Quick Market Snapshot
IBM shares plummeted 18% following disappointing Q2 financial results that fell short on both profit and sales
Dow Jones futures tumbled more than 400 points; Nasdaq futures gained ground as technology sector attempted a rebound
Third consecutive night of U.S. military action against Iran sent crude oil prices surging
Brent crude jumped 4.3% to reach $86.90 per barrel; WTI climbed 3.1% to $80.52
Traders preparing for June inflation report, Federal Reserve Chair remarks, and quarterly results from leading financial institutions
Shares of IBM tumbled 18% during Tuesday’s pre-market session following the technology giant’s announcement of preliminary second-quarter financial results that disappointed on both the top and bottom lines. As a component of the Dow Jones Industrial Average’s 30-stock roster, IBM’s substantial decline weighed heavily on the blue-chip index. International Business Machines Corporation, IBM
Futures tied to the Dow Jones Industrial Average declined 441 points, representing a 0.8% drop, during early morning trading activity. Futures for the S&P 500 decreased 0.1%. Meanwhile, Nasdaq 100 futures defied the broader market weakness, advancing 0.5% as technology shares attempted to recover from prior session losses. The previous trading day witnessed declines across all three benchmark indexes.
Semiconductor sector weakness combined with climbing energy prices drove the downturn, particularly after President Trump’s announcement regarding the reinstatement of a naval blockade targeting the Strait of Hormuz. Crude Prices Surge as Middle East Tensions Escalate
For the third consecutive evening, U.S. military forces conducted strikes against Iranian targets, propelling crude oil prices higher during Tuesday’s early trading hours. Brent crude futures surged 4.3% to reach $86.90 per barrel.
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West Texas Intermediate advanced 3.1% to $80.52 per barrel. Washington also revealed its intention to begin implementing the Strait of Hormuz blockade enforcement Tuesday afternoon, including a 20% levy on all shipping cargo transiting the strategic waterway. This development intensified worries about potential energy supply disruptions contributing to inflationary pressures. BREAKING: President Trump says the US is reinstating its blockade of the Strait of Hormuz for Iranian ships and customers. Trump says the US will now be known as “The Guardian of the Strait of Hormuz” and will be “reimbursed” at a rate of 20% on all cargo shipped. It appears… pic.twitter.com/MtjidgWMMM
— The Kobeissi Letter (@KobeissiLetter) July 13, 2026
Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, offered perspective on the developing situation. He noted that the continuing military engagement demonstrates the challenges facing any sustainable agreement between the United States and Iran, though emphasized that neither nation appears interested in pursuing all-out warfare.
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Artificial intelligence semiconductor stocks have faced mounting pressure recently. SK Hynix’s newly listed American depositary receipts extended their decline following the South Korean chipmaker’s U.S. market debut last Friday. The sector has been buffeted by a combination of interest rate speculation, corporate capital expenditure uncertainty, and investor profit-taking activity.
Critical Economic Data and Financial Sector Results Approaching
Market participants were focused on the June Consumer Price Index release, scheduled for 8:30 a.m. Eastern Time. Economic forecasters anticipated that inflation metrics would show moderation during June. Despite these expectations, bond market traders had already been increasing wagers on a potential Federal Reserve interest rate increase at the central bank’s July 28-29 policy meeting. Federal Reserve Chair Kevin Warsh was scheduled to deliver congressional testimony addressing monetary policy strategy and economic conditions, introducing another potential catalyst for market volatility during an already event-packed session.
Regarding corporate earnings announcements, JPMorgan, Goldman Sachs, Bank of America, Wells Fargo, and Citigroup were all scheduled to unveil second-quarter financial performance. Wall Street analysts projected that the nation’s largest banking institutions would report some of their most impressive quarterly results in their operating histories. The convergence of geopolitical instability, inflation data uncertainty, and major earnings releases positioned Tuesday as among the most intensely monitored trading sessions in recent memory.
