Wall Street is bracing for a heavy Monday open after a weekend that delivered not only the Nasdaq's worst point-drop on record — a $1.8 trillion single-day wipeout on Friday — but also a dramatic escalation between Israel and Iran that sent crude oil surging past $94 a barrel.
The Macro Picture: Oil Spikes on Israeli Strikes Inside Iran
The Israel Defense Forces confirmed Monday it struck military targets in western and central Iran, defying President Trump's reported plea to Prime Minister Netanyahu not to retaliate for Iran's earlier missile barrage. WTI crude jumped 4.5% to $94.62 a barrel, heading toward the $100 level for the first time since the war erupted.
Unconfirmed reports indicate explosions in at least six Iranian cities including Tehran, Isfahan, and Tabriz. Iran's chief negotiator, parliamentary speaker Mohammed Baqer Qalibaf, warned that U.S. bases and Israeli assets in the region are "legitimate targets."
Gold, the traditional safe haven, slipped 1.16% to $4,315 an ounce — a sign that investors are favoring cash and liquidity over commodities in the current environment.
Friday's Rout: What Happened
The Nasdaq composite plunged 4.18% on Friday in its largest point-drop ever, leading a $1.8 trillion market-cap wipeout across the S&P 500. The S&P 500 itself fell 2.64% to 7,384 points, while the Dow Jones — less exposed to tech — dropped a comparatively tame 1.35%.
The Philadelphia Semiconductor Index (SOX) crashed more than 10% in a single session — the steepest such plunge since the 2008 financial crisis. Academy Securities' Peter Tchir described it as "a punch in the face," quoting Mike Tyson: "Everyone has a plan until they get punched in the mouth."
NVIDIA led the selloff, dropping 6.2% to $205, despite an announcement from CEO Jensen Huang about a multi-year technology partnership with SK Hynix to develop next-generation memory for global AI factories.
Korea "Black Monday": Circuit Breaker Triggered
South Korea is experiencing a "Black Monday" of its own. The KOSPI index was halted for 20 minutes after crashing 8.8% at the open. Samsung Electronics fell as much as 11%, while SK Hynix slid 10%.
The data highlights a severe concentration problem: Samsung and SK Hynix account for 54% of the KOSPI's market weight and roughly three-quarters of the index's gains this year. Foreign investors have sold Korean equities for 21 consecutive trading days — the longest streak on record — offloading more than $10 billion last week alone.
The Korean won touched its weakest level against the dollar since March 2009.
NVIDIA: Strategic Deal, But Markets Shrug
NVIDIA and SK Hynix announced a multi-year technology partnership to advance next-generation memory for AI factory buildouts — news that would normally trigger a rally. "Together, we will co-develop the next generation of memory for AI factories," Huang said.
Yet markets looked past the positive headline. Overheating concerns in the AI trade, combined with macro uncertainty and geopolitical risk, overwhelmed any deal-specific optimism.
Why It Matters
The Israel-Iran escalation hits markets at a vulnerable moment. U.S. Treasury yields climbed to 4.54% after a hot jobs print, and Bank of America's Michael Hartnett warns that June is "chockablock" with event risk — including the upcoming CPI release and the SpaceX IPO set to begin trading next Friday. Hartnett described the setup as one that could "pop the bubble."
The Bottom Line
Monday's session is shaping up to be exceptionally volatile. The combination of a tech-led crash, escalating Middle East conflict, surging oil prices, and a developing crisis in South Korea's chip-dominated market creates a complex macro picture. All eyes will be on the White House's response to Israel's strikes, this week's inflation data — and whether the S&P 500 can stabilize after Friday's $1.8 trillion loss.
