Markets are reacting to escalating tensions in the Middle East, particularly following reports that Iran attacked a Singapore-flagged cargo ship in the Strait of Hormuz, a critical oil shipping route. This incident has raised fears about potential disruptions to oil supplies, especially as Iraq hints at possibly leaving OPEC if its output demands are not met.
In the tech sector, Micron's impressive earnings report led to a 15% surge in its stock, driven by increased demand for memory products amid the AI boom. However, this positive news did not extend to the broader sector, as Apple shares fell over 6% after the company announced price increases for its MacBooks and iPads, reflecting ongoing challenges within the tech industry.
Additionally, comments from Federal Reserve officials regarding inflation suggest a cautious outlook, with Chicago Fed President Austan Goolsbee noting that inflation remains high, while New York Fed President John Williams anticipates a downward trend in inflation readings