Micron Technology (MU) and SK Hynix (SKHY) started Monday morning’s trading with a strong rally. Shares gained over 4%. But by the end of the day, both MU and SKHY shares barely rose by 2%.
The rally faded throughout the day as stock markets could not ignore the persistent tensions between the U.S. and Iran. After markets closed on Monday, the Houthis announced they would block Saudi Arabia. That opens a new front against the U.S., if it goes through with the threat.
The U.S. launched ten straight nights of attacks against Iran. Despite the two countries indicating a willingness to restart peace talks, the Houthis announced their threat anyway.
Investors have accumulated energy stocks since the start of this month. After Devon Energy (DVN), Exxon Mobil (XOM), and Chevron (CVX) fell, they trended upward again. DVN stock, however, faces technical resistance at the 50 day-simple moving average. It might break past that resistance if U.S. bombings on Iran continue.
Markets will look forward to Alphabet (GOOG) and Tesla’s (TSLA) earnings reports. That might brighten the sentiment. Still, SpaceX’s (SPCX) post-IPO flop is a warning sign. Nasdaq (NDAQ) included the money-losing firm in the index. That forced passive retail investors to hold SPCX stock at a loss.
SPCX traded below $120 in after-hours trading. Unless the firm announces a massive contract with the Pentagon or NASA, selling will accelerate through August.
The insider lockup for SPCX stock expires next month.
