Middle East Tensions and Inflation Fears Shake U.S. Markets

U.S. stock index futures slid on Thursday as escalating tensions in the Middle East drove crude prices higher, sparking inflation concerns. The Federal Reserve’s cautious approach to maintaining interest rates this year failed to buoy market sentiment, despite a positive forecast from Micron Technology.

Micron's shares dropped 4.5% premarket as investors grappled with the company's increased expenditure in the face of elevated borrowing costs. Other memory chip stocks, including SanDisk and Western Digital, also saw declines, while Nvidia dipped slightly. Brent crude surged to $115 per barrel, following Iran's attacks on Middle Eastern energy facilities, with U.S. benchmarks still lagging due to strategic reserve releases and higher freight expenses.

The Fed kept rates unchanged, with Chair Jerome Powell indicating anticipated inflation rises, and refrained from predicting the war’s economic impact. Falling stocks breached key moving averages, affecting various sectors, though energy price-sensitive travel stocks and precious metals miners took significant hits.