US Stock Futures Dip as Middle East Tensions Offset Midweek Rally

Futures Retreat After Equities Extend Weekly Gains

Futures tied to the S&P 500, the Nasdaq 100, and the Dow Jones Industrial Average each slipped around 0.1% in overnight trading. The move followed a solid session on Wall Street, where stocks extended weekly gains after President Donald Trump agreed to temporarily halt military action against Iran.

On Thursday, the S&P 500 advanced 0.6%, the Nasdaq Composite gained 0.8%, and the Dow Jones Industrial Average climbed nearly 276 points. The rise pushed the blue-chip Dow into positive territory for 2026, reflecting improved risk appetite earlier in the week before the latest signs of geopolitical strain emerged.

Investors are now closely watching the tentative start of diplomatic mediation efforts. Israeli Prime Minister Benjamin Netanyahu agreed to begin negotiations with Lebanon after Iranian officials accused Israel of breaching the ceasefire and responded by shutting the Strait of Hormuz. Trump has reissued threats against Iran after Tehran said it will toll tankers attempting to transit the key waterway.

Peace talks are scheduled for this weekend following calls from senior White House officials to Netanyahu on Wednesday, requesting that Israel scale back its strikes on Lebanon. In an official statement, Israel responded that “There is no ceasefire in Lebanon,” underscoring the continued fragility of the regional security environment.

Inflation Data and Oil Market Volatility in Focus

Market participants are also turning attention to upcoming US economic data. The March consumer price index is due, with economists expecting inflation to rise 0.9% month over month and 3.3% from a year earlier. The data could influence sentiment after this week’s rally and amid uncertainty linked to geopolitical developments.

Oil prices extended gains for a second session after Saudi Arabia reported reduced production capacity following attacks on its energy infrastructure. Brent crude climbed to near $97 per barrel after adding 1.2% on Thursday in choppy trading, though it remains more than 10% lower for the week after the US and Iran announced a ceasefire on Tuesday. West Texas Intermediate traded around $99 a barrel.

Saudi Arabia’s press agency said the kingdom’s oil production capacity has been cut by about 600,000 barrels per day due to infrastructure attacks, representing roughly 10% of its normal crude exports. Additional strikes on a pumping station serving the East-West pipeline reduced daily throughput by 700,000 barrels this week. Kuwait also reported intercepting drone attacks targeting some vital facilities, adding to concerns over the security of regional energy infrastructure.

FAQ

How did major US stock indices perform in the latest session?
The S&P 500 rose 0.6%, the Nasdaq Composite gained 0.8%, and the Dow Jones Industrial Average increased by nearly 276 points, moving the Dow into positive territory for 2026.

What is the current status of US stock futures?
Futures linked to the S&P 500, the Nasdaq 100, and the Dow Jones Industrial Average each slipped around 0.1% in Thursday night trading.

What are economists expecting for the March consumer price index?
Economists expect the March CPI to rise 0.9% month over month and 3.3% compared with a year earlier.

How have recent attacks affected oil production and prices?
Saudi Arabia reported a reduction of about 600,000 barrels per day in production capacity, around 10% of its normal crude exports, and a 700,000-barrel-per-day cut in East-West pipeline throughput, while Brent traded near $97 and West Texas Intermediate around $99 per barrel.