US stock futures were lower but recovering from a deeper sell-off on Friday, following Israel’s retaliatory strike on Iran that spooked the market overnight. Dow Jones Industrial Average futures were down roughly 0.2%, bouncing back from a 1.4% drop, while S&P 500 futures also slipped about 0.2%. Nasdaq 100 contracts slid 0.4% after sharper falls.
The initial alarm over Israel’s attack on an Iranian city with nuclear facilities led to a rush to safe havens like gold, as oil prices surged and stocks and Treasury yields sank. The CBOE Volatility index hit a more than five-month high as uncertainty loomed.
Despite signs that the Israeli strike was limited in scope, investors remain on high alert. Iran confirmed the drone attack but stated that it failed. The market was already under pressure before the shock due to uncertainty about Federal Reserve interest-rate cuts.
On Thursday, the S&P 500 experienced five consecutive losing days as disappointing earnings from Netflix weighed on investor sentiment. Shares of the streaming giant slid 6% in pre-market trading. Friday brought results from Procter & Gamble, which raised its full-year profit forecast, and American Express, which posted a profit beat as wealthy customers continued spending.
US government bonds pulled back from their biggest rally of the year, with the yield on the 10-year Treasury down to around 4.59%. In commodities, Brent crude futures erased an earlier spike above $90 a barrel to trade around $86.50, while gold prices were lower.
Amid inflation concerns, American Express CEO Steve Squeri noted that premium consumers are still feeling positive about the economy and are likely to continue spending. Netflix’s strong subscriber growth and ability to raise prices were highlighted by Pivotal Research, suggesting the stock may be undervalued compared to historical norms.
Investors are closely monitoring the market as geopolitical tensions and economic uncertainties continue to impact stock futures and commodity prices.
