Investors had the weekend to reflect on the steep stock market drop last Friday. The Dow lost 1.73% while the Nasdaq (QQQ) fell by 2.15%. In Monday’s stock market, selling pressures will persist. Oil prices added another 3%.
Brent crude rose by nearly 3% to trade at around $116. WTI crude also increased by over 3%, trading at around $103 per barrel. The abrupt rise in oil prices potentially breaks the Magnificent Seven’s influence on valuations. Last week, Micron (MU) led the chip sector (-15.53%). Nvidia (NVDA) fell by 3%. Software stocks fared worse: Microsoft (MSFT), Oracle (ORCL), Palo Alto Networks (PANW), and Palantir (PLTR) shares fell.
Rising tensions in the Middle East would increase the demand for cybersecurity. But CrowdStrike fell by nearly 10%.
In Asian markets, South Korea opened lower by 5%. The longer the Middle East war persists, the more damage it will cause in Asian markets. Oil supply is limited, increasing inflation rates in Asia.
The Houthis joined the war by attacking Israeli military sites with ballistic missiles over the weekend. Investors cannot count on military stocks to offset losses in other holdings. Lockheed Martin (LMT) and RTX (RTX) are trending lower. AeroVironment (AVAV), a drone supplier, is down by nearly 25% in 2026.
Before the war, GE Aerospace (GE) and Boeing (BA) outperformed markets. Now, investors are selling their shares.
