US equity futures fell to their lowest levels since November on Friday, as surging energy prices deepened concerns about stagflation. March futures for the three main indices, which expire today, were down about 0.5%.
Energy commodities remained sharply higher after renewed attacks on critical infrastructure. Recent incidents targeting Qatar’s largest gas field and key refineries in Kuwait were compounded by reports that the US is considering seizing Iran’s oil export facilities on Kharg Island. These developments reinforced the pro-inflation backdrop and intensified the sell-off in bonds, tightening financial conditions for credit‑sensitive companies.
The pressure on markets was exacerbated by this week’s hotter‑than‑expected PPI data and hawkish signals from FOMC members in their latest economic projections.
At the single‑stock level, Supermicro plunged 25% after its CEO was charged with smuggling Nvidia chips to China. In contrast, FedEx rose 10% on the back of strong guidance, while bank stocks edged higher amid expectations that upcoming regulatory changes will likely reduce their capital requirements.
