US attacks Iranian oil export base, sends Marines to Middle East
The United States attacked several military targets on Kharg Island, a major hub for Iranian oil exports, and ordered 2,500 Marines to deploy to the Middle East.
March 16 (Reuters) – U.S. stock index futures rose on Monday, with Meta stock among the top gainers on reports that mega-cap companies are preparing for large-scale layoffs related to AI, even as risk-taking is curtailed by rising oil prices due to the escalating Middle East conflict.
Meta Inc. rose 3% in pre-market trading after a Reuters report said it plans to cut more than 20% of its workforce to offset investments in expensive artificial intelligence infrastructure and prepare for AI-assisted workforce efficiency gains.
Instagram’s parent company joins similar announcements made by Amazon.com AMZN.O and Block XYZ.N earlier this year.
With semiconductor giant Nvidia’s annual developer conference scheduled for later on the same day and Micron’s MU.O results, AI is expected to continue to attract attention this week. Taiwanese electronics giant Foxconn<2317.TW>announced strong quarterly sales forecasts.
“If Jensen can show that NVIDIA has the hardware to not only build AI, but also lead in powering the everyday use of AI, this could be a key moment that builds confidence that NVIDIA will remain a defining name in the next phase of the AI race,” said Matt Blitzman, senior equity analyst at Hargreaves Lansdown, which owns Hargreaves Lansdown stock.
Nvidia rose 1%, and Micron rose 4% after securities firm RBC raised its price target. Tesla also rose 1% after Chief Executive Officer Elon Musk said the company’s artificial intelligence chip manufacturing TeraFab project would begin within seven days.
Oil prices were pegged at $100 a barrel, alarming investors as shipping through the crucial Strait of Hormuz remains largely shut and U.S. President Donald Trump’s calls for a coalition to ensure safe navigation appear futile.
The impact of rising energy costs is expected to be a major focus at central bank meetings around the world this week, with the Federal Reserve also having to consider tariff costs and signs of a weak job market.
Interest rates are expected to remain unchanged at the end of Wednesday’s two-day Fed meeting, according to data compiled by LSEG, with traders pushing back expectations for a rate cut of at least 25 basis points from July confirmed last month to October and beyond, according to data compiled by LSEG.
As of 5:10 a.m. ET, the Dow E-mini YMcv1 was up 88 points, or 0.19%, and the S&P 500 E-mini EScv1 was up 27.25 points, or 0.41%. The Nasdaq 100E Mini NQcv1 rose 124.25 points (0.51%).
U.S. stocks are performing better than their peers
Wall Street’s major indexes have been volatile since the war began as traders try to gauge its economic impact.
Despite the past two weeks of deforestation, U.S. stocks fared better than their global peers due to a rebound in weak tech stocks and the country’s status as a net oil exporter.
The CBOE Volatility Index .VIX fell 0.9 points to 26.31 on Monday, while futures linked to the interest rate-sensitive Russell 2000 Index RTYcv1 rose slightly.
On the data front, February industrial production and the New York Fed’s manufacturing index are scheduled to be released later in the day.
Elsewhere, U.S. and Chinese economic officials are expected to conclude their talks in Paris, with potential agreements on areas such as agriculture, critical minerals and controlled trade, which U.S. President Donald Trump and Chinese President Xi Jinping could raise in Beijing, people familiar with the talks said.
Investors were also paying close attention to movements in the foreign exchange market, as the Japanese yen JPY= hovered around 160 yen to the dollar, the lowest level since the previous central bank intervention.
Energy stocks like Occidental OXY.N and ConocoPhillips COP.N each rose more than 1%, while travel stocks like Delta DAL.O and Norwegian Cruises NCLH.N were firm.
Cryptocurrency stocks such as Strategy MSTR.O rose 2.7% while Bitcoin BTC=BTSP rose more than 2%.
(Reporting by Johan M. Cherian in Bangalore; Editing by Maju Samuel)
