BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening mixed on Friday after chipmaker Intel reported blowout second-quarter earnings and guidance for the third quarter, driven by growing AI demand for server chips.
U.S. stock futures steadied after a sharp sell-off on Wall Street overnight on concerns over high artificial intelligence spending and continued military action in the Middle East.
Brent crude futures held above $100 a barrel and were on track for a weekly gain of almost 14 percent amid heightened fears of global supply disruptions.
After the United States launched its 13th consecutive night of strikes on Iranian targets, Tehran retaliated with missile attacks targeting neighboring Arab countries hosting U.S. military bases.
Iran said it targeted U.S. missile systems, weapons depots and fuel storage facilities in Jordan, along with American military positions in Kuwait.
Adding to investor anxiety, the Trump administration said that it would impose higher tariffs on goods from 60 trading partners, citing forced labor concerns.
The tariffs, ranging from 10 percent to 12.5 percent, would impact major economies like the European Union, U.K., China, India, Japan and Canada. The measures replace a temporary 10 percent global tariff that expires today.
Asian markets were broadly lower as surging oil prices fueled concerns over energy-driven inflation.
The Federal Reserve is widely expected to leave rates unchanged when it meets next week. Fed funds futures suggest a roughly 82 percent likelihood that the central bank lifts borrowing costs at its September policy meeting.
The U.S. dollar remained weak despite rising bond yields. Gold extended losses to trade at $4,028 an ounce after falling nearly 2 percent in the previous session.
Overnight, U.S. stocks fell sharply as AI-related concerns and surging oil prices amid escalating U.S-Iran tensions sapped investors' appetite for risk.
Both Tesla and Alphabet revealed aggressive AI capex plans, reviving concerns about heavy AI spending and lofty valuations.
Brent crude oil prices surged above $100 per barrel for the first time since May while the 10-year Treasury yield jumped to the highest level since January 2025 as clashes escalated over key shipping routes following Houthi attacks on Saudi tankers.
U.S. President Doanld Trump threatened both Iran and Yemen's Houthi rebels with 'major military punishment' after Houthis launched missile and drone strikes on oil tankers in the Red Sea to enforce a blockade on Saudi Arabia.
The tech-heavy Nasdaq Composite slumped 2.2 percent, the S&P 500 lost 1.2 percent and the Dow gave up 1 percent.
European stocks ended lower on Thursday as the European Central Bank left interest rates unchanged, but opened the door to another increase in September, saying it anticipates inflation will remain 'well above target' until the first half of 2027.
The pan-European STOXX 600 fell 1.2 percent. The German DAX and France's CAC 40 tumbled around 1.6 percent each while the U.K.'s FTSE 100 shed 0.7 percent.
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