Wall Street futures regained ground after a steep drop triggered by escalating tensions in the Middle East and inflation worries. Oil prices surged following fresh U.S. strikes on Iranian targets and Iran’s threat to close the Strait of Hormuz, a critical energy shipping route, intensifying concerns over global supply disruptions. This development threatens to push transportation expenses higher, adding inflationary pressure on an economy already vigilant about rising prices.
Meanwhile, Oracle’s shares fell sharply in after-hours trading despite reporting its fiscal fourth-quarter results. Investors reacted negatively to the company’s elevated spending on artificial intelligence and data center expansion, alongside rising capital expenditures necessary for its cloud infrastructure buildout. Oracle’s massive backlog—estimated between $553 billion and $638 billion—raises questions about how efficiently the company can convert this demand into profit amid substantial cash outflows.
The market also saw renewed excitement around SpaceX as it launched a public offering priced at $135 per share, aiming for proceeds of up to $75 billion and an overall valuation near $1.75 trillion. The offering attracted institutional interest reportedly more than twice the amount being raised, signaling strong investor enthusiasm. While this bolstered risk appetite to some extent, such optimism remains tempered by tangible risks from oil supply shocks and inflation readings, underscoring a market divided between speculative growth prospects and entrenched economic uncertainties.