Stock Futures Rise as Oil Surges Amid Middle East Tensions

U.S. stock futures rose early Monday as investors monitored rising oil prices and escalating tensions in the Middle East. The increase came after U.S. strikes on Iran’s Kharg Island heightened fears of supply disruptions through the Strait of Hormuz, a critical waterway for global oil shipments. As of 10:10 p.m. ET, Nasdaq 100 and S&P 500 futures were up 0.5%, while Dow futures gained 0.4%. Oil prices surged, with Brent crude reaching $105.37 and WTI crude at $100.06 per barrel.

Allianz adviser Mohamed El-Erian warned that the conflict could shift from short-term disruptions to longer-term economic damage. He noted that the war’s consequences might extend beyond temporary disruptions, potentially causing structural damage that could take months to repair. Meanwhile, traders are also focusing on Nvidia’s GTC conference and the Federal Reserve’s March 17-18 policy meeting, where interest rates are expected to remain unchanged.

Several stocks drew attention on Monday. Meta Platforms (META) is reportedly considering layoffs affecting 20% or more of its workforce to offset spending on AI infrastructure. Micron Technology (MU) completed its acquisition of PSMC’s P5 site in Taiwan, expanding DRAM and HBM production to meet AI-driven demand. Sable Offshore (SOC) gained attention after the White House invoked the Defense Production Act to restore offshore oil operations in California. Oil-related stocks (USO, INDO, BATL, TPET, EONR) rose as crude prices climbed. Korro Bio (KRRO) saw upgrades from Cantor Fitzgerald and Raymond James, with price targets raised to $22 and $23, respectively.

Global markets showed mixed performance. The yield on the 10-year U.S. Treasury note hovered near 4.28%, while gold traded around $5,024 an ounce. Asian markets opened weaker, with declines in Australia and Japan. Economist Peter Schiff advised traders to 'buy the dip,' predicting that the war could accelerate global de-dollarization trends.