Nasdaq Slips as Geopolitical Risk Rattles Tech and Energy Markets

Intel and other major semiconductor players led the tech retreat on Monday, highlighting a broader shift in market sentiment. While robust earnings reports initially buoyed the S&P 500, investment strategist Tom Hainlin notes that the escalating conflict involving Iran has introduced a volatility layer that corporate performance alone cannot mitigate. The immediate concern is whether energy price spikes will force central banks into a more aggressive posture than previously anticipated.

All eyes are now fixed on upcoming economic data, which will serve as a litmus test for Federal Reserve policy. Following a recent cooling in employment figures, market participants are recalibrating their outlooks. Data from the CME FedWatch tool currently indicates a 52% probability of a September interest rate hike, signaling that traders are bracing for a period of heightened monetary uncertainty.