U.S. stock futures rose early Friday as investors braced for a significant inflation report due later in the day, though rising oil prices continued to create uncertainty in the markets. Futures contracts linked to the Dow Jones Industrial Average and the S&P 500 both gained 0.3%, while Nasdaq 100 futures increased by about 0.1%.
This positive movement in futures comes on the heels of a challenging regular trading session, where all three major U.S. indices finished at their lowest closing points of 2026, marking their worst levels since November. The Dow Jones Industrial Average experienced a notable decline, dropping over 700 points and closing below the 47,000 mark for the first time this year.
Oil prices surged dramatically as Iran’s new Supreme Leader, Mojtaba Khamenei, indicated that the Strait of Hormuz should remain closed in response to ongoing tensions with the U.S. and Israel. This development, coupled with aggressive rhetoric from former President Trump, has heightened fears that the conflict could escalate and further destabilize the region. An oil price surge has led to concerns that prices could reach as high as $200 per barrel.
In reaction to these geopolitical tensions, U.S. benchmark West Texas Intermediate crude rose nearly 10%, closing at $95.73 per barrel, while Brent crude surpassed the $100 threshold for the first time since August 2022. Oil prices continued to climb through the overnight trading session on Thursday.
The increase in oil prices, alongside renewed inflation concerns, has caused a shift in expectations regarding Federal Reserve policy. Analysts note that traders are now less inclined to expect cuts to interest rates from the central bank this year.
As traders turn their focus towards the macroeconomic environment, all eyes are on the release of January’s Personal Consumption Expenditures (PCE) price index—a key inflation gauge favored by the Fed—scheduled for release Friday morning. Additionally, investors anticipate the first revision of the Q4 U.S. GDP growth, which initially fell short of expectations, along with the first consumer confidence data for March.
In related news, ByteDance has reportedly signed a $2.5 billion deal for Nvidia chips outside of China, while Adobe’s stock has taken a hit following the announcement of its CEO’s departure after 18 years at the company’s helm.
