Dow Futures remain just under the flatline, as market participants continue to speculate on the potential for U.S. involvement in the escalating tensions between Israel and Iran. The White House has indicated that President Donald Trump is expected to reach a decision on the issue within a fortnight, as European foreign ministers prepare to engage with Iranian officials in an effort to alleviate regional tensions. Brent crude prices have experienced a decline; however, they are poised to conclude the week on a positive note, amid ongoing concerns regarding potential supply disruptions stemming from the conflict.
U.S. stock futures experienced a slight decline on Friday, as market participants monitored the evolving situation in the ongoing air conflict between Israel and Iran, which has now extended into its second week. The Dow futures contract experienced a decline of 89 points, equating to 0.2%, while S&P 500 futures decreased by 10 points, also 0.2%. Meanwhile, Nasdaq 100 futures saw a reduction of 32 points, or 0.1%. On Thursday, the primary indices on Wall Street remained closed due to a public holiday, while global equities experienced a downturn and the U.S. dollar appreciated, as investors sought perceived safe havens amid the uncertainty surrounding potential U.S. engagement in the Israel-Iran conflict.
Markets were evaluating a series of central bank decisions, including announcements from the Bank of England, Norges Bank, and Swiss National Bank. The uncertain economic landscape, influenced by Trump’s frequently unpredictable trade policies, significantly shaped the considerations of policymakers. On Wednesday, officials at the Federal Reserve opted to maintain interest rates at their current levels, embracing a cautious approach regarding forthcoming policy adjustments. Investors have been keenly anticipating any elucidation regarding Trump’s intentions. Earlier this week, Trump indicated that he “may” or “may not” engage in military action against Iranian nuclear facilities.
According to the White House, Trump has indicated that he will decide whether to participate in Israel’s air bombardments against Iran “within two weeks.” In a statement delivered on Thursday afternoon, White House Press Secretary Karoline Leavitt articulated that the timeline was “based on the fact that there is a substantial chance of negotiations that may or may not take place with Iran in the near future.” She refrained from commenting on whether Trump would seek Congress’s approval prior to initiating any military action against Iran.
The ongoing exchange of air strikes between Israel and Iran has now entered its eighth day. The conflict commenced with unexpected assaults by Israel targeting Iranian nuclear installations, a strategy that Israel has justified as essential to thwart Tehran’s advancement of nuclear weapons capabilities. Iran has retaliated with a series of strikes and asserts that its nuclear program is intended for peaceful purposes. Neither party has signaled a willingness to concede. On Friday, European foreign ministers will convene in Geneva with their Iranian counterpart in an effort to alleviate the tensions.
Brent crude futures experienced a decline on Friday in response to remarks from the White House, yet the contract remains poised for a third consecutive week of gains. Brent crude futures, serving as a key price indicator for the global oil market, experienced a decline of 2.3%, settling at $77.02 per barrel. The U.S. West Texas Intermediate crude futures for August decreased by 0.1% to $73.84 per barrel. Oil prices experienced a surge of nearly 3% on Thursday, despite trading volumes remaining relatively subdued owing to the U.S. holiday. Oil prices have generally increased since the onset of the Israel-Iran conflict, as traders express concerns that the situation may escalate into a broader regional crisis, potentially jeopardizing vital supply routes, especially in the Strait of Hormuz, located along Iran’s southern coastline. Meanwhile, the U.S. dollar experienced a decline in momentum, as “markets still struggle to gauge the probability of the U.S.” joining the conflict, analysts at ING noted in a communication to clients.
DIY chain Home Depot is making an offer for building-products distributor GMS, the Wall Street Journal has reported, citing people familiar with the matter. The precise valuation of Home Depot’s offer remains undetermined, as reported by the WSJ. Shares in GMS experienced a significant increase during after-hours trading. On Wednesday, dealmaker Brad Jacobs’ QXO revealed that it had put forth an unsolicited proposal to acquire GMS for approximately $5 billion, translating to $95.20 per share in cash. GMS, headquartered in Georgia and specializing in the supply of tools and building materials for both consumers and contractors, has become the focal point of speculation regarding a possible acquisition. This interest arises as companies seek to capitalize on the recent demand for housing, despite the prevailing economic uncertainties linked to tariffs.
SoftBank Group Corp. founder Masayoshi Son is seeking to partner with chipmaker TSMC and the Trump administration to build a $1 trillion, artificial intelligence-dedicated complex in the U.S., Bloomberg News reported on Friday. According to a Bloomberg report, sources familiar with the billionaire’s vision indicate plans for the establishment of a manufacturing hub and industrial complex that may compete with China’s Shenzhen. The complex will feature production lines dedicated to the construction of AI-powered industrial robots, primarily focused on revitalizing high-tech manufacturing within the U.S., a significant objective of the Trump administration. The proposed project is referred to as “Project Crystal Land,” according to the Bloomberg report, and it remains uncertain whether TSMC has already engaged in the venture. Son has reportedly engaged in discussions regarding potential tax incentives with U.S. government officials, including Secretary of Commerce Howard Lutnick, and has also contacted other technology firms concerning the project.