- US stocks slip as semiconductor shares retreat ahead of major AI earnings updates.
- Oil prices rise as US-Iran tensions increase concerns over energy supplies.
- UK markets fall as higher gilt yields weigh on investor sentiment.
US stocks moved lower on Monday as investors took profits in semiconductor shares ahead of a key week for technology earnings, while rising tensions between the US and Iran pushed oil markets back into focus.
The Dow Jones Industrial Average declined 0.6%, while the S&P 500 fell around 0.2%. The Nasdaq Composite finished slightly lower after another unsettled session for chip stocks, which have been among the biggest beneficiaries of investor enthusiasm around artificial intelligence.
Markets are now searching for fresh momentum in the AI trade after recent rotations between sectors reduced some of the previous gains seen across technology shares.
Earnings from Alphabet, Intel, IBM and Tesla due later this week will be closely watched, with investors looking for evidence that heavy spending on AI infrastructure is beginning to deliver stronger financial returns.
The latest results are expected to provide a clearer picture of whether companies are turning AI investment into measurable growth rather than simply increasing spending on new technology.
Oil prices jumped higher following further military exchanges between the US and Iran over the weekend. The US continued strikes against Iran, while Tehran responded by targeting American allies in the region, including Kuwait.
The conflict has increased concerns over energy supplies, particularly after President Donald Trump warned that Iran would face consequences following the deaths of US military personnel. Additional pressure came from Yemen’s Houthi militia, which announced a blockade against Saudi Arabian oil exports.
Despite the latest rise, Brent crude remains below its previous April and May highs as traders assess whether alternative shipping routes can reduce disruption risks linked to the Strait of Hormuz.
Bond markets also remained a focus for investors, with Treasury yields moving higher. The US 10-year Treasury yield climbed to 4.59% from 4.53% on Friday, while the 30-year yield increased to 5.11% from 5.06%, keeping attention on the impact of elevated borrowing costs.
Away from Wall Street, UK markets ended lower as rising gilt yields affected sentiment. The FTSE 100 closed down 0.7%, while the FTSE 250 declined 0.3% as investors weighed domestic political changes and wider economic pressures.
Computacenter was the strongest performer on the FTSE 100, gaining 5.6% after Berenberg upgraded the technology services company to a ‘buy’ rating. The broker said stronger momentum in North America and the UK, alongside improving conditions in Germany, could support further earnings growth.
Ryanair shares fell 4.6% after the airline reported a 34% decline in quarterly profit after tax to €538 million. Although passenger numbers increased 6% to 61.3 million and revenue rose to €4.38 billion, lower average fares and higher costs affected results.
On the FTSE 250, Big Yellow Group slipped 0.3% despite revenue rising 3.3% to £53.2 million during its first quarter, with the self-storage company warning that economic uncertainty could continue to affect trading conditions.
Meanwhile, AIM-listed Sunrise Resources rose 11% after announcing its Lake Copper-Silver-Gold Project in Nevada, located in Churchill County’s Lake Mining District, an area associated with several major gold and silver deposits.
