North American Morning Briefing: Stock Futures Down as Oil Rises Further

OPENING CALL

Stock futures were down as investors continue to eye developments in the Middle East and ahead of employment data.

Oil futures traded at their highest levels since the summer of 2024 on Friday as the war against Iran entered a seventh day with no sign of it ending anytime soon.

Container shipping groups A.P. Moller-Maersk and Hapag-Lloyd suspended key shipping routes into and out of the Middle East as the fallout from the war in the region continues to disrupt trade flows.

"While geopolitical tremors in the Middle East have kept investors' eyes on the horizon, the focus shifts back to the data front as the Bureau of Labor Statistics will release the February jobs report, a data point that could fundamentally reshape the narrative for the Federal Reserve," said Tickmill Group.

Rising energy costs due to the Middle East conflict have reignited fears about inflation and caused markets to lower expectations of the Fed cutting interest rates in the coming months.

Investors will pay attention to the U.S. jobs figures as strong data could indicate that "the economy can still withstand higher-for-longer rates", Tickmill Group said. Meanwhile, a weak jobs report could heighten fears about economic weakness.

However, the outcome is unlikely to change the Fed's pausing stance near term. "It seems difficult to envisage the jobs report materially moving the needle from a policy perspective, with the FOMC firmly in wait-and-see mode for now," Pepperstone said.

Analysts in The Wall Street Journal's poll forecast the addition of 50,000 jobs in February, compared with 130,000 in January.

Stocks to Watch

Costco posted strong quarterly results, boosted by both product sales and membership fees.

Marvell Technology posted strong quarterly earnings, driven by AI demand, plus upbeat revenue projections. The stock surged 12% premarket.

Declining sales for Gap's Athleta brand dented the clothes company's quarterly results. Shares skidded 7% premarket.

Nike expects to record a charge of $300 million related to cost-reducing efforts, including job cuts. In January, Nike said it would lay off about 775 workers, or 1% of its workforce.

Watch For:

U.S. Employment Report for February; U.S. Retail Sales for January; Federal Reserve Bank of Boston President Susan Collins speaks at Springfield Regional Chamber Outlook 2026 event

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MARKET WRAPS

Forex:

The dollar fell and the euro also declined.

The greenback could rise if upcoming jobs data are solid enough to encourage a further reduction in Fed interest-rate cut expectations, MUFG said.

The recent rise in energy prices is a clear euro negative but a narrowing of interest-rate differentials against the dollar could limit its falls, ING said.

The euro remains strong on a trade-weighted basis despite its recent pullback on the Middle East conflict, Commerzbank said.

Bonds:

Treasury yields jump after lighter moves earlier in the day.

Rising Treasury yields reflects "both inflation concerns and stronger domestic fundamentals," FXEM said.

The two-year Treasury yield could rise to 3.80%-4.00% if the Middle East conflict escalates into a prolonged one, SEB said.

Energy:

Oil prices were up in morning European trade after rising nearly 5% Thursday. Immediate supply constraints might be eased slightly by the U.S.'s decision to allow the sale of Russian oil to India for 30 days but this is not a game-changer, ING said.

Gas

Gas prices stabilized after jumping earlier this week on disruption caused by the conflict in the Middle East.

Metals:

Gold and silver prices rose early in European trade.

Gold was expected to post its first weekly decline in five weeks as traders reassess U.S interest-rate trajectory, Hargreaves Lansdown said.

However, geopolitics and the global macro backdrop remain supportive of gold, State Street Investment Management said.

Aluminum

Aluminum prices could overshoot in the short term , Julius Baer said. The Middle East conflict is threatening aluminum supplies, with some producers defaulting on their contracts.

Iron

Iron ore rose in Asian trade after China pledged support for its steel sector, ANZ said.

   TODAY'S TOP HEADLINES 

Aperol Maker Bets More Americans Will Warm to Italian-Style Drinking

The maker of Aperol is banking on selling a taste of Italy's terrace lifestyle to more Americans, part of its chief executive's plan to grab market share and sales growth in the U.S.

"Half of America has still never heard of [Aperol]," Davide Campari-Milano Chief Executive Simon Hunt said in an interview.

Maersk and Hapag-Lloyd Suspend Key Middle East Shipping Routes

Container shipping groups A.P. Moller-Maersk and Hapag-Lloyd suspended key shipping routes into and out of the Middle East as the fallout from the war in the region continues to disrupt trade flows.

Maersk said Friday that it suspended shipping routes connecting the Middle East with Europe and the Far East as well as its Gulf shuttle services.

Zealand Pharma Shares Plunge After Obesity Drug Candidate Disappoints in Trial

Zealand Pharma shares fell sharply after the Danish biotechnology company reported weaker-than-expected data from a midstage study of an obesity drug candidate it is jointly developing with Roche Holding.

Shares in Zealand plunged as much as 32% shortly after the opening bell on Friday, and have more than halved their value over the past year. Shares in Roche were down 2.7% in European morning trade.

Toyota-Affiliated Denso Makes Takeover Bid for Chip Maker Rohm

Toyota Motor-affiliated auto-parts supplier Denso has made a takeover proposal for Kyoto-based chip maker Rohm, as semiconductors become crucial for vehicle electrification and self-driving technologies.

Rohm on Friday said it received a proposal from Denso to acquire shares of the company, including a potential takeover.

Oil at 22-month high as Qatar minister warns prices could reach $150

Oil futures traded at their highest levels since the summer of 2024 on Friday as the war against Iran entered a seventh day with no sign of it ending anytime soon.

West Texas Intermediate-grade oil futures CL00 rose 4% to $84.13, while the Brent grade BRN00 gained 2% to $87.17.

Eurozone Growth Revised Lower for Fourth Quarter, Dragged by Irish Contraction

Economic growth in the eurozone was a little less than previously reported in the final quarter of last year, prompted by a larger-than-expected contraction in Ireland.

Gross domestic product increased 0.2% in the three months through December, the European Union's statistics agency Eurostat said Friday. That was lower than the 0.3% previously reported in February.

The Iran War Is Hitting Gulf Markets, Lifting Israel and Shifting Risk Across the Region

For years, investors treated the Persian Gulf as a bastion of calm in a deeply unstable region. Oil wealth and careful diplomacy kept turmoil at arm's length. Wars raged in Gaza, Israel, Syria and Lebanon-far from glitzy Dubai.

Now, markets are repricing risk across the region. The war with Iran-which has grounded flights, stranded tankers and put cities such as Dubai and Qatar's Doha under bombardment-is forcing investors to recalibrate their perception of the region's stability.

U.A.E. Explores Freezing Iranian Assets to Punish Tehran for Attacks

The United Arab Emirates is weighing freezing billions of dollars of Iranian assets held in the Gulf state, according to people familiar with the discussions, a move that could sever one of Tehran's most important economic lifelines.

If the U.A.E. goes ahead, it would significantly curb Tehran's access to foreign currency and global trade networks as its domestic economy, already buckling under inflation, is now engulfed in a military conflict.

Large-Scale Attacks Intensify Tensions in Middle East

Israel launched another wave of large-scale strikes on Tehran and hit Hezbollah command centers in Beirut, while Iran fired more missiles toward Israel and struck its northern neighbor, Azerbaijan, the 13th nation to be attacked since the start of the war.

Israel has struck several sports venues and other sites in Tehran, targeting civilian locations used by Iranian security forces in emergency situations, according to people familiar with the matter.

Trump Ousts Kristi Noem From DHS

For at least a week, President Trump told White House advisers that he was tired of the infighting and drama at the Department of Homeland Security and that he was planning to soon oust its leader.

But after Secretary Kristi Noem's congressional testimony Tuesday, Trump sped up his timeline, according to people familiar with his thinking. He was livid that she said under oath that he had signed off on spending $220 million in ads that promote herself, the people said.

Trump Suggests Cuba May Be Next in Line for U.S. Intervention

President Donald Trump suggested Thursday that Cuba may be next in line for a U.S. intervention after the war with Iran concludes.

Trump made the remarks from the White House, where he was hosting Inter Miami CF to celebrate the team's Major League Soccer championship last year.

Write to priscila.barrera@wsj.com

TODAY IN CANADA

Earnings:

Algonquin Power 4Q

AltaGas Ltd. 4Q

Canfor Pulp 4Q

Ensign Energy 4Q

Labrador Iron 4Q

Vizsla Silver 3Q

Economic Indicators (ET):

1000 Feb Ivey Purchasing Managers Index

Stocks to Watch:

Advantage Energy 4Q Natural Gas & Liquids Sales CAD 181.8M; 4Q Net Income CAD 9.62M; Reports 4Q Natural Gas & Liquids Sales of CAD 181.8 Million

(MORE TO FOLLOW) Dow Jones Newswires

March 06, 2026 06:17 ET (11:17 GMT)