A global semiconductor selloff originating in South Korea's KOSPI — which plummeted and triggered circuit breakers — has bled into U.S. markets Tuesday, with the Nasdaq sinking roughly 1.4% and the S&P 500 off about 1%. AI capex anxiety, Alphabet's ongoing talent exodus, and hawkish Fed repricing are colliding at once, even as the US-Iran peace framework shows fragile progress and oil continues to slide on restored Hormuz flows.
→ FedEx (FDX) reports earnings after the close tonight — first major bellwether of the week and a key read on the freight/logistics economy under elevated rate and oil-price uncertainty.
→ US-Iran negotiation headlines: Iran's contradictions on IAEA inspections and Hormuz control could rapidly reprice oil and risk assets in either direction. Watch for any official joint statement from the Switzerland talks.
→ Thursday's PCE inflation report — the Fed's preferred price gauge — will either cement or shake September rate hike expectations currently priced near 68%. A hot print could send yields and the dollar sharply higher and further pressure growth stocks and crypto.