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Published: 13 July 2026,06:58
Daily Market Analysis New
*Renewed U.S.-Iran hostilities have triggered a risk-off mood, pressuring Wall Street, with the Nasdaq underperforming as investors reduce exposure to technology and growth stocks.
*The highly anticipated SK Hynix ADR IPO has generated strong interest and could provide selective support for semiconductor and AI-related stocks, though broader geopolitical risks are likely to limit its market impact.
*This week’s CPI report will be closely watched. A hotter-than-expected inflation reading could reinforce higher-for-longer Fed expectations and extend pressure on equities, while softer data may support a recovery in risk assets.
Renewed crossfire and escalating tensions between Iran and the United States have injected fresh risk-off sentiment into global financial markets. This development has contributed to heightened volatility and selective selling pressure across risk assets, with notable implications for Wall Street. The Nasdaq Composite, in particular, has shown vulnerability due to its heavy weighting toward technology and growth-oriented stocks, which tend to underperform during periods of geopolitical uncertainty and rising risk aversion.
Geopolitical flare-ups in the Middle East typically weigh on equities through several channels. Concerns over potential oil supply disruptions have driven energy prices higher, raising inflation fears and complicating the Federal Reserve’s policy outlook. This environment encourages investors to favor defensive sectors, safe-haven assets such as U.S. Treasuries, and the dollar, often at the expense of high-valuation tech names that dominate the Nasdaq. As a result, the index has faced downward pressure, with traders trimming exposure to semiconductors, software, and other growth areas amid fears of broader economic fallout from prolonged regional instability.
Against this backdrop, the upcoming initial public offering of SK Hynix American Depositary Receipts (ADR) has generated significant hype as the second-largest IPO in recent memory. SK Hynix, a major player in the memory chip and semiconductor industry, benefits from strong tailwinds in artificial intelligence demand and data center expansion. The listing has attracted substantial investor interest, with some market participants hoping that positive momentum from this high-profile debut could provide a counterbalance to geopolitical headwinds and inject optimism into the tech sector. However, while the IPO may deliver short-term excitement and support for related semiconductor stocks, it is unlikely to fully offset broader risk-off dynamics. Large IPOs can sometimes boost sentiment temporarily, but they rarely override macroeconomic and geopolitical concerns when risk aversion is elevated. The event may instead serve as a focal point for selective buying within tech rather than a broad market catalyst.
Compounding these pressures, the U.S. equities market faces an important test this week with the release of Consumer Price Index (CPI) data. A hotter-than-expected reading would reinforce concerns about persistent inflation, potentially delaying anticipated rate cuts and pouring cold water on the recent bullish equity momentum. Such data could amplify selling in growth stocks on the Nasdaq, as higher-for-longer interest rates increase the discount rate applied to future earnings. Conversely, a cooler CPI print might alleviate some pressure and allow markets to refocus on corporate fundamentals and innovation themes.
Technical Analysis
Nasdaq has delivered an encouraging technical signal after breaking above its short-term descending channel, suggesting that the previous bearish structure has been weakened and that a potential bullish trend reversal may be underway.
However, the bullish momentum appears to be fading in the near term. The latest price action shows the index forming a lower-low pattern, indicating that sellers are attempting to regain control despite the earlier breakout. This suggests that the market is at a critical juncture, where the recent bullish breakout is now being tested.
The key level to monitor is the 29,061.30 support zone. As long as the Nasdaq can find support and hold above this level, the bullish bias remains intact, and the recent breakout from the downtrend channel could still pave the way for a broader recovery.
Conversely, a decisive break below 29,061.30 would constitute a bearish structural breakdown, suggesting that the recent upside move was a false breakout. Such a development would reinforce the bearish outlook and increase the likelihood of a deeper correction in the sessions ahead.
Resistance Levels:30,217.80, 30,718.50
Support Levels: 29.061.30, 28,438.90
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