Tech stocks fell sharply Monday, leading a broad market decline after Samsung Electronics released disappointing quarterly earnings. The technology-heavy Nasdaq Composite dropped 1.8%, while the S&P 500 slipped 0.9%. The Dow Jones Industrial Average lost 210 points.
Samsung reported lower-than-expected profits, citing weak demand for memory chips and smartphones. The South Korean tech giant’s results cast a shadow over the semiconductor sector, dragging down shares of major U.S. chipmakers. Intel and Advanced Micro Devices both fell more than 3%.
Investors also reacted to rising geopolitical tensions in the Middle East. Oil prices strengthened after a series of attacks on commercial ships in the Persian Gulf. Brent crude, the international benchmark, rose 2.5% to $78 a barrel. West Texas Intermediate crude gained 2.3%.
The attacks raised concerns about potential supply disruptions from one of the world’s key oil producing regions. The U.S. Navy said it was assessing the situation, and maritime security firms warned vessels to exercise caution. Energy stocks, however, climbed on the price increase.
The broader market selloff reflected growing anxiety about corporate earnings season. Analysts expect many companies to report their weakest profit growth in over a year, as inflation and higher interest rates continue to squeeze margins.
Bond yields edged lower as traders moved into safer assets. The yield on the 10-year Treasury note fell to 4.31% from 4.36% on Friday. The U.S. dollar weakened against major currencies, while gold prices rose 0.5% as a haven trade.
Trading volume was slightly above average, suggesting active repositioning by institutional investors ahead of key economic data later this week. The Labor Department is set to release its June consumer price index report on Wednesday, which could influence the Federal Reserve’s next policy move.
