US equity-index futures declined sharply Friday as China initiated a retaliatory probe into US trade practices, escalating market concerns about the ongoing Iran conflict. China's probe signals a potential escalation in the trade war, directly impacting investor sentiment toward US exports and technology sectors. The Iran war's escalation further complicates global markets, threatening oil supplies and regional stability. These developments triggered a broad selloff in risk assets, with major indices poised for weekly losses as traders anticipate prolonged uncertainty. Market analysts warn this dual pressure could delay economic recovery and increase corporate borrowing costs, particularly affecting multinational firms with significant exposure to both regions. The Federal Reserve's policy outlook remains under scrutiny as inflation risks and geopolitical instability create conflicting signals for monetary tightening.