Category: Market Summary

U.S. stock futures indicate a weaker start to trading on Thursday, pointing to additional losses after equities faced heavy selling pressure in the previous session.

Investor sentiment is being dampened by concerns about the escalating conflict in the Middle East following attacks on key energy infrastructure throughout the region.

Israel launched strikes on Iran’s South Pars natural gas fields and oil facilities in Asaluyeh, while an Iranian missile strike targeting Qatar’s Ras Laffan energy complex reportedly caused “extensive damage,” according to the country’s state-run energy company.

In a post on Truth Social, President Donald Trump warned that the United States could “massively blow up the entirety of the South Pars Gas Field at an amount of strength and power that Iran has never seen or witnessed before” if additional attacks are carried out against Qatar.

Brent crude futures, which surged to nearly $120 per barrel after the latest developments, have since retreated slightly but remain above $113 per barrel.

Stocks fell sharply during Wednesday’s trading session, reversing most of the gains recorded in the previous two days. All three major U.S. indices finished firmly in negative territory, with the Dow Jones Industrial Average and the S&P 500 approaching their lowest levels in nearly four months.

By the closing bell, the indices had recovered modestly from their intraday lows. The Dow dropped 768.11 points, or 1.6%, ending the day at 46,225.15. The Nasdaq Composite declined 327.11 points, or 1.5%, to 22,152.42, while the S&P 500 fell 91.39 points, or 1.4%, to close at 6,624.70.

After an early decline, selling pressure intensified later in the session following a negative reaction to remarks by Federal Reserve Chair Jerome Powell after the central bank confirmed its widely anticipated decision to keep interest rates unchanged.

Speaking at the post-meeting press conference, Powell said the United States is seeing “some progress on inflation,” but “not as much as we had hoped.”

Although the Fed’s latest projections still suggest the possibility of a quarter-point rate cut later this year, Powell cautioned that “you won’t see the rate cut” unless inflation continues to move lower.

Powell also highlighted the difficult balance facing policymakers, stating that “the risks to the labor market are to the downside, which would call for lower rates, and the risks to inflation are to the upside, which would call for higher rates or not cutting anyway.”

The Fed’s comments followed its decision to maintain the target range for the federal funds rate at 3.50% to 3.75%, after also leaving rates unchanged at its January meeting.

Most Fed officials supported keeping rates steady, although Fed Governor Stephen I. Miran once again favored lowering rates by a quarter percentage point.

Earlier market weakness had already been triggered by a report from the U.S. Labor Department showing producer prices rose more sharply than expected in February.

The department said its producer price index for final demand increased by 0.7% in February after rising 0.5% in January. Economists had anticipated a smaller gain of 0.3%.

The report also showed that the annual increase in producer prices accelerated to 3.4% in February from 2.9% in January, while economists had expected the yearly pace to remain unchanged.

Combined with the recent surge in crude oil prices tied to the Middle East conflict, the data has heightened concerns about the outlook for inflation.

Gold-related stocks dropped sharply as the price of the precious metal declined, pushing the NYSE Arca Gold Bugs Index down 6.4% to its lowest closing level in two months.

Airline stocks also experienced notable weakness, with the NYSE Arca Airline Index falling 3.0%.

Telecommunications shares were also under pressure, dragging the NYSE Arca North American Telecom Index down 2.7%.

Housing, retail and pharmaceutical stocks also posted notable declines, joining most other major sectors in moving lower.

U.S. equity futures moved lower on Thursday as escalating attacks on energy infrastructure in the Middle East sent oil prices sharply higher. The Federal Reserve kept its interest rate outlook unchanged, leaving open the possibility of a rate cut later this year, though Chair Jerome Powell cautioned investors against placing too much weight on the projections. Several other major central banks are also expected to keep borrowing costs unchanged as uncertainty surrounding the conflict with Iran persists. Meanwhile, shares of Micron (NASDAQ:MU) declined in premarket trading after the chipmaker unveiled plans for a significant increase in capital spending.

Futures point to weaker open

Futures tied to the major U.S. stock benchmarks signaled a softer start to trading after renewed strikes on key oil facilities in the Middle East drove crude prices higher.

At 04:16 ET, Dow futures were down 38 points, or 0.15%. S&P 500 futures slipped 11 points, or 0.2%, while Nasdaq 100 futures dropped 67 points, or 0.3%.

The main U.S. indices had already ended Wednesday’s session sharply lower after an attack on the South Pars oil field, located in the Iranian portion of the world’s largest natural gas reserve. Iran retaliated by targeting gas infrastructure in Qatar and Saudi Arabia, raising concerns that hostilities involving Iran, the United States and Israel could escalate into a broader regional conflict.

The strikes pushed energy prices upward, intensifying fears of renewed inflationary pressure across global economies. Investors are watching central bank policy decisions this week for signals on how policymakers expect inflation and interest rates to evolve in the coming months.

Adding to these concerns, U.S. producer price inflation data for February came in stronger than expected, suggesting that price pressures were already lingering in the U.S. economy before the escalation of the Iran conflict.

By the close of Wednesday’s trading, the Dow Jones Industrial Average had fallen 1.6%, the S&P 500 declined 1.4%, and the Nasdaq Composite dropped 1.5%.

Oil climbs past $112 per barrel

Oil prices continued to surge, with Brent crude futures — the global benchmark — rising well above $112 per barrel.

At 04:40 ET, Brent had jumped 7.8% to $115.78 per barrel, an increase of roughly $8. U.S. West Texas Intermediate crude futures rose 1.6% to $97.01 per barrel. The spread between WTI and Brent has widened to its largest level in over a decade, partly due to releases from the U.S. strategic petroleum reserve.

European gas prices also surged by more than 25% after Iranian strikes hit Ras Laffan in Qatar, the world’s largest liquefied natural gas production hub, which alone accounts for about one-fifth of global LNG supply.

“The move to strike Iranian energy assets is odd, given that the U.S. administration has been trying over the last couple of weeks to ease the upward pressure on oil prices,” analysts at ING said in a statement.

However, President Donald Trump denied that either the United States or Qatar had any role in the strike on South Pars, saying the attack was carried out by Israel.

The latest attacks on energy infrastructure have added further strain to oil markets already dealing with disruptions around the Strait of Hormuz. Roughly 20% of the world’s oil shipments pass through the narrow waterway south of Iran, but many vessels have avoided the route due to fears of potential Iranian retaliation.

There are few signs that the three-week-old conflict is easing. According to Reuters, U.S. officials are considering deploying thousands of additional troops to reinforce operations in the Middle East.

Fed leaves rates unchanged

Despite the surge in oil prices clouding the inflation outlook, the Federal Reserve’s policy decision on Wednesday left the door open to possible rate cuts later this year.

Lower interest rates can help stimulate economic growth and support a weakening labor market, though they also carry the risk of reigniting inflation.

In the Fed’s latest quarterly projections, 12 of the 19 policymakers indicated they still expect at least one rate reduction in 2026, the same outlook presented in December.

However, speaking after the central bank left rates unchanged within the 3.5%–3.75% range, Powell warned that investors should treat the projections with caution “even more than usual.”

He suggested that current borrowing costs are near a neutral level — neither stimulating nor restricting economic activity — implying limited room for rate cuts, especially if energy-driven inflation persists.

Global central banks under watch

The Bank of Japan also kept its policy rate unchanged on Thursday, as widely anticipated, while warning about the inflationary risks associated with rising energy prices.

The BOJ maintained its overnight call rate at 0.75% following an almost unanimous decision by its nine-member policy board. Board member Hajime Takata was the only dissenter, advocating a 25 basis point rate hike amid increasing inflation risks.

Officials highlighted risks to price stability over the medium and long term, noting that higher oil prices pose a particular challenge for Japan, which relies heavily on imported energy passing through the Strait of Hormuz.

“Risks to the outlook include the future course of the situation in the Middle East as well as developments in crude prices,” the BOJ said in a statement.

Economists at Capital Economics said the BOJ’s remarks also suggested that further rate increases could be considered if inflation continues to strengthen.

Later in the session, investors will turn their attention to policy announcements from the European Central Bank and the Bank of England, both of which are also expected to keep interest rates unchanged. Switzerland’s central bank likewise left rates on hold, citing increased economic uncertainty stemming from the Iran conflict.

Micron earnings

Micron Technology reported a sharp jump in revenue and profits for its fiscal second quarter, but its shares fell more than 4% in premarket trading after the company announced plans to significantly boost spending on manufacturing capacity.

The chipmaker said it plans to invest more than $25 billion in new fabrication facilities in fiscal 2026, about $5 billion more than previously forecast.

Micron reported adjusted earnings per share of $12.20 for the quarter ended Feb. 26, compared with $1.56 a year earlier and well above analyst expectations of $8.79. Revenue surged 196% year-on-year to $23.86 billion from $8.05 billion, exceeding estimates of $19.19 billion.

Gross margin reached a record 74.9%, rising 18 percentage points from the prior quarter.

“In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand,” Chief Executive Sanjay Mehrotra said.

U.S. stock futures are signaling a positive opening for markets on Tuesday, suggesting equities may build on the rebound recorded in the previous session.

The expected gains come as investors try to move past recent swings in crude oil prices tied to the escalating tensions in the Middle East.

Crude oil for April delivery is currently rising more than 2 percent after dropping by over 5 percent during Monday’s trading.

The latest increase in oil prices follows a wave of Iranian attacks on the United Arab Emirates, reportedly targeting Dubai International Airport and the Fujairah oil port in what marks a major escalation in the conflict.

A drone strike caused a fire at the Fujairah Oil Industry Zone in the UAE, although reports indicate that no casualties were recorded. The facility is located roughly 93 miles east of Dubai.

Reports of loud explosions and air defense activity emerged across the UAE, Saudi Arabia and Qatar as the U.S.-Israel conflict with Iran entered its eighteenth day.

The Israeli military said it had launched a “wide-scale wave of strikes” across Iran’s capital and was also intensifying operations against Iran-backed Hezbollah targets in Lebanon.

At the same time, several U.S. allies—including Germany, Spain, Italy, Australia and Japan—have declined President Donald Trump’s request to assist in securing the Strait of Hormuz, a critical passage for roughly one-fifth of the world’s energy shipments.

After trending lower over several sessions, U.S. stocks posted a strong recovery on Monday. All three major indexes ended the day higher, led by gains in technology shares.

The benchmarks closed below their intraday peaks but still recorded solid advances. The Nasdaq jumped 268.82 points, or 1.2 percent, to 22,374.18, the S&P 500 climbed 67.19 points, or 1.0 percent, to 6,699.38, and the Dow Jones Industrial Average rose 387.94 points, or 0.8 percent, to 46,946.41.

Monday’s rally coincided with a steep drop in oil prices, with crude for April delivery falling nearly 5 percent after having surged 8.6 percent last week.

Oil prices retreated after President Donald Trump urged other countries to help protect the Strait of Hormuz.

“I’m demanding that these countries come in and protect their own territory, because it is their territory. It’s the place from which they get their energy,” Trump told reporters aboard Air Force One on Sunday. “And they should come and they should help us protect it.”

“Why are we maintaining the Hormuz Strait when it’s really there for China and many other countries?” he asked. “Why aren’t they doing it?”

The decline in oil prices helped ease some of the market’s recent inflation concerns, although the Federal Reserve is still widely expected to keep interest rates unchanged at its upcoming meeting.

Value buying may also have supported the market’s recovery after the major averages closed at their lowest levels in more than three months last Friday.

On the economic front, a report from the Federal Reserve showed U.S. industrial production rose slightly more than anticipated in February.

The Fed said industrial production increased by 0.2 percent in February after a 0.7 percent gain in January. Economists had forecast a more modest increase of 0.1 percent.

Computer hardware companies were among the session’s top performers, with the NYSE Arca Computer Hardware Index advancing 2.6 percent.

Networking and semiconductor stocks also posted strong gains, contributing to the broader rally in the technology-heavy Nasdaq.

Outside the tech sector, steel stocks also moved higher, pushing the NYSE Arca Steel Index up by 1.7 percent.

Airline, brokerage and housing stocks also recorded notable gains, rising alongside most other major sectors.

U.S. equity futures moved lower early Tuesday as investors weighed rising geopolitical risks linked to Iran and potential disruptions to global energy supply. Oil prices climbed after fresh security incidents near the Strait of Hormuz, while gold edged higher ahead of a crucial Federal Reserve policy decision later this week. Meanwhile, the Reserve Bank of Australia raised interest rates, and Nvidia (NASDAQ:NVDA) CEO Jensen Huang predicted enormous future demand for artificial intelligence chips.

Futures edge lower

U.S. stock futures declined in early trading as markets monitored crude prices, which have remained above the $100-per-barrel mark amid the continuing conflict involving Iran.

At 04:24 ET, Dow Jones futures were down 163 points, or 0.4%. S&P 500 futures fell 28 points, also 0.4%, while Nasdaq 100 futures dropped 124 points, or 0.5%.

Wall Street’s main indices had finished the previous session higher, supported by hopes that a coalition of countries might assist the United States in reopening the Strait of Hormuz—a critical maritime route south of Iran that carries about one-fifth of the world’s oil shipments.

While the United Kingdom and France said they would consider discussions with Washington, several other U.S. partners—including Germany and Japan—declined President Donald Trump’s request for assistance in reopening the strategic shipping lane.

Trump previously suggested the United States might not require outside help to restore tanker traffic through the strait, though he noted that “numerous countries” had told him that “they’re on the way” to offering support.

Oil prices gain

Crude prices rose in early European trading Tuesday, highlighting ongoing concerns that maritime disruptions in the Strait of Hormuz could persist.

Several container shipping companies have largely halted voyages through the narrow passage, citing safety concerns for crews and challenges securing insurance coverage. Iran has also warned that it will block vessels carrying goods that could benefit the United States or its allies.

According to a report from the New York Times, a projectile struck a tanker anchored near a port in the United Arab Emirates early Tuesday. Citing the United Kingdom Maritime Trade Operations Center, the newspaper said the vessel, located near the port of Fujairah at the southern entrance of the strait, suffered only limited damage.

Authorities in the UAE also reported that a drone had caused a fire at a major oil facility.

In a separate development, Trump said he had requested that a planned meeting with Chinese President Xi Jinping next month be postponed. The U.S. president had previously warned the summit could be delayed if China did not use its influence to help reopen the strait. Iran, which exports oil to China, has continued allowing Chinese vessels to pass safely through the passage.

Gold edges up

Gold prices climbed in Asian trading as investors focused on oil market developments, the ongoing U.S.-Israel conflict involving Iran and several key central bank meetings scheduled for this week.

The precious metal briefly slipped below $5,000 per ounce in the previous session. Increased demand for safe-haven assets has been offset by concerns that the conflict could intensify inflationary pressures, while a stronger U.S. dollar has also tempered gains.

Gold has largely traded within a $5,000 to $5,200 per ounce range over the past three weeks.

Market attention is now shifting to a series of central bank policy decisions this week, particularly the Federal Reserve’s meeting on Wednesday. The Fed is widely expected to keep interest rates unchanged as policymakers assess the potential inflation impact of the Iran conflict.

The Bank of Canada will also meet on Wednesday, while the Bank of Japan, Swiss National Bank, Bank of England and European Central Bank are scheduled to announce interest rate decisions on Thursday.

RBA raises interest rates

The Reserve Bank of Australia raised its benchmark interest rate by 25 basis points on Tuesday, as expected, responding to a resurgence in inflation toward the end of 2025 and potential energy price shocks linked to Middle East tensions.

The central bank lifted its policy rate to 4.1%, marking its second rate increase this year after a similar move in February.

However, the decision revealed divisions among policymakers, with four of the nine members of the rate-setting board voting to keep rates unchanged.

Speaking at a press conference following the announcement, RBA Governor Michele Bullock said all board members agreed that tighter policy was needed, but differed over the timing—a comment markets interpreted as hawkish.

“Developments in the Middle East remain highly uncertain, but under a wide range of possible scenarios could add to global and domestic inflation,” the RBA said in a statement.

Nvidia CEO forecasts $1 trillion in AI chip sales

“This is the AI future. This is where AI wants to go.”

Nvidia CEO Jensen Huang offered an upbeat vision for artificial intelligence during a widely watched keynote at a developer conference in California on Tuesday.

Huang highlighted the rapid expansion of AI inference computing, which allows AI models to generate faster and more efficient responses to user queries. According to Huang, the technology has reached an “inflection” point, adding “[t]his is the secret sauce.”

During the presentation, Huang introduced new server systems that combine Nvidia’s latest Vera Rubin architecture with a next-generation chip developed by Groq, a startup focused on AI inference whose leadership Nvidia secured through a $20 billion licensing agreement last year.

The new platform is expected to deliver computing performance 350 times faster than Nvidia’s earlier Hopper graphics processing units.

Against this backdrop, Huang projected that Nvidia could generate $1 trillion in AI chip sales by the end of 2027, compared with roughly $500 billion expected for the current year.