By Anietie anii-bassey
Wall Street appeared set for a positive start to trading on Monday despite ongoing volatility in global markets, as investors closely monitored the latest developments in the escalating conflict between Israel and Iran and their potential impact on energy supplies and the broader world economy.
Before the opening bell, futures tied to the S&P 500 gained 0.6%, while Nasdaq futures advanced 1.2%, signaling renewed strength in technology shares after sharp losses at the end of last week. Futures for the Dow Jones Industrial Average also moved higher, climbing 0.2%.
The improved outlook followed a turbulent trading session on Friday that saw U.S. stocks suffer their steepest one-day decline since October. Technology companies were among the hardest hit, dragging major indexes lower and fueling concerns over investor confidence.
Early Monday, however, some major chipmakers and technology firms recovered part of those losses. Memory chip manufacturer Micron surged 7.2% in premarket trading, while server and data storage company Super Micro Computer climbed 6.3%, helping lift sentiment across the sector.
Despite the expected recovery on Wall Street, markets across Asia experienced heavy selling pressure. South Korea’s benchmark Kospi index led the regional decline, plunging 8.3% as investors dumped technology shares amid growing fears over geopolitical instability and economic uncertainty. Electronics giant Samsung Electronics fell 10.2%, while semiconductor producer SK Hynix lost 7.7%.
Japan’s Nikkei 225 also posted steep losses, dropping 3.9% to close at 64,024.60. The decline came as Japanese authorities revised the country’s first-quarter annualized economic growth estimate downward from 2.1% to 1.8%, adding another layer of concern for investors already rattled by global events.
Elsewhere across Asia, Taiwan’s Taiex index fell 3.5%, Hong Kong’s Hang Seng Index declined 1.3% to finish at 24,642.33, and China’s Shanghai Composite Index slipped 1.7% to close at 3,959.34.
Oil markets remained exceptionally volatile throughout the day as traders reacted to rapidly changing developments in the Middle East.
Crude prices initially surged after Israel launched a new round of airstrikes early Monday targeting locations in central and western Iran. The attacks came in response to missile launches attributed to Iran, further intensifying hostilities between the two longtime regional rivals.
Iranian state television reported explosions in several major cities, including Isfahan, Tabriz, and the capital Tehran, although authorities did not immediately provide further details about the incidents or the extent of the damage.
The sharp rise in oil prices began to reverse after the Iranian military announced shortly after 7 a.m. Eastern Time that it would suspend offensive operations against Israel. The announcement fueled hopes that the latest escalation might not develop into an even broader conflict, easing some concerns in energy markets.
By 8 a.m. Eastern, Brent crude, the international benchmark for oil prices, was trading at $94.21 per barrel, up $1.12 after having jumped as much as $4.60 overnight. U.S. benchmark West Texas Intermediate crude gained $1 to reach $91.54 per barrel.
The conflict, which began on February 28 with military strikes involving the United States and Israel against Iran, has continued to disrupt the global economy. Energy prices have climbed significantly during the months-long confrontation, contributing to rising transportation costs and increasing prices for everyday goods, including food and other essential commodities.
Diplomatic efforts to transform an April ceasefire into a permanent peace agreement have repeatedly stalled. Although American and Iranian negotiators reportedly reached a tentative understanding last week to extend the ceasefire arrangement, the deal has yet to be formally finalized. The latest exchange of attacks has further complicated negotiations and raised fresh doubts about the prospects for a lasting settlement.
The ongoing hostilities have also severely affected international energy markets by disrupting crude oil shipments through the strategically vital Strait of Hormuz, one of the world’s most important maritime routes for petroleum exports.
European markets showed a mixed performance by midday. France’s CAC 40 slipped 0.2%, Germany’s DAX fell 0.4%, while Britain’s FTSE 100 managed to edge 0.2% higher despite the uncertain global outlook.
Investors are also continuing to assess the implications of the latest U.S. economic data. Friday’s strong employment report reinforced expectations that the Federal Reserve may pursue additional interest rate increases later this year, contributing to the sharp sell-off that pushed the S&P 500 to its largest single-day decline in several months.
As financial markets begin the new trading week, attention remains firmly fixed on developments in the Middle East, where any further escalation or signs of diplomatic progress could quickly influence global stock indexes, oil prices, and investor sentiment worldwide.
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