U.S. stock index futures suggest markets could open higher on Friday, indicating equities may attempt to recover some of the losses recorded during the previous trading session.
Part of the early strength may stem from bargain hunting, as investors look to buy stocks that were heavily sold off on Thursday, when the major indices closed at their lowest levels in more than three months.
A pullback in crude oil prices could also encourage early buying. Oil for April delivery fell 1.6%, retreating after climbing nearly 15% over the previous two sessions.
The drop in crude comes even as geopolitical tensions remain high. U.S. President Donald Trump intensified his rhetoric toward Iran, calling the regime “deranged scumbags” and saying he has the “great honor” to kill.
Stock futures gained further momentum after the release of a closely watched inflation report showing that consumer price growth slowed more than expected in January.
According to the Commerce Department, the annual growth rate of the PCE price index eased to 2.8% in January, down from 2.9% in December. Economists had expected the pace to remain unchanged.
Meanwhile, the core PCE price index, which excludes food and energy, rose slightly to 3.1% from 3.0%, even though economists had forecast no change.
Another report from the Commerce Department indicated that U.S. economic growth in the fourth quarter of 2025 was weaker than previously estimated.
Markets tumble in Thursday’s session
Following two relatively quiet sessions, stocks declined sharply on Thursday, pushing the major benchmarks to their lowest closing levels in over three months.
The indices ended the day slightly above their session lows. The Dow Jones Industrial Average dropped 739.42 points, or 1.6%, to 46,677.85, the Nasdaq Composite fell 404.16 points, or 1.8%, to 22,311.98, and the S&P 500 declined 103.18 points, or 1.5%, to 6,672.62.
The downturn on Wall Street coincided with another surge in oil prices, which continued their rebound after Tuesday’s steep drop.
Brent crude futures for May delivery jumped 9.2%, pushing prices back above the $100 per barrel threshold.
Oil extended its rally after reports that three additional foreign vessels were struck overnight in the Persian Gulf, heightening concerns about shipping safety through the crucial Strait of Hormuz.
U.S. Energy Secretary Chris Wright told CNBC the Navy is “not ready” to escort oil tankers through the strait.
Iran’s newly appointed Supreme Leader Mojtaba Khamenei also stated that the Strait of Hormuz should remain closed as a “tool to pressure the enemy.”
Jobless claims and sector moves
In economic data, the Labor Department reported that initial jobless claims in the United States unexpectedly declined slightly in the week ending March 7.
New claims fell to 213,000, down 1,000 from the prior week’s revised figure of 214,000.
Economists had expected claims to rise modestly to 215,000, compared with the 213,000 originally reported for the previous week.
Among sectors, airline stocks extended their recent decline, with the NYSE Arca Airline Index plunging 5.2%, reaching its lowest closing level in more than three months.
Steel companies also saw significant losses, as the NYSE Arca Steel Index dropped 3.7%.
Semiconductor shares weakened as well, pulling the Philadelphia Semiconductor Index down 3.4%.
Oil service, biotechnology and financial stocks also experienced notable selling pressure, while oil producers were among the few sectors to post gains, benefiting from the continued strength in crude prices.
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