Markets Fall as Chip Stocks Drop and Oil Prices Rise

U.S. stock indexes closed lower after semiconductor shares led the decline and oil prices rose. The selling hit multiple chip companies and an exchange-traded fund that tracks the sector. Micron shares fell 7 percent. KLA, Marvell Technology, Broadcom, and AMD also moved lower. The VanEck Semiconductor ETF lost more than 5 percent.

Geopolitical Pressure Reports that Iran attacked a Qatari liquefied natural gas tanker near the Strait of Hormuz added to the pressure. Brent crude rose more than 2 percent and traded above $73 a barrel. The weakness in chip-related stocks began overseas. South Korea’s Kospi index fell nearly 5 percent, led by a decline in Samsung Electronics.

The company reported a jump in second-quarter profit, yet concerns about future spending and demand weighed on the shares.

Reports also surfaced that DeepSeek is developing its own AI chip. If the effort succeeds, it could reduce reliance on suppliers such as Nvidia and Samsung. Nvidia shares finished lower. By the closing bell, markets faced rising oil prices, higher bond yields, and growing inflation expectations.

The dollar drifted sideways for much of the session before surging into the close. That late strength limited an early gold rally and sent the metal back toward the $4,100 level. Bitcoin traded between $62,500 and $64,500 before finishing little changed.

A domestic bullish cycle that began in November 2023 ended on April 3, 2025, after a downturn tied to tariff policy. Markets later recovered, and a new domestic buy signal took effect on May 20, 2025. An international buy signal followed on May 8, 2025.

Bears controlled most of the session on July 7, 2026. The domestic trend-tracking index closed 9.26 percent above its moving average, while the international index finished 7.45 percent above its moving average.