U.S. equity futures recovered on Friday, bouncing back from steep declines sparked by a surge in oil prices and weak results from top technology firms. The rally followed a challenging session where Wall Street endured its sharpest downturn in over a month, unsettling investors ahead of new tariffs and economic data releases.
At 4:33 p.m. (Bangkok Time), contracts linked to the Dow Jones Industrial Average rose 0.5%, while S&P 500 futures increased by 0.22%. Nasdaq-100 futures edged 0.1% higher as the broader market attempted to regain stability after Thursday’s significant sell-off, which hit large-cap technology stocks hardest.
On Thursday’s regular session, major benchmarks suffered sizable losses: the Dow closed with a drop exceeding 500 points, marking the fifth decline in six days. The S&P 500 and Nasdaq indexes each recorded their worst single-day declines since late June, down 1.21% and 2.15%, respectively.
For the week, markets remained positioned for a losing week, driven by a notable slide in the so-called “Magnificent Seven” companies, as hefty artificial intelligence investments at Alphabet and Tesla erased roughly $800 billion in combined market capitalization. The sell-off extended to markets across Asia, with key indices in South Korea and Japan registering declines.
Overnight, President Donald Trump’s administration implemented a new suite of Section 301 tariffs affecting nearly all U.S. imports, imposing duties of 10% to 12.5% on products from major trading partners. Energy imports received exemptions amid persistent concerns about elevated oil prices, which have threatened inflation progress and economic expansion. In response, Brent crude futures retreated 3.96% to $96.70 per barrel on Friday, after briefly surpassing the $100 mark, while futures linked to West Texas Intermediate crude dropped 3.6% to $88.87.
In the geopolitical arena, President Trump stated he would soon determine whether to authorize a large-scale strike against Iran following the recent escalation in the Red Sea. According to remarks given to Axios, Trump described the possible action as exceeding any previous operations in the ongoing conflict, adding that Iran has yet to face significant repercussions. U.S. military operations continued overnight, with strikes on Iranian positions entering their thirteenth night.
Investors are awaiting updates from S&P Global’s July flash purchasing managers indexes for the manufacturing and services sectors, along with figures on new home sales. Key quarterly results are due from American Express, NextEra Energy, and Verizon Communications.
