Key Takeaways
- Brent crude surged over $3 to $121.64 following reports that the U.S. military is considering intervention in the Strait of Hormuz amid the outbreak of war with Iran.
- U.S. Crude Futures jumped to $109.64, hitting highs not seen since early April, as geopolitical instability threatens global energy supplies.
- Scotiabank adjusted major tech targets, lifting Amazon (AMZN) to $325 while lowering Microsoft (MSFT) to $550.
- The U.S. Dollar Index rose to 98.990, gaining 0.13% as investors sought safe-haven assets amid escalating Middle East tensions.
- China’s State Planner allocated 91.5 billion yuan in special treasury bonds specifically for industrial equipment upgrades.
Geopolitical Tensions Drive Energy Markets
Global energy markets are in a state of high volatility following the outbreak of war in Iran. Brent crude rose significantly to $121.64, while U.S. West Texas Intermediate (WTI) futures climbed over $2 to reach $109.64.
Reports indicate that the U.S. Army is considering taking control of sections of the Strait of Hormuz. This move aims to restore safe passage for global shipping as military options are presented to the Trump administration.
In a shift in global trade, the United States has become the largest exporter of naphtha to South Korea. This transition follows the disruption of traditional supply lines due to the conflict in the Middle East.
Analyst Adjustments in the Tech Sector
Wall Street analysts are recalibrating expectations for major technology firms. Scotiabank raised its price target for Amazon (AMZN) from $275 to $325, signaling confidence in the e-commerce giant’s growth trajectory.
Conversely, Scotiabank lowered its outlook for Microsoft (MSFT), cutting the price target from $600 down to $550. In the semiconductor space, Susquehanna showed optimism for KLA Corp (KLAC), lifting its target price to $1,700.
Financial services also saw revisions, with JPMorgan lowering its target for FICO (FICO) to $1,225. Despite these mixed signals, Seoul shares traded higher late Thursday morning, supported by robust regional tech earnings.
Currency and Macroeconomic Developments
The U.S. Dollar Index climbed 0.13% to 98.990, reflecting a flight to quality. The Euro (EUR) felt the pressure of the strengthening greenback, dropping 0.1% to trade at $1.1663.
In the U.S., the House of Representatives is advancing a Republican-led plan to enable a $70 billion bill. These funds are earmarked for ICE and other border security agencies as domestic policy remains a high priority.
Meanwhile, China continues its fiscal stimulus efforts to support domestic industry. The state planner announced the second batch of special treasury bonds, worth 91.5 billion yuan, dedicated to large-scale equipment upgrades.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.