Futures tied to the main U.S. stock indices moved slightly higher on Friday as investors continued to evaluate the escalating conflict involving Iran, which has yet to show signs of easing. Oil prices remain on track for strong weekly gains amid concerns over supply disruptions through the crucial Strait of Hormuz. Meanwhile, markets are preparing for the release of the February U.S. employment report, while shares of Marvell Technology (NASDAQ:MRVL) surged after the chipmaker lifted its revenue outlook on the back of strong artificial intelligence-driven demand for data centers.
Futures rise as Iran conflict continues
U.S. equity futures posted modest gains, though market sentiment remained cautious as the conflict involving Iran entered its seventh day.
At 03:06 ET, Dow futures were up 50 points, or 0.1%. S&P 500 futures rose 8 points, or 0.1%, while Nasdaq 100 futures advanced 65 points, or 0.3%.
Wall Street’s main indices had declined in the previous session, weighed down by rising oil prices and growing fears that supplies could be disrupted through the Strait of Hormuz south of Iran.
U.S. crude prices have climbed nearly 21% since the United States and Israel carried out coordinated strikes against Iran. The conflict has since spread across parts of the Middle East and the Persian Gulf, raising concerns about oil flows from the region.
Average gasoline prices in the United States have increased by 27 cents since the start of the attacks, reaching $3.25 per gallon, Reuters reported, citing data from travel group AAA.
With fuel costs rising, some investors are increasingly worried that a prolonged conflict could trigger renewed inflationary pressures, potentially delaying any Federal Reserve interest rate cuts later this year. U.S. Treasury yields have moved higher, putting additional pressure on equities.
Outside the United States, higher oil prices have weighed on Asian markets and currencies, particularly in South Korea, which relies heavily on oil imports passing through the Strait of Hormuz. South Korea’s Kospi index ended the session roughly unchanged but has declined 10.56% over the past week. Major European indices are also heading for their steepest weekly losses since last April.
Oil prices set for strong weekly gains
Crude prices remain on course for significant weekly increases as traders worry that the conflict could disrupt shipping through the Strait of Hormuz, a route that carries roughly one-fifth of global oil supplies.
In an attempt to calm markets, the United States has announced it will temporarily allow Russian oil sales to India for a period of 30 days.
“While this might help put some immediate downward pressure on the market, it is not a game-changer. The only way for prices to come down on a sustained basis is a resumption of oil flows through the Strait of Hormuz,” analysts at ING said in a note.
According to Reuters, the U.S. Treasury Department is also expected to introduce measures designed to help contain energy prices through financial market mechanisms.
Meanwhile, the military conflict shows little sign of easing. Israel has carried out strikes on Hezbollah targets in Lebanon and on infrastructure in Tehran, while Iran’s Revolutionary Guards have launched drones and missile attacks toward Tel Aviv, according to media reports.
Iran has also delayed naming a successor to Ayatollah Ali Khamenei, who was killed in U.S. and Israeli airstrikes, the New York Times reported. Mojtaba Khamenei, the son of the late supreme leader, is widely seen as the leading candidate, though U.S. President Donald Trump described the potential appointment as “unacceptable.”
Jobs report due
Although the Middle East conflict has dominated headlines this week, investors are also awaiting key economic data on Friday with the release of the February U.S. employment report.
Economists expect the U.S. economy to have added around 58,000 jobs last month, down from 130,000 in January, while the unemployment rate is forecast to remain steady at 4.3%.
Federal Reserve officials have been closely monitoring labor market conditions, which have remained relatively resilient even though hiring activity has been subdued. The Fed has kept interest rates unchanged while waiting for clearer signals about the future path of employment.
Artificial intelligence developments may also influence how the labor data is interpreted. Analysts and workers have warned that the rapid adoption of AI tools could eventually lead to widespread white-collar job losses as companies use the technology to improve productivity and reduce costs. Concerns intensified last week after Jack Dorsey’s payments company Block announced plans to cut roughly 40% of its workforce.
Marvell shares surge
Shares of Marvell Technology jumped more than 14% in after-hours trading after the semiconductor firm raised its annual revenue forecast, citing strong spending on data center infrastructure driven by artificial intelligence.
Major technology companies such as Amazon and Microsoft are investing heavily in AI and plan to spend billions expanding the data centers required to support the emerging technology.
Companies like Marvell, which develops networking and connectivity technology that allows data to flow efficiently within large computing systems, have benefited significantly from this surge in spending.
Chief Executive Matt Murphy told investors the company now expects fiscal 2027 revenue to increase by more than 30% year-on-year to nearly $11 billion. Marvell’s data center segment in particular is expected to drive revenue growth in each quarter of fiscal 2027.
Nvidia reportedly halts China chip production at TSMC
Nvidia (NASDAQ:NVDA) has reportedly asked semiconductor manufacturer TSMC (NYSE:TSM) to halt production of chips destined for China as the company continues to face restrictions linked to U.S. export controls, according to the Financial Times.
The report said Nvidia has shifted manufacturing capacity at TSMC away from its H200 processors toward the next-generation Vera Rubin platform.
The move suggests Nvidia no longer expects significant sales of its H200 chips in China, especially given ongoing uncertainty over U.S. export rules and increased regulatory scrutiny in China.
President Trump indicated in December that Nvidia would be allowed to sell the H200 chip in China. Although the processor is not the newest in Nvidia’s lineup, it remains the most advanced AI chip the company is permitted to export to China under current U.S. restrictions.
However, sales in the country have reportedly slowed as U.S. lawmakers push for tighter controls and Chinese regulators seek to reduce reliance on foreign AI technology as part of Beijing’s broader push for technological self-sufficiency.