TLDR
- IBM stock dropped 18% after missing Q2 earnings and revenue expectations
- Dow futures fell over 400 points; Nasdaq futures edged higher as tech tried to recover
- U.S. launched a third straight night of strikes on Iran, pushing oil prices sharply higher
- Brent crude rose 4.3% to $86.90 a barrel; WTI added 3.1% to $80.52
- Markets await June CPI data, Fed Chair testimony, and major bank earnings reports
IBM shares fell 18% on Tuesday after the company released preliminary second-quarter results that missed both earnings and revenue expectations. IBM is one of the 30 stocks that make up the Dow Jones Industrial Average, so the drop hit the index hard.
International Business Machines Corporation, IBM
Dow futures fell 441 points, or 0.8%, in early trading. S&P 500 futures slipped 0.1%. Nasdaq 100 futures bucked the trend, rising 0.5% as tech stocks tried to claw back losses from the previous session.
Monday’s session saw all three major indexes fall. A selloff in chip stocks and rising oil prices were the main culprits, after President Trump announced the U.S. would reinstate a naval blockade of the Strait of Hormuz.
Oil Prices Rise as U.S.-Iran Conflict Continues
The U.S. carried out a third straight night of strikes on Iran, pushing crude prices higher again on Tuesday morning. Brent crude futures gained 4.3% to $86.90 a barrel. West Texas Intermediate rose 3.1% to $80.52 a barrel.
The U.S. also announced plans to begin enforcing the Strait of Hormuz blockade Tuesday afternoon, with a 20% fee on all cargo passing through the waterway. That raised fresh concerns about an energy shock feeding into inflation.
BREAKING: President Trump says the US is reinstating its blockade of the Strait of Hormuz for Iranian ships and customers.
Trump says the US will now be known as "The Guardian of the Strait of Hormuz" and will be "reimbursed" at a rate of 20% on all cargo shipped.
It appears… pic.twitter.com/MtjidgWMMM
— The Kobeissi Letter (@KobeissiLetter) July 13, 2026
UBS Global Wealth Management’s Chief Investment Officer Mark Haefele commented on the situation. He said the ongoing hostilities show how difficult a lasting deal between Washington and Tehran will be, but added that both sides still want to avoid full-scale war.
AI chip stocks have been under pressure. Newly listed U.S. shares of South Korea’s SK Hynix fell further after its U.S. IPO on Friday. A mix of rate-hike speculation, capital spending concerns, and profit-taking has weighed on the sector.
Key Data and Bank Earnings in Focus
Investors were watching the June Consumer Price Index report, due at 8:30 a.m. ET. Economists expected inflation to have cooled in June. However, bond traders had already been increasing bets on a Federal Reserve rate hike at its July 28-29 meeting.
Fed Chair Kevin Warsh was also set to testify before Congress on monetary policy and the economy, adding another potential market mover to an already busy day.
On the earnings front, JPMorgan, Goldman Sachs, Bank of America, Wells Fargo, and Citigroup were all reporting second-quarter results. Analysts expected the big banks to post some of their strongest results on record.
The combination of geopolitical tension, inflation uncertainty, and earnings results made Tuesday one of the most closely watched market sessions in recent weeks.
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