S&P 500 drops after Trump reimposes Strait of Hormuz blockade, SK Hynix leads chip stocks lower: Live updates

The S&P 500 dropped 0.6% on Monday after President Trump announced the reinstatement of a blockade on Iranian shipping through the Strait of Hormuz. The Nasdaq also declined as semiconductor stocks came under pressure, with SK Hynix leading chip names lower ahead of the market open.

The Strait of Hormuz serves as a critical chokepoint for global oil shipments, and Trump's blockade declaration introduced fresh geopolitical risk into markets. The move targets Iranian shipping specifically, though the full scope of enforcement remains to be detailed.

Semiconductor stocks bore the brunt of Monday's selling pressure. SK Hynix, one of the world's largest memory chip manufacturers, led the sector lower as investors rotated out of high-beta technology names. The weakness in chips contributed to broader Nasdaq underperformance relative to the S&P 500.

The combination of geopolitical uncertainty and sector-specific weakness in semiconductors created a risk-off tone to start the week, with traders reassessing positions in growth stocks and monitoring potential supply chain implications from the Hormuz announcement.