S&P 500 futures steadied early Friday after a tough session driven by a spike in oil prices and weak megacap earnings. Brent crude held near $100 a barrel, while Tesla and Alphabet led Thursday's declines. The major averages remained on track for weekly losses.
S&P 500 futures were little changed early Friday, steadying after a session in which a sharp spike in oil prices and weak earnings from two megacap companies pressured the market. Nasdaq-100 futures slipped 0.26% while Dow futures traded 20 points lower, with S&P 500 futures flat.
Thursday's selloff set the tone
The steadier tone followed heavy losses. The S&P 500 and Nasdaq posted their worst one-day performances since June 23, dropping 1.2% and 2.2% respectively. The Dow fell more than 500 points, around 1%, its fifth negative day in six.
By the close, the S&P 500 stood around 7,408.30, down 1.21% for the session.
Quarterly results from Tesla and Alphabet also weighed on the market. Tesla tumbled nearly 15%, its worst day since March 10, 2025, after an earnings miss for the second quarter. Alphabet fell 7% after raising its full-year guidance for capital expenditures.
Oil holds near $100
The trigger was crude. Brent crude topped $100 a barrel for the first time since May 26, gaining about 7% Thursday to close at $100.69.
West Texas Intermediate advanced roughly 6% after two Saudi oil tankers were reportedly struck in the Red Sea. Prices edged higher again in Friday Asia trading, with Brent up 0.26% at $100.26.
Higher crude tends to lift inflation expectations, and that channel showed up in bonds.
Yields and the rate outlook
Treasury yields steadied after Thursday's climb. The 10-year yield held at 4.705%, with the 30-year little changed at 5.175%. Yields had jumped as Brent's move past $100 raised inflation fears, while mild weekly jobless claims data dimmed hopes of a rate cut.
Thursday's moves left the major averages on track for weekly declines, with the Dow and S&P 500 down 0.8% and 0.7% and the Nasdaq off 1.5%.
Sources: CNBC, Crypto Daily
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