U.S. stock futures posted modest gains on Friday as investors monitored ongoing fighting in the Middle East that has shown little sign of easing. Oil prices are heading for strong weekly advances as concerns grow over potential supply disruptions through the critical Strait of Hormuz shipping route. Meanwhile, markets are awaiting the release of the February U.S. employment report, while shares of Marvell Technology (NASDAQ:MRVL) surged after the company lifted its annual revenue outlook on strong artificial intelligence-driven demand for data centers.
Futures tick up as Iran tensions persist
U.S. equity futures moved slightly higher, although investor sentiment remained cautious as the conflict involving Iran entered its seventh day.
By 03:06 ET, futures on the Dow Jones Industrial Average were up 50 points, or 0.1%. S&P 500 futures gained 8 points, or 0.1%, while Nasdaq 100 futures rose 65 points, or 0.3%.
Wall Street’s major indices ended the previous session lower, pressured by rising oil prices as markets weighed the risk that supplies could be disrupted in the Strait of Hormuz, a narrow maritime passage south of Iran that serves as a key corridor for global energy shipments.
U.S. crude oil prices have jumped nearly 21% since the United States and Israel launched joint strikes against Iran. Since then, the conflict has expanded across other parts of the Middle East and the Persian Gulf, raising fears that oil flows from one of the world’s most important producing regions could be affected.
The average price of gasoline in the United States has climbed by 27 cents since the attacks began, reaching $3.25 per gallon, according to Reuters citing data from travel organization AAA.
With fuel prices rising, some investors are increasingly concerned that a prolonged conflict could reignite inflationary pressures. That scenario could push back the timeline for potential interest rate cuts from the Federal Reserve later this year. U.S. Treasury yields have already moved higher, adding pressure on equity markets.
Beyond the United States, the surge in crude prices has weighed on Asian stocks and currencies. South Korea has been particularly affected because it relies heavily on oil imports that pass through the Strait of Hormuz. The country’s Kospi index finished the session roughly flat but has fallen 10.56% over the past week. Major European equity benchmarks are also on track for their steepest weekly losses since last April.
Oil set for strong weekly gains
Oil markets remain on track for sizeable weekly increases as traders continue to worry that the conflict could disrupt shipping through the Strait of Hormuz, through which around 20% of the world’s oil supply travels.
In an attempt to ease some of those concerns, the United States said it would allow Russian oil to be sold to India for a temporary period of 30 days.
Analysts at ING said in a note: “While this might create some short-term downward pressure on prices, it does not fundamentally change the situation. A sustained decline in oil prices would require the restoration of normal oil flows through the Strait of Hormuz.”
The U.S. Treasury Department is also expected to introduce measures designed to help contain energy prices through financial markets, Reuters reported.
At the same time, there are few signs that the conflict will de-escalate in the near term. Israel carried out strikes on Hezbollah targets in Lebanon and also launched attacks on infrastructure in Tehran. Iran’s Revolutionary Guards responded with drone and missile attacks directed at Tel Aviv, according to media reports.
Iran has also postponed naming a successor to Ayatollah Ali Khamenei, who was killed in U.S. and Israeli airstrikes, according to the New York Times. Mojtaba Khamenei, the son of the slain supreme leader, is widely viewed as the leading candidate to succeed him. However, U.S. President Donald Trump has described the possibility of his appointment as “unacceptable.”
Nonfarm payrolls report ahead
Although geopolitical developments have dominated market attention this week, investors will also turn their focus to the state of the U.S. economy on Friday with the release of the February employment report.
Economists expect the U.S. economy to have added approximately 58,000 jobs last month, a slowdown from the 130,000 jobs created in January. The unemployment rate is forecast to remain unchanged at 4.3%.
Federal Reserve policymakers have been closely monitoring the labor market, which has remained relatively resilient despite subdued hiring and layoffs. The central bank has kept interest rates unchanged while awaiting clearer signals about the direction of employment and inflation.
Artificial intelligence developments could also influence how investors interpret the labor market data. Analysts and workers have increasingly warned that the spread of new AI technologies may lead to large-scale job cuts in white-collar sectors, as companies adopt the technology to boost efficiency and reduce costs. Those concerns intensified last week when Jack Dorsey’s payments company Block announced plans to reduce its workforce by about 40%.
Marvell shares jump
Shares of Marvell Technology surged more than 14% in after-hours trading after the semiconductor firm raised its full-year revenue outlook, citing robust demand for data center infrastructure tied to artificial intelligence.
Major technology companies including Amazon and Microsoft are investing heavily in AI development and plan to spend billions expanding the data centers required to power and train AI models.
Companies like Marvell, which develop networking and connectivity technologies that enable large-scale computer systems to move data efficiently, have been major beneficiaries of that spending boom.
Chief Executive Matt Murphy told investors that Marvell now expects fiscal 2027 revenue to increase by more than 30% year over year to nearly $11 billion. Murphy added that the company’s data center business is expected to drive revenue growth in every quarter of fiscal 2027.
Nvidia asks TSMC to halt China chip production — FT
Nvidia (NASDAQ:NVDA) has asked leading contract chipmaker TSMC (NYSE:TSM) to stop producing chips intended for the Chinese market amid ongoing headwinds from U.S. export restrictions, the Financial Times reported on Thursday.
According to the report, Nvidia has shifted manufacturing capacity at TSMC away from its H200 processors and toward its next-generation Vera Rubin hardware.
The move suggests Nvidia no longer expects significant sales of the H200 chip in China, particularly given uncertainty surrounding U.S. export controls and increasing regulatory pressure from Chinese authorities.
President Trump had previously indicated in December that Nvidia would be allowed to sell H200 chips in China. Although the H200 is an older processor, it remains the most advanced artificial intelligence chip Nvidia is currently permitted to export to the country under strict U.S. export regulations.
However, sales in China have reportedly stalled as U.S. lawmakers push for tighter restrictions on the use of these chips. At the same time, Beijing has been encouraging domestic technology development in an effort to achieve full self-reliance in artificial intelligence and semiconductor capabilities.
