Wall Street Balances Caution and Optimism Amid Geopolitical Tensions and Economic Uncertainty

U.S. stock index futures experienced a dip as investors navigated geopolitical tensions and awaited a crucial business activity survey. Despite short-term caution, key indexes are set for weekly gains. Meanwhile, strong economic data and speculations over Donald Trump's tax and tariff policies influence market sentiment.

On Friday, U.S. stock index futures dipped as investors exercised caution amidst rising geopolitical tensions and the anticipation of a business activity survey. Despite these concerns, Wall Street's main indexes are on track for weekly gains.

Thursday saw the S&P 500 and Dow Jones close at one-week highs, buoyed by Nvidia's positive forecast and strong economic data. Currently, market focus is on the S&P business activity survey, with services expected to expand and manufacturing to contract.

In early trading, Dow, S&P 500, and Nasdaq E-minis reported minor declines, while futures for small caps showed slight increases. Energy stocks have risen significantly amid escalating tensions between Ukraine and Russia, driving investor focus as speculation swirls around potential Federal Reserve policy shifts.

(With inputs from agencies.)