US equity futures fell to their lowest levels in nearly seven months on Friday as escalating conflict in the Middle East and rising trade tensions intensified stagflation risks. Futures on the S&P 500, Dow, and Nasdaq 100 were down as much as 0.3%.
President Trump extended the pause on US strikes against Iranian energy infrastructure, but ongoing attacks in the region disrupted tanker traffic through the Strait of Hormuz. This month’s surge in energy prices had already reduced expectations of a Federal Reserve rate cut this year, and stagflation fears deepened after China launched a trade investigation against the US in response to Washington’s tariffs.
Major technology stocks traded sharply lower as investors cut risk exposure, undermining confidence in speculative AI-related positions. Nvidia and other chipmakers declined in pre-market trading after new research from Alphabet highlighted AI models that require less computing power. Meta has fallen nearly 10% since Wednesday, pressured by layoffs and a court ruling that deemed its social media platforms addictive.
