HG MARKETS: 

U.S. stock futures extended losses in early Monday as escalating tensions between the United States and Iran continued to unsettle investors. Market sentiment was also tempered by caution ahead of a packed week of second-quarter earnings reports. Technology shares looked set to lead declines after a selloff in major Asian semiconductor stocks signaled further weakness, fueled by profit-taking and concerns over upcoming earnings.

Fresh military exchanges between the U.S. and Iran over the weekend, coupled with mixed messaging on the Strait of Hormuz, pushed oil prices sharply higher and reinforced risk-off sentiment across global markets. S&P 500 futures were down 0.6% at 7,577.5, Nasdaq 100 futures had tumbled 1.4% to 29,602., while Dow Jones futures edged 0.26% lower to 52,768.

The U.S. Central Command (CENTCOM) reported conducting fresh strikes on Iran over the weekend, with Tehran reportedly retaliating by launching attacks on U.S. military installations in the region. Conflicting statements also emerged over the Strait of Hormuz, as Iran claimed the strategic shipping route had been closed to commercial traffic, while CENTCOM insisted the passage remained operational.

The renewed hostilities underscored escalating tensions between Washington and Tehran after President Donald Trump declared last week that the ceasefire had collapsed. Despite the escalation, Trump said Iran had expressed interest in reopening diplomatic talks.

Crude oil prices climbed sharply on Monday after renewed attacks in the Middle East intensified concerns over energy-driven inflation, potentially strengthening the case for a more hawkish Federal Reserve.

Steep declines in Nasdaq futures signaled significant weakness in technology stocks on Monday, as a broad selloff in Asian semiconductor shares looked set to spill over into U.S. markets. SK Hynix led the losses, tumbling as much as 14% in Seoul trading after its American Depositary Receipts had surged nearly 13% during their Nasdaq debut on Friday.

The sharp reversal reflected profit-taking and persistent concerns that artificial intelligence-driven optimism had pushed semiconductor valuations to unsustainable levels.

U.S. equities ended Friday’s session on a positive note, with the S&P 500 closing within reach of an all-time high, supported by the robust Nasdaq debut of SK Hynix’s American Depositary Shares. The Nasdaq Composite and Dow Jones Industrial Average each gained roughly 0.3%.

Markets are now turning their focus to the start of the second-quarter earnings season, with leading lenders including JPMorgan Chase, Bank of America, Goldman Sachs, Wells Fargo, and Citigroup due to report quarterly earnings on Tuesday.