U.S. markets closed sharply lower on Monday, with the Nasdaq dropping more than 1.5% amid a surge in crude oil prices following the continued exchange of attacks between the U.S. and Iran. U.S. Central Command said it completed a new wave of offensive strikes against Iran, hitting dozens of targets at multiple locations with precision munitions. Tehran responded by attacking Gulf Arab states, including Bahrain, Kuwait, Qatar, Jordan and Oman, further straining the fragile ceasefire between the two countries. Meanwhile, sentiment remained weak after President Donald Trump stated that the crucial Strait of Hormuz remains open but said he is reinstating the U.S. blockade of Iranian ports. Trump also said the U.S. would be reimbursed at a rate of 20 percent on all cargo shipped through the strait.
On the sectoral front, semiconductor stocks witnessed substantial weakness amid a slump in SK Hynix, with the Philadelphia Semiconductor Index plunging 4.8%. Considerable weakness was also visible among computer hardware stocks, as reflected by the 3.3% decline in the NYSE Arca Computer Hardware Index. Airline, gold, and networking stocks also witnessed significant weakness, while energy stocks moved sharply higher in line with the rise in crude oil prices.
Nasdaq dragged 408.43 points or 1.55 percent to 25,873.176, S&P 500 fell 60.05 points or 0.79 percent to 7,515.34 and Dow Jones Industrial Average decreased 138.37 points or 0.26 percent to 52,498.64
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