U.S. equity futures advanced early Friday amid renewed volatility in the Middle East and ahead of key labor market data. Market participants weighed rising geopolitical tensions following recent military action involving U.S. and Iranian forces, while anticipating April’s employment report.
At 4:14 p.m. (Bangkok Time), contracts tracking major indices, including the S&P 500 and Nasdaq 100, showed modest gains of 0.44% and 0.66% respectively in premarket activity, while Dow futures edged higher by approximately 25%.
The upward move in futures followed Thursday’s session where stocks pulled back from record levels; the S&P 500 retreated 0.38%, the Nasdaq Composite eased by 0.13%, and the Dow Jones Industrial Average declined by 0.63%.
Oil markets responded strongly to events in the Strait of Hormuz, where a military encounter took place between U.S. and Iranian forces. West Texas Intermediate crude climbed 2% earlier on Friday before pulling back to 0.23% decrease, while Brent stabilized at around $100 per barrel.
This volatile oil movement happened as each nation blamed the other for initiating the exchange. U.S. Central Command stated its personnel intercepted Iranian assaults and responded accordingly as three U.S. Navy destroyers passed through the strategic waterway.
President Donald Trump reported via Truth Social that the U.S. vessels remained undamaged and called the American strikes “limited.” He also noted that the existing ceasefire with Iran was still in effect.
The heightened uncertainty comes as Iranian officials assert that the U.S. would not be permitted to resume passage through the Strait of Hormuz under what they described as unrealistic proposals. Further, Iranian state media relayed that Tehran expects compensation for damages incurred during recent hostilities, according to a Wall Street Journal report.
Attention now turns to Friday’s U.S. employment release, with economists forecasting nonfarm payroll growth of 65,000 for April and an unchanged unemployment rate of 4.3%, based on surveys conducted by Bloomberg. In addition, corporate earnings are scheduled from prominent firms such as Toyota Motor, Sony, and Brookfield Asset Management.
