Futures Pointing To Initial Rebound On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a higher open on Friday, with stocks likely to regain ground following the weakness seen in the previous session.

Traders may look to pick up stocks at reduced levels following yesterday's slump, which came amid an extended surge in crude oil prices and a rebound in bond yields.

Buying interest may be somewhat subdued, however, as the price of crude oil is seeing some further upside on the day.

U.S. crude oil futures have pulled back well off their early morning highs but remain up by 0.2 percent amid lingering concerns about the standoff in the Middle East.

Traders may also be reluctant to make more significant moves ahead of key events next week, including the release of Nvidia's (NVDA) quarterly results and the Jackson Hole economic symposium.

"Next week's results from Nvidia could put some of the focus back on corporate earnings but, as we head towards the autumn, a chill has started to descend for markets," said Dan Coatsworth, head of markets at AJ Bell.

He added, "Investors will be looking for a comfort blanket when Federal Reserve chair Kevin Warsh addresses the Jackson Hole meeting at the end of this month."

After coming under pressure early in the session, stocks saw further downside over the course of the trading day on Thursday. The major averages all moved sharply lower as the day progressed, more than offsetting the modest gains posted during Wednesday's session.

The major averages ended the day not far off their lows of the session. The Dow tumbled 703.84 points or 1.3 percent to 52,759.21, the Nasdaq slumped 263.92 points or 1 percent to 26,067.17 and the S&P 500 slid 66.82 points or 0.9 percent to 7,641.16.

The weakness on Wall Street came as the price of crude oil extended a recent surge amid concerns about the conflict in the Middle East following President Donald Trump's latest threats.

In a post on Truth Social, Trump announced he is launching "economic warfare" against Iran, calling it the "most crushing economic operation ever taken against any country."

Trump also warned of "tremendous economic consequences" for any country that "allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran."

Responding to Trump's threats, Iran's Foreign Minister Abbas Araghchi described the so-called "Economic D-Day" as a "diversion from America's own crisis: unprecedented debt & surging interest costs."

"Doubling down on failed policies will only bring further defeat—and enmity of Iranians," Araghchi said in a post on X. "US economic terrorism threatens global economy and sovereignty worldwide."

U.S. crude oil futures shot up by nearly 3 percent to their highest levels in nearly a month amid concerns the latest rhetoric suggests there is no end in sight to the U.S.-Iran war.

The sharp increase in the price of crude oil also contributed to a substantial rebound by treasury yields, which had tumbled on Wednesday after the Treasury Department announced upscaled buyback operations for longer-term debt.

A steep drop by shares of Walmart (WMT) also weighed on Wall Street, with the retail giant plummeting by more than 9 percent.

The nosedive by Walmart came after the company reported weaker than expected comparable sales growth in the second quarter and provided disappointing guidance.

Retail stocks saw substantial weakness amid the plunge by shares of Walmart, with the Dow Jones U.S. Retail Index tumbling by 2.5 percent.

Significant weakness also emerged among airline stocks, as reflected by the 2.4 percent slump by the NYSE Arca Airline Index.

Housing, pharmaceutical and biotechnology stocks also saw considerable weakness, while gold stocks showed a strong move to the upside amid an increase by the price of the precious metal.

Commodity, Currency Markets

Crude oil futures are rising $0.27 to $87.10 a barrel after surging $2.44 to $86.83 a barrel on Thursday. Meanwhile, after climbing $26.10 to $4,4571.40 an ounce in the previous session, gold futures are jumping $72.10 to $4,643.50 an ounce.

On the currency front, the U.S. dollar is trading at 158.78 yen versus the 159.05 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1687 compared to yesterday's $1.1678.

Asia

Asian stocks ended mixed on Friday as oil prices remained elevated and the U.S. Treasury Department's announcement to manage pressure in the bond market failed to quell lingering concerns about inflation and rising government debt.

The U.S. dollar was subdued and headed for a weekly loss as U.S. bond yields steadied after rebounding from lower levels on Thursday amid fears the U.S. Treasury's plan to curb borrowing costs is just a short-term fix.

Gold rose about 1 percent to $4,563 an ounce and was on track for a third consecutive weekly gain, supported by a weakening dollar and expectations of controlled longer-term Treasury yields.

Brent crude futures traded above $93 a barrel and were set for a second consecutive weekly gain amid the continuing standoff between Washington and Teran over control of the Strait of Hormuz.

U.S. Treasury Secretary Scott Bessent announced on Thursday that Washington will impose "the toughest sanctions in history" on Iran, with full details of the sanctions expected next week.

China's Shanghai Composite Index fluctuated before finishing marginally higher at 3,905.20, led by gains in AI and semiconductor shares.

Hong Kong's Hang Seng Index jumped 1.2 percent to 26,009.46, extending gains from the previous session after the release of softer local inflation data.

Japanese markets closed lower after data showed Japanese headline inflation rose for a second month in July due to higher energy costs, adding pressure on the Bank of Japan to act on rates in September.

The Nikkei 225 Index dropped 0.3 percent to 66,016.36 due to Middle East concerns and investor anxiety over rising long-term interest rates in Japan and the U.S. The broader Topix Index settled 0.2 percent higher at 4,067.29.

Among the prominent decliners, heavyweight Fast Retailing tumbled 3.6 percent and technology investor SoftBank fell 2.5 percent.

Seoul stocks rose sharply after reports emerged that Samsung Electronics will unveil a shareholder return scheme worth up to 110 trillion won later in the day.

While Samsung shares surged 3.9 percent, rival SK Hynix, which announced a plan to repurchase some 40 trillion won worth of common shares on Wednesday, added 2.3 percent. The Kospi Index ended up 0.9 percent at 6,912.95.

Australian markets ended slightly lower, dragged down by technology and real estate stocks. The benchmark S&P/ASX 200 Index fell 0.3 percent to 9,058.90, with gains in energy stocks helping limit the potential downside. The broader All Ordinaries Index closed 0.3 percent lower at 9,269.70.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index rose 0.4 percent to 13,972.66, reversing an early slide on concerns about volatility in the U.S. bond market.

Europe

European stocks have edged up slightly on Friday but are on course for a weekly loss due to concerns over elevated oil prices and bond market volatility.

The British pound fell slightly against the euro after official data showed U.K. retail sales decreased 0.5 percent month-on-month in July, reversing a revised 0.7 percent rise in June. Sales were forecast to drop 0.4 percent.

On a yearly basis, retail sales increased at a slower pace of 1.6 percent after rising 3.8 percent in June.

While the German DAX Index is up by 0.3 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both up by 0.2 percent.

Hunting Plc shares have moved sharply lower in London after the British energy services firm lowered its annual core profit forecast.

Banca Generali has also fallen after Monte dei Paschi di Siena launched parallel all-stock offers for the Italian wealth manager and Banco BPM.

German ticketing firm CTS Eventim has also moved to the downside after posting mixed second-quarter results.

Meanwhile, precious miner Fresnillo has jumped as gold prices surged past $4,550 an ounce on a softer dollar and expectations of controlled longer-term Treasury yields.

Mining giants Antofagasta, Glencore and Antofagasta has also moved notably higher as copper prices gained on a weaker dollar.

U.S. Economic News

No major U.S. economic data is scheduled to be released today.