Stock market update: Dow, S&P 500, and Nasdaq futures edge higher following stocks dropping to their lowest point since November

US Stock Futures Edge Higher Amid Market Volatility

Late Thursday, US stock futures saw modest gains as investors awaited a crucial inflation report set for Friday. Meanwhile, soaring oil prices continued to unsettle financial markets.

Futures for the Dow Jones Industrial Average (YM=F), S&P 500 (ES=F), and Nasdaq 100 (NQ=F) each rose by approximately 0.2%.

Market Turbulence Follows Sharp Declines

The uptick in futures came after a challenging trading day, with all three major US indices closing at their lowest levels of 2026 and hitting lows not seen since November. The Dow Jones Industrial Average (^DJI) plunged more than 700 points, dropping below 47,000 for the first time this year.

Oil Prices Surge Amid Geopolitical Tensions

Stocks faced downward pressure as oil prices spiked following statements from Iran’s new Supreme Leader, Mojtaba Khamenei, advocating for the closure of the Strait of Hormuz while US and Israeli military actions persist. This development, coupled with former President Trump’s forceful remarks, has heightened fears of escalating conflict in the region. Iran’s threats have raised the possibility of oil prices reaching $200 per barrel, further fueling market anxiety.

Crude Oil Hits New Highs

Oil markets responded quickly. West Texas Intermediate (CL=F), the US benchmark, surged nearly 10% to close at $95.73 per barrel. Brent crude (BZ=F) finished above $100 for the first time since August 2022, with prices continuing to climb during overnight trading.

Inflation Concerns Impact Fed Policy Outlook

The jump in oil prices, alongside renewed inflation fears, has altered expectations for Federal Reserve actions. Market participants have reduced their predictions for interest rate cuts by the central bank this year.

Upcoming Economic Reports

With this week’s earnings season concluded, focus shifts to January’s Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred gauge of inflation, which will be released Friday morning. Investors will also receive the first revision of fourth-quarter US GDP growth, after initial figures fell short of expectations. Additionally, a preliminary report on consumer confidence for March is expected.