LIVE: Bitcoin struggles around $62,000, stocks slide as Trump and Iran continue strikes

U.S. stocks opened the week lower as fresh tension around the Strait of Hormuz weighed on risk appetite. The S&P 500 dropped 0.7%, the Nasdaq Composite fell 1.5%, and the Dow lost 139 points, or 0.3%.

Trump said the waterway would stay accessible whether Iran cooperates or not. He also announced the return of a blockade aimed only at Iranian vessels and companies doing business with Tehran, while ships from every other country would still be allowed through.

Under the plan, the United States would take responsibility for protecting traffic in the strait and refer to itself as the “Guardian of the Hormuz Strait.” Trump said cargo operators would be charged 20% of the value of every shipment to cover Washington’s security costs, with the arrangement taking effect immediately.

Chip stocks were among the day’s biggest losers. SK Hynix’s U.S.-listed shares sank 6% after jumping 13% during their Nasdaq debut on Friday.

Micron Technology fell 5%, Sandisk dropped 12%, and Seagate Technology lost 6%. Advanced Micro Devices declined 3%, while Intel slid 6%.

Major banks also traded in the red before reporting quarterly results later this week. The group included JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo.

Expectations remain elevated heading into earnings season. FactSet’s average forecast shows second-quarter profits for S&P 500 companies rising more than 23% from a year earlier.

Investors will next turn to Tuesday morning’s June consumer inflation report. Economists surveyed by Dow Jones expect prices to fall 0.2% from May, while remaining 3.8% higher than a year ago.

Federal Reserve Chairman Kevin Warsh is also due before the House Financial Services Committee on Tuesday. Kevin will present the central bank’s twice-yearly update on monetary policy.

Elon Musk’s SpaceX sank below $140, marking its lowest level since going public. The shares were later quoted at $145.30, close to the bottom of their 52-week range, after losing 9.4% over the past five trading days.

Bernstein SocGen Group kept its Outperform call and $239 price target following China’s latest rocket test. Separately, InvestingPro’s valuation model currently classifies the stock as expensive and gives the company a “WEAK” financial health rating. The platform says another 10 investing indicators are available for subscribers reviewing SpaceX’s outlook.

China successfully brought the first stage of its Long March 10B booster back to the ground on July 10. Bernstein had not expected the country to reach that milestone for another six months.

The landing adds to Beijing’s broader space plans. China submitted paperwork to the International Telecommunication Union in December covering more than 200,000 low-Earth-orbit satellites. It is also developing large satellite networks and working toward a research facility on the moon.

China has still not shown that the recovered booster can fly again. SpaceX has been reusing Falcon 9 first stages for almost a decade and carried out 165 launches last year.

The Chinese rocket is built to recover only its opening stage. Starship, by comparison, is meant to bring back every major section of the vehicle, although SpaceX has yet to prove full reusability in regular operations.

China would still need to relaunch recovered hardware and manufacture rockets at a much faster pace before it could support launch numbers anywhere close to SpaceX’s current output.

Other Wall Street firms have also started covering the newly listed company. Raymond James issued a Strong Buy rating with an $800 target, the highest published estimate and roughly 440% above the quoted share price.

Deutsche Bank set a Buy recommendation and a $255 objective, pointing to improvements in launch dependability and lower mission costs. Macquarie placed an Outperform rating and $250 target on the stock, citing the company’s combined exposure to rockets, satellite internet and artificial-intelligence infrastructure.

Clear Street also began coverage with a Buy rating and a $217 target. The firm highlighted SpaceX’s position in satellite broadband and its recent contracts for large-scale computing projects.

The United States says ships can still move through the Strait of Hormuz, even though Iran announced early Sunday that the waterway had been sealed indefinitely.

Tehran has been pushing to control how vessels use the route, creating two completely different accounts of whether the strait is operating.

Fighting carried into Saturday after the U.S. military said it had bombed more than 140 locations across Iran. Washington said the operation followed an Iranian strike on a ship travelling through Hormuz on a route Tehran had not approved.

The Islamic Revolutionary Guard Corps expanded its response across the region on Sunday. The force said it struck an American base in Jordan, while the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain reported intercepting or responding to Iranian missiles and drones.

Later on Sunday, Iran’s state-run IRNA reported that hostile missiles had been fired toward Qeshm Island. The island sits in a strategically important part of the Gulf and hosts a major Revolutionary Guard facility.

The renewed attacks have placed last month’s temporary ceasefire under fresh pressure. That agreement was designed to restore shipping through Hormuz before moving both sides toward a lasting end to the conflict.

Trump said earlier this week that Iran’s actions had effectively ended the truce. Iranian Foreign Minister Abbas Araghchi accused Washington of breaking the agreement instead.

Trump also said negotiations were not being abandoned. Mediators are still working to restart the process despite the latest round of strikes.

President Donald Trump ordered another round of U.S. airstrikes on Iran on Saturday after the Islamic Revolutionary Guard Corps hit a merchant vessel moving through the Strait of Hormuz, the American military said.

The M/V GFS Galaxy, a Cyprus-flagged container ship, can no longer complete its voyage. U.S. Central Command said the assault sparked a fire aboard the vessel and badly damaged its engine room. One civilian sailor remains missing.

CENTCOM said the new strikes were meant to further weaken Iran’s ability to target commercial shipping and civilian crews travelling through the waterway. Defense Secretary Pete Hegseth said Tehran had made the wrong move and would now face the consequences.

Iran’s Guard later announced that all maritime movement through Hormuz had been suspended indefinitely. In a statement carried by state-run PressTV, the force said no ships would be allowed to pass.

Saturday’s operation marked the third U.S. bombing campaign against Iran this week following attacks on commercial vessels in the strait.

Iran has been striking ships using the southern passage near Oman, where the U.S. military provides protection. Tehran wants vessels redirected through a northern channel that crosses Iranian territorial waters.

Washington and Tehran had signed an agreement on June 17 aimed at restoring traffic through Hormuz, but both sides are now arguing over what the arrangement actually required.

Iran pledged to make a serious effort to keep ships safe and agreed not to collect transit fees for 60 days. However, the document did not clearly state which shipping lanes vessels were expected to use.