US equity markets closed lower on Monday, with the Dow Jones Industrial Average falling 0.26%, as investors reacted to President Donald Trump’s announcement that the United States will reinstate a naval blockade on Iran.
The decision triggered a broad risk-off sentiment across Wall Street, reversing any recent stability in major benchmarks.
The sell-off was particularly acute in the technology sector, where semiconductor stocks faced heavy selling pressure.
SK Hynix shares dropped sharply, reflecting investor concerns over potential supply chain disruptions and broader geopolitical instability in the Middle East.
The move underscores how quickly geopolitical developments can override fundamental market drivers, especially in sectors reliant on global logistics.
This development follows a week of sustained selling pressure on US equities, which had already weighed heavily on major indices.