US stock futures experienced a downturn on Friday amid surging oil prices fueled by concerns over supply disruptions from the escalating conflict in the Middle East. Investors are also anxiously awaiting the release of the crucial monthly jobs report.
Futures for the Dow Jones Industrial Average fell 0.3%, continuing a trend following a turbulent and negative trading session on Thursday. Similarly, contracts on the S&P 500 and the tech-heavy Nasdaq 100 also dipped by 0.3% and 0.4%, respectively.
The spike in oil prices comes after Qatar’s energy minister warned that ongoing hostilities involving Iran could lead Gulf exporters to halt production within days, potentially driving prices to an alarming $150 per barrel. West Texas Intermediate futures surged nearly 4% to surpass $84, while international benchmark Brent crude saw a 2% increase, reaching over $87. Both benchmarks are on track for their largest weekly increase in four years, as tanker traffic in the strategically vital Strait of Hormuz remains significantly hampered.
These rising prices complicate efforts by the current administration to curb the oil rally. The U.S. recently granted India a temporary waiver to purchase Russian crude, highlighting the complex geopolitical landscape. There is a growing apprehension regarding inflation, as U.S. gas prices have climbed to their highest levels since 2024.
Attention will shift to Friday’s jobs report, expected to reveal that the U.S. economy added approximately 55,000 jobs in February, with analysts predicting the unemployment rate will remain steady at 4.3%. A significant shortfall in job additions could bolster arguments for interest rate cuts by the Federal Reserve.
The S&P 500 is poised to close the week lower, while the Dow has dropped more than 2%, entering negative territory for 2026. However, the Nasdaq Composite may manage a slight weekly gain against the broader trend.
In premarket trading, several notable stocks are drawing attention:
– Gap Inc. saw its stock fall 6% following a disappointing earnings report for the fourth quarter, missing Wall Street expectations.
– NCR Atleos Corporation’s stock plummeted 8% as the company requested bondholders to approve amendments that would prevent its upcoming merger with The Brink’s Company from triggering a “change of control” clause.
– Guidewire Software’s stock rose 4% after it increased its full-year revenue guidance based on positive second-quarter results.
In an exclusive interview, Qatar’s energy minister, Saad al-Kaabi, expressed that the ongoing conflict could have dire implications for the global economy, predicting that all Gulf energy exporters might cease production in the coming days.
Separately, Marvell Technology reported first-quarter revenues of around $2.4 billion, exceeding analysts’ projections of $2.27 billion. The company attributes its strong performance to increasing demand for custom chips utilized in AI and data centers, with its stock gaining 11% in premarket trading.
Surprisingly, China’s markets have fared better than those in other Asian countries amid the tumult caused by the war in Iran. Onshore stocks have only fallen about 1% this week, contrasting sharply with more than a 6% drop across Asian markets. The yuan has experienced the smallest decline among major Asian currencies, while Chinese bonds have outperformed their peers. Analysts suggest that China’s policy stability and economic support have rendered its markets relatively resilient during this period of global uncertainty.
As the February jobs report is set to be released, the focus remains on the resilience of the labor market amid a backdrop of recent turmoil.
Lastly, news reports indicate that Softbank is seeking to secure a loan of $40 billion for its investment in OpenAI, underscoring ongoing developments in the technology sector.
