Stock Market Today, July 8: Stocks Slide and Dow Drops 1.5% as Middle East Tensions Spike

At midday, the S&P 500 (^GSPC 0.68%) fell 0.91% to 7,435.81, the Nasdaq Composite (^IXIC 0.42%) declined 0.92% to 25,584.75, and the Dow Jones Industrial Average (^DJI 1.23%) lost 1.51% to 52,126.81 as renewed U.S.-Iran tensions triggered another oil spike and geopolitical anxiety.

Gold prices fell 1.87% to $4,030.68, and the 10-Year Treasury yield rose 0.06% to 4.59% as of midday. Most sectors fell, with just the energy sector and consumer defensive stocks in the green.

Today’s biggest moves

Penguin Solutions, Inc. surged following a significant earnings beat, while Exxon Mobil Corporation rallied as Middle East uncertainty drove crude prices higher. Meanwhile, Intel Corporation dropped over 5% as tech stocks faltered. Leading chipmaker Micron Technology, which has fallen almost 20% in the past five days, showed some signs of paring losses. Navitas Semiconductor Corporation shares tumbled over 9%  after a competitor filed a patent infringement lawsuit.

What this means for investors

Geopolitical tensions once again pressured equities this morning amid a reescalation of U.S.-Iran violence. The Dow dropped dramatically as global energy concerns overshadowed corporate news. Energy producers gained as oil prices soared — West Texas Intermediate crude jumped 7.85% to almost $76 a barrel following fresh strikes in the Middle East.

The cautious mood weighed on tech stocks as well, with increasing inflation concerns adding to risk-off sentiment. Artificial intelligence stocks have been struggling, and Samsung Electronics’ earnings on Tuesday were not strong enough to reassure investors.