U.S. equity futures retreated on Friday, with technology shares facing heightened pressure, as further U.S. military operations targeting Iran escalated regional tensions and investors weighed continued Federal Reserve caution on inflation. The negative sentiment was accelerated by sizable losses in major semiconductor stocks during the previous session.
At 4:25 p.m. (Bangkok Time), Dow Jones Industrial Average futures contracted 357 points, representing a 0.68% decline. S&P 500 futures dropped 0.96%, and contracts tied to the Nasdaq-100 fell 1.9%. The tech-heavy Nasdaq, in particular, came under heavier selling amid ongoing scrutiny of the sector.
The market’s risk-off tone followed a series of nightly military actions by the U.S. in Iran, now in its sixth consecutive round, leading to retaliatory measures from Tehran and increased conflict across the Middle East. Recent Iranian strikes on targets in Qatar contributed to a rise in crude oil prices, amplifying concerns over energy costs.
In Thursday’s regular session, losses among chipmakers intensified broader declines. The S&P 500 ended Thursday down 0.51%, while the Nasdaq Composite slid 1.47%. The Dow finished 105.67 points lower, a drop of 0.2%.
The VanEck Semiconductor ETF fell nearly 4%, reflecting heavy profit-taking after Taiwan Semiconductor Manufacturing Co. reported higher second-quarter earnings but raised its full-year capital spending guidance. Shares in TSMC declined more than 2%, and peers including Marvell Technology, STMicroelectronics, and Micron followed suit.
Market participants are also absorbing commentary from Federal Reserve Vice Chair Philip Jefferson, who suggested policymakers could revisit interest rate settings if inflation does not moderate, pointing to persistent effects from previous tariffs and elevated energy expenses.
Economic data due Friday include housing starts and the import price index at 8:30 a.m. (Eastern Time), with a preliminary read on the University of Michigan Consumer Sentiment Index scheduled for 10:00 a.m. (Eastern Time). On the corporate side, quarterly results are expected from Regions Financial, Truist Financial Corporation, Travelers Companies, Fifth Third Bancorp, Diginex, and U.S. Gold Corp.
