Dow Jones, S&P 500, and Nasdaq 100 futures rise modestly after oil prices ease, though Middle East risks cap gains.
US index futures climbed in early European trading Friday, led by a 0.35% gain in Dow Jones futures to 52,070. S&P 500 and Nasdaq 100 futures rose 0.21% and 0.08%, respectively, as a pullback in oil prices eased inflation concerns and Fed policy fears.
The rebound follows Thursday’s sharp selloff, where the Dow dropped 0.97%, the S&P 500 fell 1.2%, and the Nasdaq plunged 2.2%—their worst day since late June. Weak big-tech earnings drove losses, with Tesla tumbling 15% on a Q2 miss and Alphabet sliding 7% after raising capex guidance.
Despite the relief, geopolitical risks persist. US strikes against Iran-backed Houthis mark the 13th consecutive night of retaliation, while crude supply threats keep inflation expectations elevated. Markets now price a 31.5% chance of a Fed hike this month and 78.1% odds of a September increase.