Stock Market Update

Equity futures point to a lower opening this morning as rising fuel prices continue to put broad pressure on the market. 

The major averages finished lower across the board yesterday amid a surge in oil prices, though they finished well off of their worst levels following some headlines in the afternoon around possible mitigation strategies. Bloomberg reports that this will not include the Treasury trading oil futures to help bring down prices.

Crude oil is currently up $5.22 (+6.4%) to $86.23 per barrel. Notably, Financial Times reports that Qatar has warned the war in Iran could force Gulf oil producers to shut down all production within days. 

Bloomberg reports that maritime traffic through the Strait of Hormuz remains at a nearly complete halt. 

The war in Iran and the resulting surge in fuel prices continue to be a major overhang for the market, with the major averages entering today's session mostly lower for the week. 

Elsewhere, the market has a sizable batch of economic data to review this morning, including the February Employment Situation Report and January Retail Sales (Briefing.com consensus -0.1%) at 8:30 a.m. ET. 

In corporate news:

• Costco (COST 978.87, -3.70, -0.4%) beat EPS expectations by $0.03, reported revenues in-line, and reported adjusted comparable sales of 6.7%. 
• The U.S. is mulling requiring permits for NVIDIA (NVDA 180.66, -2.68, -1.5%) and Advanced Micro Devices (AMD 196.95, -2.50, -1.3%) global AI chip sales, according to Bloomberg. 
• Marvell Technology (MRVL 84.17, +8.49, +11.2%) beat EPS expectations by $0.01 and reported revenues in-line. The company guided Q1 EPS and revenues above consensus. 

Reviewing overnight developments:

Equity indices in the Asia-Pacific region ended the week on a mixed note. Japan's Nikkei: +0.6%, Hong Kong's Hang Seng: +1.7%, China's Shanghai Composite: +0.4%, India's Sensex: -1.4%, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: -0.9%.

In news:

• The Wall Street Journal reported that Treasury Secretary Bessent will ask China to reduce its purchases of oil from U.S. adversaries ahead of President Trump's planned visit to China.
• Toyota supplier Denso agreed to acquire chipmaker Rohm for about $8 billion.
• South Korea's vice finance minister said that a price ceiling for petroleum prices will be established.

In economic data:

• South Korea's February CPI 0.3% m/m (expected 0.4%; last 0.4%); 2.0% yr/yr (expected 2.1%; last 2.0%). January Current Account surplus $13.26 bln (last surplus of $18.70 bln)

Major European indices are on track for a lower finish to the week. STOXX Europe 600: -1.0%, Germany's DAX: -0.8%, U.K.'s FTSE 100: -0.7%, France's CAC 40: -0.9%, Italy's FTSE MIB: -1.0%, Spain's IBEX 35: -1.1%.

In news:

• European Central Bank policymaker De Guindos said that the central bank's policy stance could change if inflation expectations are affected by the war with Iran.
• Lufthansa reported in-line results for Q4.
• Shipping giant Maersk suspended its routes from the Far East to the Middle East and from Middle East to Europe.

In economic data:

• Eurozone's Q4 GDP 0.2% qtr/qtr (expected 0.3%; last 0.3%); 1.2% yr/yr, as expected (last 1.4%). Q4 Employment Change 0.2% qtr/qtr, as expected (last 0.2%)