The S&P 500 today is trading lower this Monday (13), as investors react to rising tensions in the Middle East after the current president of the United States, Donald Trump, announced the resumption of the blockade on Iranian navigation in the Strait of Hormuz. The measure boosted oil prices and reduced appetite for risk assets, putting pressure on U.S. stock markets.
At the time of publication, the S&P 500 was down 0,70%, at 7.522,52 points. The Dow Jones Industrial Average was falling 0,39%, to 52.432,22 points, while the Nasdaq Composite posted the biggest loss among the main indexes, down 1,37%, at 25.921,85 points.
The sell-off also hit smaller-cap companies. The Russell 2000 was down 0,72%, at 2.956,50 points, while the volatility index VIX was advancing 9,59%, to 16,47 points, indicating greater investor demand for protection amid market uncertainties.
On Truth Social, Trump announced the new measure involving Iran and declared:
"We are reinstating the IRANIAN BLOCKADE, so called because it only prevents the entry or exit of ships or clients from Iran".
He then added:
"The U.S. will, from now on, be known as ‘The GUARDIAN OF THE STRAIT OF HORMUZ,’ but, as such, and as a matter of JUSTICE, will be reimbursed, at a rate of 20% on all cargo shipped, for all costs necessary to carry out the job of providing security to this very unstable region of the world".
The statement heightened concerns about global energy supply. WTI crude oil futures contracts for August delivery were rising 5,18%, to US$ 75,11 per barrel, after the clashes between the United States and Iran over the weekend increased the risk to one of the most important maritime routes in global trade.
In the alternative assets market, Bitcoin was also following the risk-off movement. The largest cryptocurrency on the market was trading at US$ 62.242,77, down 2,95% on the day.
Gold, traditionally considered a safe-haven asset, was also trading lower. The contract was trading at US$ 4,009.20, down 2.54%, as investors adjusted positions amid the sharp rise in oil prices.
Semiconductor stocks were among the biggest decliners of the trading session. SK Hynix gave back part of the gains recorded after its debut on the Nasdaq, while companies such as Micron Technology, Sandisk, Seagate Technology, AMD and Intel were also pressured by selling.
In addition to geopolitical tensions, investors are monitoring the start of the corporate earnings season in the United States. Institutions such as JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo are reporting their results throughout the week. Companies such as Netflix, Johnson & Johnson and UnitedHealth are also among the highlights on the calendar.
Another market focus is the release of the June consumer price index (CPI), scheduled for Tuesday. The indicator may offer new clues about the path of inflation in the United States and influence expectations for the monetary policy of the Federal Reserve. On the same day, the institution's president, Kevin Warsh, is expected to testify before the House Financial Services Committee to present the semiannual monetary policy report.