U.S. stock futures were pointing to a largely unchanged open on Friday, suggesting a subdued start to trading as investors pause after a late-session rebound in the previous day’s market.
Market participants appear hesitant to take strong positions amid ongoing uncertainty surrounding the Middle East ceasefire.
Speaking ahead of planned U.S.-Iran talks in Pakistan this weekend, President Donald Trump criticized Iran, saying it is doing a “very poor job” of allowing oil to pass through the Strait of Hormuz, adding, “That is not the agreement we have!”
He also reacted to reports that Iran may be imposing fees on tankers transiting the key waterway, warning, “They better not be and, if they are, they better stop now!”
“With talks between Tehran and Washington set to get underway on Saturday, investors could be in for a fretful weekend as they wait for indications of whether a path to lasting peace is possible,” said AJ Bell’s head of markets Dan Coatsworth. “Ahead of this, investors may well be tempted to hedge their bets.”
Futures showed little reaction following a Labor Department report indicating that U.S. consumer prices rose in line with expectations in March.
After a strong rally on Wednesday, stocks initially pulled back in early trading on Thursday before staging a notable recovery later in the session. The major indices rebounded from intraday lows and finished in positive territory.
The gains added to the momentum from the previous session, pushing the major averages to their highest closing levels in more than a month.
The Nasdaq rose 187.42 points, or 0.8%, to 22,822.42, the Dow Jones Industrial Average gained 275.88 points, or 0.6%, to 48,185.80, and the S&P 500 advanced 41.85 points, or 0.6%, to 6,824.66.
The intraday turnaround came as traders monitored developments in the Middle East and their impact on oil prices.
Crude initially rebounded sharply from Wednesday’s steep decline, before trimming gains while still ending significantly higher.
The earlier surge in oil prices reflected concerns about the stability of the ceasefire, with Iran accusing the U.S. and Israel of breaching the agreement.
Iran’s deputy foreign minister Saeed Khatibzadeh said in an interview with the BBC that the country had once again shut down the Strait of Hormuz.
Khatibzadeh described Israel’s strikes on Lebanon earlier in the day as an “intentional grave violation” of the ceasefire.
However, oil prices later eased after Benjamin Netanyahu said Israel would begin negotiations with Lebanon “as soon as possible.”
Netanyahu added that discussions would center on disarming Hezbollah and working toward more stable relations between the two countries.
On the sector front, retail stocks posted strong gains, with the Dow Jones U.S. Retail Index climbing 2.9% to its highest level in over two months.
Semiconductor stocks also showed solid performance, with the Philadelphia Semiconductor Index rising 2.1%.
Transportation and banking stocks moved higher as well, while software stocks remained under pressure throughout the session.