What’s News in Markets: Middle East Strikes Send Oil Higher, South Korean Chip Stocks Fall, SpaceX Stumbles

Traders shut down their terminals last week hoping the Middle East peace deal would hold, that chip earnings would fuel another AI rally, and that SpaceX’s addition to a major stock index would give shares another boost. None of that happened. By Tuesday, missiles were flying again, and markets spent the week recalibrating. The S&P 500 still managed a 1.2% gain, the Nasdaq rose 1.7%, and the Dow slipped about half a percent.

Oil and Energy Stocks Surge as Ceasefire Collapses

Investors had spent the prior two weeks betting the worst of the conflict between the US and Iran was over. Oil prices had fallen back to pre-war levels, and stocks climbed to fresh records. But the ceasefire officially ended Wednesday, and oil prices shot higher as traders dusted off their wartime playbook. Brent crude surged 5.4% for the week to settle just above $76 a barrel.

The rally spilled into energy stocks, which had been beaten down during the peace trade. Energy was one of the top-performing S&P 500 sectors, rising 3.2%. Baker Hughes and Phillips 66 led the gains, with shares climbing about 7% and 9% respectively. The mood on Wall Street, as analysts summed it up, was “here we go again.”

AI Chip Stocks in South Korea Take a Hit