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US stocks were poised to build on losses on Thursday as oil prices spiked amid strikes on key Middle East energy hubs, stoking already intense inflation concerns on Wall Street.
Dow Jones Industrial Average futures (YM=F) nudged down 0.1%, coming off a bruising session that dragged the blue-chip benchmark to its lowest close this year. Contracts on the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) declined 0.2% and 0.3%, respectively.
Brent (BZ=F) crude futures surged over 10% to as high as $119 a barrel after Iran and Israel exchanged attacks on highly important oil and gas facilities. The escalation in hostilities stoked fears of a more severe fallout from the conflict than foreseen. Gains for US benchmark West Texas Intermediate crude (CL=F) lagged, little changed at around $96.
Markets were already contending with rising inflation forecasts from the Federal Reserve, which dampened expectations for interest-rate cuts. While the Fed signaled one cut could still be on the table this year, bets are policymakers will stand pat — especially after hawkish comments from Chair Jerome Powell.
Looking ahead, focus turns to fresh economic data, including weekly jobless claims and the Philadelphia Fed Manufacturing Index, due later Thursday.
On the corporate front, shares of Micron (MU) dropped in premarket as the chipmaker’s AI spending plans overshadowed strong earnings. Meanwhile, Alibaba (BABA) stock slid after a 67% plunge in quarterly profit underscored the need for a payoff from its AI investments.
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Alibaba’s 67% profit plunge shows urgent need to monetize AI
Alibaba (BABA) stock slumped 5% during premarket hours on Thursday as the e-commerce giant’s earnings fell while revenue barely grew. Alibaba reported a 2% rise in sales to $41.3 billion for the three months ended December. Net income fell 67%, its worst result since 2024, caused by the company’s heavy spending on promotions.
Bloomberg News reports:
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Micron shares slip as hefty spending plans eclipse strong AI-fueled earnings
Micron (MU) stock fell 5% before the bell on Thursday following the chipmaker’s earnings report. The company’s plan to increase capital expenditure left investors feeling nervous. The company’s AI-fueled earnings for the quarter beat analysts’ estimates.
Reuters reports:
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Brent tops $115 after exchange of strikes on major Mideast hubs
Oil prices surged after Iran and Israel traded strikes on some of the Middle East’s most important energy facilities, spurring fears of a more severe impact from the almost three-week-old conflict.
Bloomberg reports:
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The SEC approves tokenisation of Nasdaq stocks
Reuters reports:
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Gold pushes up after week of falling
Bloomberg reports:
