U.S. stocks steadied early Friday after surging oil prices and declines in Tesla and Alphabet dragged the S&P 500 and Nasdaq to their worst one-day drop since June 23. Brent crude's jump past $100 a barrel left Wall Street heading for weekly losses.
Stocks tried to find their footing Friday after Thursday's rout. S&P 500 futures were flat while Nasdaq-100 futures slipped 0.26% and Dow Jones Industrial Average futures traded 20 points lower. The steadying followed a session in which the S&P 500 and Nasdaq dropped 1.2% and 2.2%, their worst one-day performances since June 23.
Oil spike drives the retreat
The Dow fell more than 500 points, around 1%, for its fifth negative day in six. Behind the drop, Brent crude futures topped $100 per barrel for the first time since late May, soaring about 7% on Thursday after two Saudi oil tankers were reportedly struck in the Red Sea. West Texas Intermediate advanced roughly 6% on the day.
Positioning left the market exposed to the shock. According to LPL Financial's Adam Turnquist: "even a modest deterioration in supply expectations can produce an outsized price response."
Yields climbed alongside the oil move. The 10-year Treasury yield held flat at 4.705% on Friday, after jumping the prior session as Brent's rise past $100 raised inflation fears and mild weekly claims data dimmed hopes of a rate cut.
Tesla and Alphabet earnings add pressure
Corporate results deepened the slide. Tesla tumbled nearly 15%, its worst day since March 10, 2025, after posting a second-quarter earnings miss. Alphabet fell 7%, its biggest daily decline since May 7, 2025, after hiking its full-year guidance for capital expenditures.
The selling spread across Asia. Japan's Nikkei 225 fell 2.79% while South Korea's Kospi dropped over 5%, and Australia's S&P/ASX 200 slipped 0.95%.
Thursday's moves put the major averages on pace for weekly declines. The Dow and S&P 500 have shed 0.8% and 0.7% for the week. The Nasdaq has lost 1.5%.
Source: CNBC
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