Middle East Tensions Spark Volatility Amid US Tariff Escalation
US stock futures are mixed early Friday as tensions escalate in the Middle East. The US and Iran have been locked in a standoff, and Iran has reportedly rejected a US ceasefire proposal mediated by Iraq. President Donald Trump has signaled that major military strikes could be under consideration.
Markets ended the previous session lower, while Brent crude surged past $100 per barrel for the first time since May. This has fueled fresh concerns about inflation and interest rates ahead of the Federal Reserve's meeting next week.
The new tariffs imposed by Trump on imports from around 60 trading partners are also adding to macro uncertainty. The measures impose duties of 10% to 12.5% on most major trading partners following an investigation into alleged forced-labor practices in global supply chains.
Despite the risk-off mood, the AI investment theme remains intact, with semiconductor companies reporting robust demand ahead of earnings from Microsoft, Meta Platforms, Amazon, and Apple next week.