US stock futures rebound as oil and bond-market pressures remain in focus: Dow Jones, S&P, Nasdaq, Wall Street

US equity futures advanced on Friday, pointing to a recovery at the opening bell after Wall Street suffered a broad selloff in the previous session as higher crude prices and rebounding Treasury yields unsettled investors.

The prospect of buying stocks following Thursday’s decline provided some support, although persistent geopolitical tensions and elevated energy prices continued to temper risk appetite.

US crude futures retreated substantially from their earlier highs but remained around 0.2% higher, with markets still focused on the continuing confrontation between Washington and Tehran.

Nvidia results and Jackson Hole loom over markets

Investors may be reluctant to take large positions ahead of a busy week featuring quarterly earnings from Nvidia (NASDAQ:NVDA) and the Jackson Hole economic symposium.

“Next week’s results from Nvidia could put some of the focus back on corporate earnings but, as we head towards the autumn, a chill has started to descend for markets,” said Dan Coatsworth, head of markets at AJ Bell.

He added, “Investors will be looking for a comfort blanket when Federal Reserve chair Kevin Warsh addresses the Jackson Hole meeting at the end of this month.”

Nvidia’s results will provide another indication of the strength of artificial intelligence-related spending, while comments from Jackson Hole could influence expectations for the Federal Reserve’s next monetary policy moves.

Wall Street suffers steep Thursday losses

The expected Friday rebound comes after US equities weakened sharply during Thursday’s session, with losses accelerating as trading progressed.

The Dow Jones Industrial Average sank 703.84 points, or 1.3%, to 52,759.21. The Nasdaq Composite dropped 263.92 points, or 1%, to 26,067.17, while the S&P 500 lost 66.82 points, or 0.9%, to finish at 7,641.16.

The major averages ended close to their session lows, more than reversing the modest gains recorded on Wednesday.

US-Iran tensions send crude prices higher

Oil was a major source of pressure after President Donald Trump intensified his economic threats against Iran.

Trump announced on Truth Social that he was launching “economic warfare” against Tehran, describing the measures as the “most crushing economic operation ever taken against any country.”

He also threatened “tremendous economic consequences” for countries that “allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran.”

Iranian Foreign Minister Abbas Araghchi responded by calling the proposed “Economic D-Day” a “diversion from America’s own crisis: unprecedented debt & surging interest costs.”

“Doubling down on failed policies will only bring further defeat—and enmity of Iranians,” Araghchi wrote on X. “US economic terrorism threatens global economy and sovereignty worldwide.”

US crude futures subsequently jumped almost 3% to their highest levels in nearly a month as markets saw little indication that the conflict was moving closer to a resolution.

Oil rally reverses part of Treasury yield decline

The surge in energy prices also helped drive Treasury yields higher, reversing some of the sharp decline recorded a day earlier.

Yields had dropped on Wednesday after the US Treasury unveiled larger buyback operations for longer-term government debt. However, renewed concerns that elevated energy costs could reinforce inflationary pressures brought sellers back into the bond market.

Higher yields can make equities less attractive by increasing financing costs and improving the relative returns available from fixed-income assets.

Walmart selloff adds to pressure on equities

Walmart (NYSE:WMT) contributed heavily to Thursday’s weakness, plunging more than 9% after reporting disappointing second-quarter comparable-sales growth and issuing weaker-than-expected guidance.

The reaction spread through the retail sector, with the Dow Jones US Retail Index falling 2.5%.

Airline stocks were also hit, sending the NYSE Arca Airline Index down 2.4%, while housing, pharmaceutical and biotechnology shares recorded sizeable declines.

Gold miners were among the notable exceptions, advancing alongside higher precious-metal prices.

US futures are therefore signalling an initial recovery attempt on Friday, but the combination of volatile oil prices, elevated bond yields and geopolitical uncertainty could keep trading cautious ahead of Nvidia’s earnings and Jackson Hole.

This article was written by the editorial team at InvestorsHub/ADVFN and is provided for informational purposes only. In some cases, editorial staff may use artificial intelligence–based tools to assist in the research, drafting, or editing of content, under human review and oversight. This article does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. The views expressed are based on publicly available information believed to be reliable at the time of publication, but accuracy or completeness is not guaranteed. Readers should conduct their own independent research and consult a qualified financial professional before making any investment decisions.