US Stocks Plummet on Rate Hike Fears as Chip Sector Defies Trend

The US stock market took a hit last week as strong nonfarm payroll data reignited concerns over interest rate hikes. The S&P 500 fell 0.38% to 7,718.60 points, while the Nasdaq and Dow Jones Industrial Average declined 0.29% and 0.51%, respectively.

The Philadelphia Semiconductor Index bucked the trend, however, surging 3.37% to 11,735.26 points as funds converged heavily into the chip sector due to solid industry fundamentals. Stocks such as Nvidia and Broadcom saw significant gains.

The escalation of US-Iran tensions in the Strait of Hormuz has added a geopolitical premium to oil prices, with WTI crude oil opening higher in early Asian trading on Monday. This week's focus will be on August CPI data and the evolution of the conflict.