Asian Markets Rebound Amid US-Iran Tensions; Wall Street Futures Rise

Global markets opened with mixed reactions following a tenth consecutive night of US airstrikes against Iran. Asian stock exchanges showed recovery after weekend losses, with Tokyo rising about 2.5%, Seoul gaining over 3%, Shanghai up 0.8%, and Hong Kong slightly down by 0.1%. Meanwhile, US stock futures climbed up to 0.8%.

On Wall Street, the first trading day of the week closed with declines amid escalating US-Iran tensions and geopolitical uncertainty. The S&P 500 fell by approximately 0.2%, the Dow Jones dropped 0.6%, and the Nasdaq ended just below its baseline. Defensive sectors such as healthcare, materials, infrastructure, and consumer staples declined, while technology and communication services sectors rose modestly. Energy stocks increased by 0.6% due to renewed concerns over global oil supply disruptions.

Chip stocks showed a modest rebound after last week’s sharp declines, with ETFs like SOXX and DRAM rising 0.5% and 0.7%, respectively. Notable gains were seen in Micron, Sandisk, Intel, and Broadcom. AMD’s shares rose following its announcement of the Helios AI chip system, which will be supplied to an expanding client list including Microsoft, competing with Nvidia’s popular AI systems. Intel plans further layoffs focused on its data center division, having already cut over 5,000 US jobs.

Archer Aviation’s stock surged about 20% after announcing plans to obtain certification for its flying taxis ahead of the 2028 Los Angeles Olympics. The company also unveiled a hybrid-electric VTOL platform for both commercial and defense uses.

In trade news, President Trump signed proclamations imposing 50% tariffs on various Canadian imports, including vehicles, alcohol, and dairy, citing unfair trade practices. These tariffs are set to take effect 30 days after signing.

The Israeli shekel weakened about 0.5% against the dollar, closing at 3.05 shekels per dollar, pressured by Wall Street declines, interest rate cuts in Israel, and a stronger dollar amid regional security concerns and rising oil prices. Brent crude oil traded near $89 per barrel and WTI near $82, with prices fluctuating due to ongoing Middle East tensions. President Trump warned Iran on social media of severe retaliation for any American casualties. Meanwhile, Yemen’s Houthi rebels declared a naval blockade against Saudi Arabia, threatening further disruptions to oil shipping routes through the Bab el-Mandeb strait.

Looking ahead, Alphabet (Google) and Tesla are scheduled to report Q2 earnings tomorrow, followed by Intel on Thursday, all closely watched for insights into the AI sector’s resilience.