U.S. stock futures trended higher early Friday as traders weighed in on the latest headline on the Iran conflict and awaited the April non-farm payrolls report to get some clarity on the economic outlook amid an uncertain macroeconomic and geopolitical backdrop.
The major averages ended Thursday’s session off their record highs amid the flaring up of geopolitical tensions.
Pre-Market Snapshot — 7:30 AM ET
- S&P 500 Futures: 7,400.00 (+0.50%)
- Dow Futures: 49,857.00 (+0.34%)
- Nasdaq-100 Futures: 28,895.75 (+9.74%)
- Russell 2000 Futures: 2,863.00 (+0.50%)
- VIX: 17.06 (-0.12%)
- WTI Crude Futures: $94.92 (+0.12%)
- Gold Futures: $4,733.80 (+0.49%)
- EUR/USD: 1.1764 (+0.31%)
- Bitcoin (USD): $80,134.10 (-1.03%)
Iran-US Trade Barbs Over Ceasefire Violations
While Iran has accused the U.S. of violating the ceasefire in place on Thursday by launching air strikes on civilian areas, the U.S. Central Command (CENTCOM) responded by stating that its forces intercepted unprovoked Iranian attacks and that the move was merely in self-defence.
U.S. President Donald Trump, however, insisted that the ceasefire still holds. Meanwhile, Iran has launched missile attacks on the UAE, a key ally of the U.S. in the Middle East, according to a post by the UAE's Defence Ministry.
https://x.com/modgovae/status/2052578211322888214
Crude oil futures remained volatile in reaction to the escalation in the conflict, while stock futures largely ignored the Iran headlines.
All Eyes on NFP Report For Cues on Economy
The Bureau of Labor Statistics’ April non-farm payrolls report will likely set the tone for Friday’s market mood. Economists, on average, expect that the economy added 65,000 jobs in April, sharply lower than March payroll gains of 186,000.
ADP’s job report released Wednesday showed that private payrolls expanded by 109,000 in April, sharply higher than the 61,000 additions in the previous month. The consensus estimate was for private payroll gains of 118,000 for April.
The jobless rate, calculated based on BLS’ household survey, will likely remain unchanged at 4.3% and the average hourly earnings, an inflation measure, is expected to rise 3.8%, faster than the 3.5% increase in March.
Commodities Volatile, Dollar Weakens
With the U.S. and Iran making claims and counter claims, crude oil futures moved back and forth and were last seen trading modestly higher. Oil retreated in each of the past three sessions as traders bid down the commodity in hopes of the war ending.
Base and precious metals remained as the dollar weakened against its major counterparts.
Energy Rally Rattles Asian Markets
The major Asian markets fell as oil prices rose sharply in the Asian session, with the Australian and Hong Kong markets leading the slide. On the other hand, South Korea’s Kospi bucked the downtrend and ended at a new high, led by tech strength.
European stocks also started lower in the final trading session of the week but have recouped some of their early losses. The Euro STOXX 600 Index, which comprises key stocks across Europe, was last seen trading down over 0.50%.
What to Watch Friday
Earnings front: Embraer, Oshkosh, Wendy’s
Economic Catalysts: NFP report, UMich flash May consumer sentiment index, Commodity Futures Trading Commission’s weekly Commitment of Traders (COT) report
