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US STOCKS-Wall St set for lower open as investors weigh Middle East war risks
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US STOCKS-Wall St set for lower open as investors weigh Middle East war risks
Mar 11, 2026 6:41 AM

* Futures off: Dow 0.58%, S&P 500 0.32%, Nasdaq 0.41%

* Middle East conflict raises inflation concerns,

complicating Fed's policy decisions

* Broadcom jumps on strong AI chip revenue forecast

* Energy and defense stocks edge up as Middle East

conflict rages on

(Updates to before markets open)

By Johann M Cherian and Ragini Mathur

March 5 (Reuters) - Wall Street's main indexes were on

track to open lower on Thursday as the Middle East conflict

entered its sixth day, raising concerns of fresh inflation

pressures that could complicate the Federal Reserve's monetary

policy decisions.

Helping limit the losses was a strong forecast from

Broadcom that projected its artificial intelligence

chip revenue would exceed $100 billion next year, sending shares

of the chip designer up 6.4% in premarket trading.

Despite the U.S.-Israeli air war against Iran showing no signs

of cooling off, Wall Street's main indexes have fared better

than their European and Asian counterparts this week, aided

primarily by a rebound in technology stocks that bore the brunt

of February's selloff.

The tech-led recovery in the prior session helped the Nasdaq

recover all weekly losses, putting it on track to close the week

in positive territory if those gains hold through Friday.

Still, a prolonged disruption in shipping through the

strategic Strait of Hormuz is likely to further fuel inflation

pressures through energy and shipping costs, at a time when U.S.

tariffs have already complicated the Fed's monetary policy

outlook.

Any signs that crude prices could hit $100 a barrel would be

worrisome for markets and investors were on the lookout for

reports that the conflict could be nearing its end.

Policymakers have broadly acknowledged the need to wait and

gauge the impact on the economy, although investors are

anticipating price pressures to delay a 25-basis-point interest

rate cut by the Federal Reserve to September from July,

according to LSEG-compiled data.

"For the past couple of years, bringing inflation down has

been the Fed's entire focus, and they were finally making

progress. But if energy stays expensive, inflation could start

climbing again and that would force the Fed to rethink its

plans," said Adam Sarhan, chief executive of 50 Park

Investments.

At 08:43 a.m. ET, Dow E-minis were down 283 points,

or 0.58%, S&P 500 E-minis were down 22.25 points,

or 0.32%, and Nasdaq 100 E-minis

were down 103.25 points, or 0.41%.

The CBOE volatility index was up 0.95 points at 22.1,

reflecting broader investor caution, while futures tied to the

rate-sensitive Russell 2000 index were down 0.9%.

Travel stocks that are the most sensitive to energy prices were

down. Delta Airlines slipped 1.1%, while Norwegian

Cruise dipped 0.6%.

A prolonged conflict could also disrupt supplies of key

semiconductor manufacturing materials and impede data center

deployment by AI leaders in the Middle East. Chip stocks were

mixed, with Nvidia ( NVDA ) down 0.7%, while Marvell Technology ( MRVL )

rose 1.4%.

Energy companies such as Cheniere Energy and Valero

Energy ( VLO ) were up about 1%, while defense stocks such as

RTX and Aerovironment ( AVAV ) added 0.6% and 1.8%,

respectively.

Among others, Trade Desk ( TTD ) jumped 21% after a report that

OpenAI held early talks with the advertising technology firm to

sell ads.

Supermarket chain operator Kroger ( KR ) fell 2.7% after

forecasting annual sales and profit largely below estimates.

Meanwhile, data showed the number of Americans filing new

applications for unemployment benefits was unchanged last week.

Fresh Fed remarks from U.S. Fed Vice Chair Michelle Bowman are

due later in the day, ahead of the crucial non-farm payrolls

report on Friday.

(Reporting by Johann M Cherian, Ragini Mathur and Pranav

Kashyap in Bengaluru; Editing by Sherry Jacob-Phillips and

Devika Syamnath)

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