{"id":74045,"date":"2026-11-02T22:38:24","date_gmt":"2026-11-03T02:38:24","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-strikes-iran-as-tech-margins-and-equity-corrections-take-center-stage\/74045\/"},"modified":"2026-11-02T22:38:24","modified_gmt":"2026-11-03T02:38:24","slug":"market-alert-us-strikes-iran-as-tech-margins-and-equity-corrections-take-center-stage","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-alert-us-strikes-iran-as-tech-margins-and-equity-corrections-take-center-stage\/74045\/","title":{"rendered":"Market Alert: US Strikes Iran as Tech Margins and Equity Corrections Take Center Stage"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US Forces Strike Iran\u2019s Qeshm Island:<\/strong> The U.S. military conducted a defensive strike against targets on <strong>Qeshm Island<\/strong> in the Strait of Hormuz, even as President Trump publicly downplayed the prospect of renewed war ahead of the midterm elections.<\/li>\n<li><strong>Apple Faces Holiday Margin Squeeze:<\/strong> Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>) warned that <strong>rising memory chip prices<\/strong> and the operational costs of its new <strong>Siri AI tools<\/strong> will pressure gross margins to <strong>45%\u201346%<\/strong> in the holiday quarter.<\/li>\n<li><strong>Equity Correction Nearing &quot;Final Innings&quot;:<\/strong> Morgan Stanley (<a href=\"\/stock\/MS\">MS<\/a>) Chief U.S. Equity Strategist Mike Wilson suggests a <strong>9% <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> pullback<\/strong> is underway but expects a recovery toward <strong>8,000<\/strong> following the removal of election uncertainty.<\/li>\n<li><strong>Biotech Dealmaking Surges:<\/strong> Rhythm Pharmaceuticals (<a href=\"\/stock\/RYTM\">RYTM<\/a>) entered an <strong>$855 million licensing agreement<\/strong> with South Korea&#39;s LG Chem (<a href=\"\/stock\/051910\">051910<\/a>) to acquire global rights for an oral obesity treatment.<\/li>\n<\/ul>\n<h2>Geopolitical Tensions and Energy Markets<\/h2>\n<p>The U.S. military launched what officials termed a <strong>&quot;defensive strike&quot;<\/strong> against Iranian assets on <strong>Qeshm Island<\/strong> on Monday. The operation targeted a strategic location housing naval bases and missile facilities near the <strong>Strait of Hormuz<\/strong>. Despite the strike, President Trump stated on <em>Hannity<\/em> that there &quot;hasn&#39;t been shooting for months,&quot; while simultaneously suggesting the U.S. could neutralize specific targets like <strong>&quot;Pickaxe Mountain&quot;<\/strong> within an hour if necessary.<\/p>\n<p><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> reacted immediately to the reports of escalation in the Middle East. <strong>Brent crude<\/strong> futures rose <strong>0.5% to $105.25 a barrel<\/strong>, while <strong>West Texas Intermediate (WTI)<\/strong> saw a similar gain to <strong>$96.93<\/strong>. Investors remain on edge as the conflict threatens to disrupt global oil supply routes just hours before the U.S. midterm elections.<\/p>\n<h2>Tech Sector and Corporate Earnings<\/h2>\n<p>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>) reported strong fiscal fourth-quarter results with revenue of <strong>$114.5 billion<\/strong>, but shares fell <strong>3%<\/strong> in extended trading due to a cautious outlook. The company is grappling with <strong>surging memory costs<\/strong> and the high capital expenditure required to roll out its redesigned <strong>Siri AI<\/strong>, which utilizes Google&#39;s Gemini model. CFO Kevan Parekh noted that inventory has more than doubled to <strong>$14.5 billion<\/strong> as the company attempts to stockpile components before further price hikes.<\/p>\n<p>In the financial sector, Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>) CEO David Solomon expressed a <strong>&quot;constructive&quot;<\/strong> outlook for 2026, citing an expected boost from <strong>tax cuts, deregulation, and the AI investment boom<\/strong>. Solomon noted that while the macro setup is favorable for risk assets, the market must navigate &quot;speed bumps&quot; related to trade policy and tariffs.<\/p>\n<h2>Global Markets and Fixed Income<\/h2>\n<p>Morgan Stanley (<a href=\"\/stock\/MS\">MS<\/a>) strategist Mike Wilson believes the current equity market correction is nearing its end. Wilson highlighted that while the <strong>S&amp;P 500<\/strong> may dip to <strong>7,100<\/strong>, the underlying damage is already significant, with <strong>60% of Russell 3000 stocks<\/strong> down at least <strong>20%<\/strong> since June. He views the post-election period as a &quot;clearing event&quot; that historically leads to a <strong>15% gain<\/strong> in large-cap stocks over the following six months.<\/p>\n<p>In Asia, South Korea&#39;s <strong>30-year bond auction<\/strong> cleared at a <strong>4.070% yield<\/strong>, reflecting a slight easing in long-term rates. Simultaneously, Vietnam reported robust economic momentum, with <strong>industrial output<\/strong> contributing to a record <strong>$1.01 trillion in total trade<\/strong> for the first ten months of 2024. Fitch Ratings also assigned an <strong>&#39;A(EXP)&#39;<\/strong> rating to Bank of China&#39;s proposed senior unsecured notes from its Hong Kong branch, citing strong capital and liquidity buffers.<\/p>\n<h2>Healthcare and Innovation<\/h2>\n<p>Rhythm Pharmaceuticals (<a href=\"\/stock\/RYTM\">RYTM<\/a>) has solidified its pipeline through an <strong>$855 million deal<\/strong> with LG Chem (<a href=\"\/stock\/051910\">051910<\/a>). The agreement grants Rhythm global rights to <strong>LB54640<\/strong>, an investigational oral therapy for rare neuroendocrine diseases and obesity. The deal includes an upfront payment and potential milestones, as Rhythm seeks to offer a full portfolio of treatment options for patients with <strong>MC4R pathway diseases<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Forces Strike Iran\u2019s Qeshm Island: The U.S. military conducted a defensive strike against targets on Qeshm Island 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