The conflict between the US and Iran has escalated, with the US hitting Iranian targets for the ninth straight day. Iranian attacks have now killed at least three US soldiers. Traffic through the Strait of Hormuz has slowed to a trickle, and Brent crude rose back above $90 per barrel on Monday for the first time since early June before paring these gains.

Global Markets React

The futures market thinks there’s a two-thirds chance the Fed will pull the trigger on higher interest rates by September. Shaky stocks are adding another big cloud to the horizon. South Korean markets were closed on Friday, but the chip selling resumed today, with the KOSPI down another 3%. Stocks elsewhere were calmer first thing, as Tokyo was on holiday.

While US futures are up slightly before the bell, this follows a rough few weeks for tech stocks. High-flying US chip stocks were down 10% last week and 20% from their nosebleed record highs in June, suggesting the market may be sobering up from the AI frenzy. It’ll now turn its eyes to the big hyperscaler earnings out this week and next. First up is Alphabet, which reports on Wednesday, with the likes of Intel and Tesla also out this week.

Meanwhile, China’s latest AI development from its Moonshot programme offers a glimpse at how the world’s second-biggest economy is keeping pace with the rapid tech transformation.

In the UK, Andy Burnham finally takes over as UK Prime Minister on Monday. The market will be keenly interested in his cabinet picks and choice of finance minister, with relatively conservative Home Secretary Shabana Mahmood expected to get the nod.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.