U.S. stock index futures are indicating a higher start to Friday’s session, suggesting equities may recover some ground after the sharp sell-off seen in the previous trading day.
Early strength on Wall Street may be fueled by bargain hunting, as some investors look to buy stocks at lower valuations following Thursday’s slump, which pushed the major benchmarks to their weakest closing levels in more than three months.
Buying interest may also be supported by a retreat in crude oil prices. Oil for April delivery dropped 1.6%, pulling back after surging nearly 15% across the prior two sessions.
The decline in crude comes even as political tensions remain elevated. U.S. President Donald Trump escalated rhetoric, referring to the Iranian leadership as “deranged scumbags” and saying he has the “great honor” to kill.
Stock futures moved further into positive territory following the release of closely watched inflation data showing consumer price growth slowed unexpectedly in January.
The Commerce Department reported that the annual rate of increase in 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 costs, edged up to 3.1% from 3.0%, contrary to forecasts that it would remain steady.
Another report from the Commerce Department also indicated that U.S. economic growth slowed more than previously estimated in the fourth quarter of 2025.
Markets slide sharply in previous session
After two sessions of little change, stocks fell steeply during Thursday’s trading, sending the major indices to their lowest closing levels in more than three months.
The main averages finished the day just above their intraday 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 sell-off coincided with another surge in oil prices, which continued their rebound following Tuesday’s sharp decline.
Brent crude futures for May delivery jumped 9.2%, climbing back above the $100-per-barrel mark.
Oil prices continued to rally after reports that three additional foreign vessels were struck in the Persian Gulf overnight, heightening concerns over shipping safety through the critical Strait of Hormuz.
U.S. Energy Secretary Chris Wright told CNBC that the Navy is “not ready” to escort oil tankers through the strait.
Iran’s new Supreme Leader Mojtaba Khamenei also said the Strait of Hormuz should remain closed as a “tool to pressure the enemy.”
Jobless claims and sector moves
On the economic front, the Labor Department reported that initial jobless claims in the U.S. unexpectedly declined slightly in the week ending March 7.
Initial claims fell to 213,000, down 1,000 from the prior week’s revised level of 214,000.
Economists had expected claims to edge up to 215,000, compared with the previously reported 213,000.
Among sector moves, airline stocks extended their recent slump, with the NYSE Arca Airline Index plunging 5.2%, reaching its lowest closing level in over three months.
Steel stocks also faced heavy pressure, with the NYSE Arca Steel Index dropping 3.7%.
Semiconductor shares declined as well, pushing the Philadelphia Semiconductor Index down 3.4%.
Oil service, biotechnology and financial stocks also posted notable losses, while oil producers were among the few groups to move higher, benefiting from the rally in crude prices.