Geopolitical tensions dominate market focus after U.S. and Israeli strikes on Iran killed key officials, including Supreme Leader Ayatollah Ali Khamenei. Trump signaled potential four-to-five-week involvement, while retaliatory attacks in Kuwait and Lebanon heightened energy security fears. Oil prices surged 8% on Strait of Hormuz closure risks, with gold climbing as safe-haven demand spiked. U.S. stock futures fell 2% amid volatility, underscoring fragility in global supply chains. Broadcom's AI semiconductor ambitions face scrutiny as investors weigh $73 billion backlog against margin pressures.

Analysts caution overreliance on five major clients, including Meta and Alphabet, complicating growth trajectories. Tech sector weakness persists, with the S&P 500 IT index down 5% year-to-date. Target's earnings report will test consumer resilience amid affordability challenges, with profit margins slashed 14% over five years. Meanwhile, Trump's Wednesday AI summit with Microsoft and Meta aims to address data center cost concerns, though regulatory hurdles loom. Federal Reserve policymakers monitor labor market mixed signals, with nonfarm payrolls expected at 58,000 jobs—down from January's 130k.

AI-driven layoffs, like Block's 40% workforce cut, fuel debates about productivity versus employment stability. Markets brace for dual pressures: escalating Middle East conflict and bifurcated economic growth signals.