US sharemarkets finished modestly lower overnight as rising oil prices and ongoing conflict between the US and Iran kept investors cautious, although hopes of renewed diplomatic talks helped limit losses.
The S&P 500 slipped 0.19% to 7,443.28, while the Nasdaq Composite edged 0.05% lower to 25,508.07. The Dow Jones Industrial Average fell 307.16 points, or 0.59%, to 51,839.26, weighed down by a decline of more than 2% in Apple shares.
Oil prices strengthened after President Donald Trump vowed Iran would “pay many times over” for the deaths of three US service members, while Houthi forces in Yemen announced a maritime embargo on Saudi Arabia. Brent crude rose 1.3% to settle at US$89.22 a barrel and US crude gained 0.9% to US$83.23.
Technology shares were mixed as semiconductor stocks attempted to recover from last week’s heavy losses. Micron Technology rose almost 2%, Teradyne gained 3.5% and Advanced Micro Devices added 1.6%, helping the VanEck Semiconductor ETF finish slightly higher. Alphabet also advanced 1.5% following reports it is developing a new server chip to optimise its Gemini artificial intelligence model.
Investor sentiment improved briefly after Iranian officials signalled that diplomatic negotiations remained possible despite the latest military exchanges, although geopolitical uncertainty continued to dominate trading.
Australian Market Outlook
Australian shares are expected to open lower after a subdued session on Wall Street and another rise in oil prices.
S&P/ASX 200 futures are down 36 points, or 0.4%, to 8,717.
Energy stocks are likely to remain supported by stronger crude prices, while technology shares may find some stability after signs the semiconductor sector is beginning to recover. Investors will also be watching New Zealand’s second-quarter inflation data, with economists forecasting annual CPI to accelerate to 4.1%, while developments in the Middle East are expected to remain the key driver of global market sentiment.
