Stocks Pressured as US-Iran Hostilities Resume

Stock markets pressured as U.S.-Iran hostilities resume amid renewed concerns about energy and rates. The S&P 500 fell 0.49%, the Dow declined 0.96%, and the Nasdaq 100 eased 0.19%, while September E-mini S&P and Nasdaq futures also moved lower. The selloff followed President Trump’s declaration that the ceasefire with Iran is over and after U.S. strikes against Iran in response to attacks on ships transiting the Strait of Hormuz. Oil prices jumped to a two-week high, with WTI rising more than 4% as investors price higher inflation expectations and push bond yields higher; the 10-year Treasury yield reached a 1.5-month high of 4.58%. Economic data showed U.S. MBA mortgage applications down 2.2% for the week ended July 3, and the average 30-year fixed rate rose to 6.58%. Despite the volatility, Bloomberg Intelligence forecasts suggest Q2 earnings could rise about 23%, and AI spending is expected to drive nearly 60% of S&P 500 EPS growth. Markets also priced a 32% chance of a 25 basis-point Fed hike at the July 28–29 meeting.