The article highlights escalating geopolitical tensions between Iran and Gulf states, with China expressing dissatisfaction over Iran's attacks on regional nations and the closure of the Strait of Hormuz.These developments are compounding inflation fears and influencing global financial markets.

Meanwhile, investment bank Citi has raised price targets for Dell and Hewlett Packard Enterprise (HPE) due to surging demand for AI infrastructure, with analysts citing strong server and data center investments as key drivers.Both stocks have seen significant gains this year, with HPE up 98% and Dell rising 245%.U.S.stock markets remained relatively flat on Friday, though Treasury yields edged higher amid Middle East tensions and concerns over inflation.

Bank of America advises investors to take a bullish stance on defensive sectors, tech, industrials, and dividends, while warning of potential risks to the macroeconomic 'boom' narrative.

Other market movers include Deckers Outdoor, Robert Half, and Amkor Technology, which saw notable premarket activity due to earnings reports and AI-related partnerships.

The 10-year Treasury yield approached 5% as inflationary pressures and geopolitical instability drove bond yields upward, reflecting investor uncertainty about economic stability.