The Prime Daily: 21 July 2026

Authored By Prime Research | Published at: Jul 21, 2026 08:51 AM IST

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Iran Tensions Rattle Markets; Wall Street Treads Water Ahead of Big Tech Earnings

U.S. stocks closed slightly lower Monday, giving back early gains as U.S.-Iran tensions escalated over the weekend. The Dow fell 307 points (-0.59%) to 51,839, the S&P 500 slipped 0.19% to 7443, and the Nasdaq was roughly flat, down 0.05% to 25,508. The 10-year Treasury yield rose to 4.59%, adding to investor unease.

Chip and AI stocks steadied after last week’s valuation-driven selloff. SK Hynix rose 5% to $161.42, AMD gained 3% to $514 on an expanded Microsoft partnership, Intel added 2%, and Nvidia climbed 2% to $206.

South Korea’s KOSPI now a bellwether for global AI sentiment stabilised after last week’s 9% single-session crash erased $1 trillion in value.

Investors are awaiting this week’s Big Tech earnings for evidence of AI monetisation.

Oil extended its advance as fighting between Washington and Tehran raised supply concerns. Brent briefly topped $90 a barrel intraday its highest since early June before paring gains on reports of possible mediation; the U.S. carried out a tenth consecutive night of strikes on Iran.

Saudi Arabia has diverted millions of barrels of oil per day to an export terminal on the Red Sea in response to Iran’s attacks on tankers in the Strait of Hormuz. The Houthis have repeatedly threatened to close an oil export route through the Red Sea during the U.S.-Iran war.

In Europe, Ryanair -Europe’s largest budget carrier reported Q1 net income of €538 million, down 34.4% year-over-year and below estimates, citing weaker fares and higher fuel costs. The miss pulled European airline stocks lower and added to pressure from elevated oil prices, sending the STOXX Europe 600 down 0.30%.

Asian markets are trading mixed as investors await earnings from major U.S. technology companies while keeping a close watch on geopolitical developments.

The Indian rupee started the week under pressure, weakening 16 paise to close at 96.44 yesterday. The currency came under strain amid escalating geopolitical tensions, which lifted crude oil prices and triggered risk-off sentiment. However, anticipated intervention by the central bank successfully capped the currency’s downside.

Nifty corrected on Monday, slipping 95 points to close at 24,238. The short-term trend remains positive as the index continues to trade above near-term averages. On the upside, immediate resistance is placed near 24,530, while 24,000 remains the key short-term support.

Indian markets are set to open marginally lower on soft global cues.

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