US-Iran Tensions Fuel Mixed Markets as Oil Prices Plummet

The US-Iran tensions took center stage on Monday as stocks delivered mixed signals. Oil prices plummeted, but chipmakers continued their downward trend.

President Donald Trump's warning of 'very strong military action' against Iran if talks between the two countries are unfruitful sparked optimism in the markets. The Dow Jones Industrial Average gained 0.51%, while the S&P 500 was largely unchanged, gaining 0.02%. However, the tech-heavy Nasdaq Composite underperformed, dropping 0.18% due to the decline of chipmakers.

The VanEck Semiconductor ETF fell by about 2%, dragged down by AMD, Teradyne, and Micron among others. Despite the mixed signals, most stocks bounced back from their session lows hit earlier in the day.