Pre-Market Update: Record High One Day, Iran Fears the Next – What’s Moving Markets Friday

TLDR

• The S&P 500 hit a record high Thursday, driven by an AI rally and cooler-than-expected wholesale inflation data
• US stock futures were mixed Friday, with Dow futures sliding 68 points on geopolitical tensions
• The US threatened to extend its naval blockade of Iran indefinitely, pushing oil prices higher
• Brent crude climbed 1.7% to $88.51 a barrel; West Texas Intermediate rose 1.9% to $82.79
• The 10-Year Treasury yield ticked up 2 basis points to 4.67% as investors priced in higher rate risk

The S&P 500 closed at a record high on Thursday after a combination of strong AI-related earnings and softer wholesale inflation gave investors confidence. Futures were mostly flat heading into Friday’s session, though Dow futures dipped 0.1%.

The calm didn’t last long. Tensions between the US and Iran rattled sentiment early Friday after the US threatened to keep its naval blockade of Iran running indefinitely.

Oil Prices Jump on Iran Blockade Threat

The threat raised fears about shipping disruptions through the Strait of Hormuz, a key route for global oil supply. Brent crude futures rose 1.7% to $88.51 a barrel and West Texas Intermediate climbed 1.9% to $82.79 in early trading.

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