S&P futures increased early Friday as traders monitored the latest developments between the U.S. and Iran. They also anticipated the release of April’s jobs report. S&P 500 futures and Nasdaq 100 futures experienced increases of approximately 0.17% and 0.25%, respectively. Futures associated with the Dow Jones Industrial Average increased by 62 points, which is approximately 0.12%. Oil prices rose in extended trading, with West Texas Intermediate crude futures increasing by 2%, following an exchange of fire between the U.S. and Iran in the Strait of Hormuz. Each side claimed the other struck first. U.S. Central Command stated that military forces “intercepted unprovoked Iranian attacks and responded with self-defense strikes” as a trio of U.S. Navy destroyers transited the waterway.
In a post on Truth Social Thursday night, President Donald Trump stated, “no damage done to the three Destroyers, but great damage done to the Iranian attackers.” He also reportedly stated that the ceasefire remains in effect, describing the strikes against Iranian targets as “just a love tap.” On Thursday, the S&P 500 and Nasdaq Composite pulled back from their record highs as investors remained vigilant regarding the latest developments in the Middle East. The broad market index declined by 0.38%, whereas the tech-heavy Nasdaq experienced a decrease of 0.13%. The Dow experienced a decline of 313.62 points, translating to a decrease of 0.63%. The actions followed a statement from a senior Iranian official asserting that the nation would not permit the U.S. to reopen the Strait of Hormuz passageway with a “unrealistic plan,” as reported on Thursday, referencing Iran’s state-owned Press TV. The official stated that Iran would not permit the U.S. to exit the conflict without compensating for the damage it has caused.
On Friday morning, investors will anticipate the release of April’s unemployment rate and payrolls data. Dow Jones estimates indicate that economists project job gains of merely 55,000 for the previous month, while they expect the U.S. jobless rate to remain unchanged at 4.3%. Stocks have experienced an upward surge in recent sessions, driven by a robust earnings season, with all three major averages anticipated to conclude the week on a positive note. Robust tech earnings have positioned the Nasdaq to rise 2.8% for the week. The S&P 500 is poised for an increase of 1.5%, whereas the Dow Jones has fallen behind, recording a week-to-date gain of merely 0.2%. Looking ahead, Yung-Yu Ma anticipates that this robust earnings momentum will persist.
“It is important to note that the gains are very broad based,” he stated during an appearance on Thursday afternoon. “If you look out to Q2, Q3 and Q4, the market and analysts are still expecting about 20% or higher earnings growth on a year-over-year basis in those subsequent quarters.” The anticipated momentum shows no signs of diminishing. “There is dispersion, for sure, but the momentum is going to be quite strong here.” Toyota Motor, Wendy’s, and Brookfield Asset Management are among the companies set to report their earnings before the opening bell on Friday.