Market Rundown
U.S. equities closed lower as renewed U.S.-Iran tensions pushed oil prices and Treasury yields higher.
Energy, utilities, and consumer staples outperformed, while technology lagged amid continued weakness in semiconductor stocks.
South Korea's KOSPI fell nearly 9% overnight, reflecting pressure on global semiconductor shares.
Investors now turn their attention to June CPI and the start of second-quarter earnings season.
Inflation
June CPI will be released Today, with headline inflation expected at 3.8% year over year and core CPI at 2.9%.
Markets continue to price in one Federal Reserve rate hike this year and another in 2027.
Recent data show core goods inflation has moderated and labor-market conditions remain balanced, while oil prices remain below their March highs.
Second-quarter earnings season begins today, led by Bank of America, JPMorgan Chase, Goldman Sachs, Wells Fargo, and Citigroup.
S&P 500 earnings are expected to grow approximately 22% year over year, led by technology and energy.
Full-year S&P 500 earnings are forecast to increase 24%, supported by continued AI investment and resilient corporate profitability.
