marvell, Broadcom and AMD
- The VanEck Semiconductor ETF (SMH) dropped more than 3%
- Energy and defense names outperformed as investors rotated toward safety
- Amazon sought to raise at least $25 billion in bonds amid growing fatigue over AI-related financing
Why It Matters
The sell-off highlights how sensitive markets remain to geopolitical shocks even amid a resilient earnings season, with AI-linked semiconductor names bearing the brunt of the rotation out of risk.
What to Watch
Delta Air Lines reports earnings this week, offering an early read on how airlines are managing fuel-cost volatility.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making investment decisions.
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