S&P 500 Drops on Iran Strikes; Chip Rout Hits Asia
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- S&P 500 futures dropped 0.9% and Nasdaq-100 futures fell 1.6% early Friday after the U.S. completed its sixth consecutive night of strikes against Iran, hitting dozens of military targets including logistics and maritime infrastructure.
- Dow Jones Industrial Average futures slipped 420 points (0.8%), as the escalating standoff fractured last month's fragile truce and disrupted energy flows through the Strait of Hormuz, which typically handles about 20% of the world's oil traffic.
- Asia-Pacific markets sold off sharply Friday — Japan's Nikkei 225 slipped 5.2%, the Topix declined 3.7%, and Hong Kong's Hang Seng dropped 2.2% — while South Korea markets were closed for a public holiday.
- The VanEck Semiconductor ETF slid nearly 4% Thursday as Taiwan Semiconductor, Marvell Technology, STMicroelectronics, and Micron all declined; SMH is now down 6.9% for the week, on pace for its third weekly decline in four weeks.
- Gold and Treasury prices rose as safe-haven demand spiked — spot gold climbed 0.5% to $43,987.92 an ounce, while the 10-year U.S. Treasury yield fell two basis points to 4.549% amid Iran's threat of retaliation.
- SoftBank shares dropped 9.2% in Tokyo, with Tokyo Electron losing 9% and Advantest sliding 9.4% as the AI/chip selloff spread across Asia; Kioxia separately plunged 14% after a Texas jury ordered it to pay $229 million in a Viasat patent infringement verdict.
- Ned Davis Research's Ed Clissold told CNBC the market "hasn't fallen apart," calling a major bull peak unlikely even as the broader index sits just 1% below its early-June all-time high.
Why it matters: Chip investors face a double squeeze — the SMH is down 6.9% for the week as the Iran truce fractures and disrupts energy flows through the Strait of Hormuz, which handles 20% of world oil traffic. Investors are buying gold and Treasurys as safe havens amid Iran's threat of retaliation.
