US Stocks Drop Sharply Amid Renewed US-Iran Tensions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
The major averages closed broadly lower after renewed military exchanges between the United States and Iran, which increased concerns about energy markets and global economic growth. Oil prices remain volatile as traders assess the risk of disruptions in the Middle East, particularly around the Strait of Hormuz. President Trump commented to reporters that the U.S. will be attacking Iran "very hard," building on his statement earlier on Truth Social that Iran took "too long to negotiate a deal that would have been great for them," so "now they will have to pay the price!!!"Meanwhile the CPI report showed annual inflation accelerating to 4.2% in May, which was in line with expectations but means that consumer prices rose at a faster rate for a third-straight month.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:SpaceX'sIPO has drawn over $250B of investor demand, dwarfing the $75B the company aims to raise,Chewyreportedand provided guidance for Q2 and FY26Cracker Barrelreportedand provided its outlook for FY26Super Microannounced $7B inVisais partnering with OpenAI to2. WALL STREET CALLS:Niketo Sector Perform at RBC CapitalBarclaysOscar Healthon exposure to individual ACA marketBillto Hold at TruistCava Groupto Buy at UBSSharkNinjawith an Overweight at Piper Sandler3. AROUND THE WEB:OpenAI is preparing its new model and expects its IPO to occur within the next year, The Information reportsUbisoftis shuttering two studios and cutting up to 380 staff, Kotaku reportsVolvosaid that in Q2, customer demand and deliveries in Europe are stable at good levels across the business, while in North America, demand remains strong with production gradually increasing, Reuters reportsStarbucksis considering options for its Japanese business, recently holding preliminary discussion with investment banks to determine an approach, Bloomberg saysAmazon Web Services'Chief Marketing Officer Julia White has asked staff to recruit recently laid off employees from Meta, Business Insider reports4. MOVERS:Clover Healthgained after announcing the Centers for Medicare & Medicaid ServicesHyliion Holdingsincreased after Needhamcoverage of the stock with a Buy ratingRobinhoodwas higher after, a director bought $20.2M shares, and announcing metrics for MayDianthuswas lower after Sanofihalted itsWolfspeedfell after filing to sell5. EARNINGS/GUIDANCE:J.Jilland reaffirmed guidance for FY26Hinge Healthraised itsCasey's General Stores, with CEO Darren Rebelez commenting on "another record fiscal year"Limoneira, with EPS missing consensusCore & Mainand reaffirmed its guidance for FY26INDEXES:The Dow fell 953.33, or 1.87%, to 49,918.78, the Nasdaq lost 509.32, or 1.98%, to 25,169.50, and the S&P 500 declined 119.66, or 1.62%, to 7,266.99.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to fall
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 102.280
Low
59.00
Averages
96.12
High
115.00
Current: 102.280
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Starbucks Q2 Earnings Beat Expectations, Stock Nears 52-Week High
- Significant Earnings Growth: Starbucks reported an adjusted EPS of $0.50 for Q2 FY2026, surpassing the consensus estimate of $0.44, with revenue reaching $9.53 billion, reflecting an 8.79% year-over-year increase, indicating strong recovery momentum.
- Strong North American Performance: Comparable sales in North America grew by 7.1%, showcasing transaction strength not seen in three years, suggesting that CEO Brian Niccol's 'Back to Starbucks' plan is yielding positive results.
- Ongoing Shareholder Returns: The company declared a quarterly dividend of $0.62, marking 64 consecutive quarters of payouts, while 17 recent insider buys indicate management's confidence in the company's value, rewarding investors for their patience.
- Valuation Risks Emerge: Despite a 23% year-to-date stock increase, the forward P/E stands at 32, with analyst consensus implying only a 4% upside, suggesting that the current stock price already reflects near-perfect execution, necessitating close monitoring of North America's sustainability.
See More
Market Rises on Optimism Over Iran Peace Deal
- Market Recovery: After two consecutive days of losses, the S&P 500 index rose on Friday afternoon, reflecting optimism regarding the Iran peace deal, although the likelihood of an agreement remains uncertain, which is expected to positively impact investor confidence.
- Successful SpaceX IPO: SpaceX's initial public offering (IPO) performed exceptionally well, with shares rising over 25%, generating $100 million in fees for Goldman Sachs and Morgan Stanley, further solidifying these banks' reputations in the capital markets.
- Tech Stock Volatility: Intel's stock surged over 25% following Google's order for over 3 million tensor processing units, while Bank of America upgraded its rating to buy, indicating increased market confidence in its semiconductor business.
- Software Stocks Under Pressure: Salesforce and Microsoft saw declines of over 11% and 7% respectively this week, reflecting concerns about the future of the software industry, particularly after a prior rebound, leading investors to question their profitability outlook.
See More
Coffee Industry Faces Legal Income Challenges
- Upcoming Legal Obligations: The EU's Corporate Sustainability Due Diligence Directive (CSDDD) mandates that by 2029, large companies must address human rights and environmental issues in their supply chains or face fines of up to 3% of global turnover, which will directly impact the coffee industry's business model.
- Lack of Living Income Commitments: Despite the directive recognizing living income as a binding human right, none of the world's 15 largest coffee roasters and traders mentioned living income commitments in their sustainability reports, highlighting a significant gap in social responsibility within the industry.
- Smallholder Farmer Struggles: The coffee sector is dominated by impoverished smallholder farmers, with approximately 12.5 million farming households cultivating less than two hectares producing most of the world's coffee, yet they struggle to secure viable incomes even at relatively high price levels, underscoring the industry's central challenge.
- Insufficient Sustainability Investments: While companies publish sustainability commitments, their core operations continue to rely on low-cost commodity purchasing, and the report indicates that unless this changes, sustainability investments will merely skirt around the problem rather than address it directly.
See More
Cincinnati Financial Corp. Options Show High Trading Volume
- Surge in Options Volume: Cincinnati Financial Corp. (CINF) has seen an options trading volume of 3,633 contracts today, equating to approximately 363,300 shares, which represents a significant 58.6% of its average daily trading volume over the past month.
- High Demand Options: Notably, the $180 strike call option expiring on June 18, 2026, has traded 3,573 contracts today, representing about 357,300 shares of CINF, indicating strong bullish sentiment in the market for this stock.
- Starbucks Options Activity: Starbucks Corp. (SBUX) has recorded an options trading volume of 46,863 contracts today, approximately 4.7 million shares, also accounting for 58% of its average daily trading volume over the past month.
- Bullish Options Interest: The $103 strike call option expiring on June 12, 2026, has seen a trading volume of 32,842 contracts today, representing around 3.3 million shares of SBUX, reflecting significant investor interest in this stock.
See More
Market Update: Rising Oil Prices and IPO Impacts
- Oil Price Pressure: Rising oil prices due to renewed tensions in Iran have led the S&P 500 and Nasdaq to face back-to-back losses, indicating market sensitivity to increasing energy costs that could undermine investor confidence.
- IPO Market Dynamics: With major IPOs from SpaceX, Anthropic, and OpenAI on the horizon, Jim Cramer expresses concern that new stock offerings may dilute market capital, prompting investors to trim positions and increase cash holdings, which now account for 12.4% of the portfolio.
- Linde's Beneficial Outlook: Analysts project that Linde will benefit from SpaceX's IPO, with expected launch revenues rising from $4 million last year to $6 million by 2028, highlighting the growth potential in the space sector for Linde.
- Starbucks Strategic Review: Starbucks is weighing strategic options for its Japanese business, potentially valuing it at $2.5 billion, aiming to optimize resource allocation and focus on the U.S. market turnaround, reflecting the company's adaptive strategy across different markets.
See More
Tech Stock Pullback Sparks Market Attention
- Tech Stock Pullback: Over the last three trading days, tech stocks, particularly in semiconductors and AI, have faced significant declines, with the Nasdaq 100 dropping over 3% on July 24, 2024, indicating investor anxiety over AI investment returns, which could impact overall market confidence.
- Capex Concerns: For 2026, major hyperscalers are projected to guide capital expenditures between $600 billion and $700 billion, with Amazon alone forecasting $200 billion in infrastructure spending, a 56% increase, raising worries that cash flow may not support such high spending, potentially leading to further market turmoil.
- Shifting Market Sentiment: A strong employment report has pushed rate expectations higher, coupled with renewed fears over AI spending, causing market sentiment to shift from extreme bullishness to caution, leading to sell-offs at elevated levels and creating a negative feedback loop that may affect future investment decisions.
- Return to Defensive Investments: As capital flows out of tech, traditional defensive stocks like Eli Lilly, Home Depot, Procter & Gamble, and Starbucks are gaining attention, reflecting market confidence in economic health and potentially bringing much-needed capital into these previously overlooked sectors.
See More
Starbucks Q2 Earnings Beat Expectations, Stock Nears 52-Week High
- Significant Earnings Growth: Starbucks reported an adjusted EPS of $0.50 for Q2 FY2026, surpassing the consensus estimate of $0.44, with revenue reaching $9.53 billion, reflecting an 8.79% year-over-year increase, indicating strong recovery momentum.
- Strong North American Performance: Comparable sales in North America grew by 7.1%, showcasing transaction strength not seen in three years, suggesting that CEO Brian Niccol's 'Back to Starbucks' plan is yielding positive results.
- Ongoing Shareholder Returns: The company declared a quarterly dividend of $0.62, marking 64 consecutive quarters of payouts, while 17 recent insider buys indicate management's confidence in the company's value, rewarding investors for their patience.
- Valuation Risks Emerge: Despite a 23% year-to-date stock increase, the forward P/E stands at 32, with analyst consensus implying only a 4% upside, suggesting that the current stock price already reflects near-perfect execution, necessitating close monitoring of North America's sustainability.
See More
Market Rises on Optimism Over Iran Peace Deal
- Market Recovery: After two consecutive days of losses, the S&P 500 index rose on Friday afternoon, reflecting optimism regarding the Iran peace deal, although the likelihood of an agreement remains uncertain, which is expected to positively impact investor confidence.
- Successful SpaceX IPO: SpaceX's initial public offering (IPO) performed exceptionally well, with shares rising over 25%, generating $100 million in fees for Goldman Sachs and Morgan Stanley, further solidifying these banks' reputations in the capital markets.
- Tech Stock Volatility: Intel's stock surged over 25% following Google's order for over 3 million tensor processing units, while Bank of America upgraded its rating to buy, indicating increased market confidence in its semiconductor business.
- Software Stocks Under Pressure: Salesforce and Microsoft saw declines of over 11% and 7% respectively this week, reflecting concerns about the future of the software industry, particularly after a prior rebound, leading investors to question their profitability outlook.
See More
Coffee Industry Faces Legal Income Challenges
- Upcoming Legal Obligations: The EU's Corporate Sustainability Due Diligence Directive (CSDDD) mandates that by 2029, large companies must address human rights and environmental issues in their supply chains or face fines of up to 3% of global turnover, which will directly impact the coffee industry's business model.
- Lack of Living Income Commitments: Despite the directive recognizing living income as a binding human right, none of the world's 15 largest coffee roasters and traders mentioned living income commitments in their sustainability reports, highlighting a significant gap in social responsibility within the industry.
- Smallholder Farmer Struggles: The coffee sector is dominated by impoverished smallholder farmers, with approximately 12.5 million farming households cultivating less than two hectares producing most of the world's coffee, yet they struggle to secure viable incomes even at relatively high price levels, underscoring the industry's central challenge.
- Insufficient Sustainability Investments: While companies publish sustainability commitments, their core operations continue to rely on low-cost commodity purchasing, and the report indicates that unless this changes, sustainability investments will merely skirt around the problem rather than address it directly.
See More
Cincinnati Financial Corp. Options Show High Trading Volume
- Surge in Options Volume: Cincinnati Financial Corp. (CINF) has seen an options trading volume of 3,633 contracts today, equating to approximately 363,300 shares, which represents a significant 58.6% of its average daily trading volume over the past month.
- High Demand Options: Notably, the $180 strike call option expiring on June 18, 2026, has traded 3,573 contracts today, representing about 357,300 shares of CINF, indicating strong bullish sentiment in the market for this stock.
- Starbucks Options Activity: Starbucks Corp. (SBUX) has recorded an options trading volume of 46,863 contracts today, approximately 4.7 million shares, also accounting for 58% of its average daily trading volume over the past month.
- Bullish Options Interest: The $103 strike call option expiring on June 12, 2026, has seen a trading volume of 32,842 contracts today, representing around 3.3 million shares of SBUX, reflecting significant investor interest in this stock.
See More
Market Update: Rising Oil Prices and IPO Impacts
- Oil Price Pressure: Rising oil prices due to renewed tensions in Iran have led the S&P 500 and Nasdaq to face back-to-back losses, indicating market sensitivity to increasing energy costs that could undermine investor confidence.
- IPO Market Dynamics: With major IPOs from SpaceX, Anthropic, and OpenAI on the horizon, Jim Cramer expresses concern that new stock offerings may dilute market capital, prompting investors to trim positions and increase cash holdings, which now account for 12.4% of the portfolio.
- Linde's Beneficial Outlook: Analysts project that Linde will benefit from SpaceX's IPO, with expected launch revenues rising from $4 million last year to $6 million by 2028, highlighting the growth potential in the space sector for Linde.
- Starbucks Strategic Review: Starbucks is weighing strategic options for its Japanese business, potentially valuing it at $2.5 billion, aiming to optimize resource allocation and focus on the U.S. market turnaround, reflecting the company's adaptive strategy across different markets.
See More
Tech Stock Pullback Sparks Market Attention
- Tech Stock Pullback: Over the last three trading days, tech stocks, particularly in semiconductors and AI, have faced significant declines, with the Nasdaq 100 dropping over 3% on July 24, 2024, indicating investor anxiety over AI investment returns, which could impact overall market confidence.
- Capex Concerns: For 2026, major hyperscalers are projected to guide capital expenditures between $600 billion and $700 billion, with Amazon alone forecasting $200 billion in infrastructure spending, a 56% increase, raising worries that cash flow may not support such high spending, potentially leading to further market turmoil.
- Shifting Market Sentiment: A strong employment report has pushed rate expectations higher, coupled with renewed fears over AI spending, causing market sentiment to shift from extreme bullishness to caution, leading to sell-offs at elevated levels and creating a negative feedback loop that may affect future investment decisions.
- Return to Defensive Investments: As capital flows out of tech, traditional defensive stocks like Eli Lilly, Home Depot, Procter & Gamble, and Starbucks are gaining attention, reflecting market confidence in economic health and potentially bringing much-needed capital into these previously overlooked sectors.
See More
