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U.S. stock index futures moved lower on Friday, extending recent losses as escalating tensions in the Middle East and sharply higher oil prices dampened investor sentiment ahead of a key U.S. jobs report.
By 05:35 ET (10:35 GMT), Dow Jones Futures declined 105 points, or 0.2%, while S&P 500 Futures fell 22 points, or 0.3%, and Nasdaq 100 Futures dropped 100 points, or 0.4%.
Wall Street’s main indexes ended Thursday’s session in negative territory, pressured by a surge in oil prices amid fears of supply disruptions through the Strait of Hormuz, a critical shipping route south of Iran.
The Dow Jones Industrial Average plunged nearly 785 points, or 1.6%, putting the index on track for its second consecutive weekly loss and its worst performance since October. The S&P 500 slipped 0.6%, while the Nasdaq Composite declined nearly 0.3%.
Oil surge hits market sentiment
Investor confidence has been rattled this week as crude prices spiked sharply amid intensifying conflict in the Middle East.
U.S. crude futures have surged nearly 21% this week, after the United States and Israel launched coordinated strikes against Iran, raising fears that oil shipments from the region could be disrupted.
The conflict has spread across parts of the Middle East and the Persian Gulf, amplifying concerns about potential supply disruptions.
Higher energy prices have already begun affecting consumers. According to data from travel group AAA, the average U.S. gasoline price has risen 27 cents to $3.25 per gallon since the start of the conflict.
Elevated oil prices tend to pressure corporate margins and reduce consumer spending, while also complicating the Federal Reserve’s efforts to bring inflation under control.
Conflict shows few signs of easing
The geopolitical situation continues to escalate.
U.S. Defense Secretary Pete Hegseth said late Thursday that “the amount of firepower over Iran and Tehran is about to surge dramatically.” Meanwhile, Israel announced earlier Friday that it had begun a broad wave of attacks targeting infrastructure in Tehran.
U.S. President Donald Trump, speaking in a telephone interview with Reuters, said Washington must have a role in determining Iran’s next leadership after airstrikes killed Supreme Leader Ayatollah Ali Khamenei last week, suggesting the United States may remain involved in the region for an extended period.
Jobs report in focus
Investors are now turning their attention to the U.S. nonfarm payrolls report for February, due later Friday.
Economists expect the U.S. economy to have added around 58,000 jobs, slowing from stronger job growth in January, while the unemployment rate is forecast to hold near 4.3%.
The payrolls data could play a crucial role in shaping expectations for Federal Reserve interest rate policy. A strong labor market may give policymakers room to keep rates higher for longer.
While markets still expect the Fed to begin easing policy later this year, resilient economic data and rising geopolitical risks have reduced expectations for aggressive rate cuts.
Corporate updates in focus
In corporate news, Marvell Technology lifted its full-year revenue outlook, driven by strong demand from artificial intelligence data centers as companies such as Amazon and Microsoft continue investing heavily in AI infrastructure.
Marvell designs key networking components that connect large-scale computing systems, making it a major beneficiary of the global AI buildout.
Elsewhere, Gap issued disappointing fiscal 2026 guidance, citing concerns about tariff-related pressures.
Meanwhile, Costco reported higher second-quarter revenue and profit, with membership fees reaching $1.36 billion, marking a 13.6% year-over-year increase.
With oil prices soaring and geopolitical tensions rising, markets remain highly sensitive to developments in the Middle East as investors balance economic data against growing global risks.
