Geopolitical Tensions in Middle East Pressure Global Equities; Intel Surges on AI Guidance

Global equity markets are facing downward pressure as investors weigh the risk of escalating conflict in the Middle East. Concerns that diplomatic negotiations with Iran have stalled are fueling fears of renewed disruptions to shipping in the Strait of Hormuz, a critical artery for global oil supplies. This geopolitical uncertainty weighed heavily on Wall Street, with the S&P 500 declining 0.4% and the Nasdaq 100 falling 0.6%. The contagion is spreading to Asian markets, where index futures for Japan, South Korea, and Australia indicated lower openings on Friday, taking cues from the lackluster US session. Amidst the broader sell-off, the semiconductor sector remains a bastion of strength, marking its 17th consecutive day of gains. This trend was highlighted by Intel Corp., which saw its shares surge approximately 15% in after-market trading. The rally in Intel shares was driven by a robust outlook centered on artificial intelligence, which helped the company compound gains already achieved during the regular trading session. Traders are currently balancing the bearish headwinds of geopolitical instability against the bullish momentum of the AI revolution. While energy markets are reacting to the potential for supply shocks, the tech sector's resilience suggests a divergence in investor sentiment based on fundamental growth drivers versus macro risks.