Stock Futures Mixed as Wall Street Attempts to Rebound From Oil-Fueled Market Sell-Off

 Wall Street attempts to stabilize after sharp sell-off

U.S. stock futures traded mixed early Friday as investors attempted to regain footing following one of Wall Street's weakest sessions in nearly a month.

Dow Jones Industrial Average futures rose around 0.52%, outperforming broader markets as bargain hunters returned after Thursday's decline. S&P 500 futures gained roughly 0.26%, while Nasdaq-100 futures hovered around the flatline as technology stocks continued to face pressure.

​The cautious recovery follows a broad market retreat that erased recent gains after a surge in crude oil prices reignited concerns about inflation and economic growth.

During Thursday's regular trading session, the Dow Jones Industrial Average lost more than 500 points, extending its losing streak to five declines in six sessions. The S&P 500 fell about 1.2%, while the Nasdaq Composite dropped 2.2%, marking both indexes' steepest one-day declines since late June.

Oil surge keeps investors on edge

Energy markets remained the primary catalyst driving investor sentiment.

Brent crude continued trading above the $95-per-barrel mark after jumping roughly 28% in over the last one month while West Texas Intermediate (WTI) crude maintained gains following a nearly 24% rally.

The latest advance came after reports that two Saudi oil tankers were attacked in the Red Sea, raising fears that escalating geopolitical tensions could disrupt global energy supplies.

Investor anxiety intensified after President Donald Trump indicated that the United States was considering a significantly larger military operation against Iran.

Speaking in an interview Thursday, Trump said a decision on a potential strike could come soon, describing the proposed action as larger than previous operations carried out during the conflict.

The comments added another layer of uncertainty for financial markets already grappling with elevated commodity prices and geopolitical risks.

​Earnings disappointments add pressure

While rising oil prices dominated headlines, disappointing earnings from two of the market's largest technology companies also weighed heavily on investor sentiment.

Tesla suffered its worst single-day decline since March 2025 after reporting second-quarter earnings that fell short of Wall Street expectations. The electric vehicle maker's shares plunged nearly 15%, dragging broader growth stocks lower.

Meanwhile, Alphabet also came under pressure after increasing its full-year capital expenditure guidance. Although the company reaffirmed its long-term artificial intelligence strategy, investors reacted negatively to the prospect of higher spending, sending the stock down roughly 7%.

The weakness among megacap technology companies amplified Thursday's losses across the Nasdaq, where heavyweight AI-related stocks continue to exert significant influence over broader market performance.

Markets await next geopolitical developments

Despite Friday's tentative rebound in futures trading, investors remain focused on developments in the Middle East, where military tensions continue to dominate market sentiment.

Higher oil prices threaten to complicate the Federal Reserve's inflation outlook while increasing costs for businesses and consumers alike. At the same time, uncertainty surrounding global energy supplies has pushed investors toward defensive positioning.

With geopolitical headlines likely to remain the primary market driver, traders will be watching for further developments involving Iran, oil supply disruptions and additional corporate earnings releases to determine whether Thursday's sell-off marks a short-term correction or the beginning of a broader risk-off move.​