Wall St set for muted open as Middle East tensions curb risk appetite

Investors may be becoming desensitized to geopolitical shocks, but central banks cannot yet dismiss the latest developments, said Elwin de Groot, Rabobank's head of macro strategy.

With energy prices remaining elevated and Federal Reserve Chair Kevin Warsh offering little guidance on the central bank's next move, investors are scrutinizing economic data more closely.

Chicago Fed President Austan Goolsbee said late on Thursday the latest U.S. inflation data has been "a little better," and that he was hopeful inflation could continue to improve.

Comments from Atlanta Fed interim President Cheryl Venable and a preliminary University of Michigan consumer sentiment reading will be closely watched later in the day.