Futures linked to the DOW JONES index fell 0.51% to 47,707.60 points, while those of the S&P 500 fell 0.66%, to 6,785.80 points. NASDAQ 100 futures fell 0.80% to 24,819.90 points.
Wall Street is coming off a negative day yesterday Thursday due to growing concern about the escalation of the conflict between the US and Iran. The DOW JONES lost nearly 785 points, or 1.6%, while the S&P 500 fell about 0.6%, with eight of the 11 sectors negative. He Nasdaq Composite was the one that held up best, but fell almost 0.3%.
So far this week the S&P 500 is down 0.7% through Friday’s close, while the Nasdaq is still surviving the upside, up 0.4%. However, The DOW JONES has fallen 2.1% through Thursday’s close and is not only heading for its second consecutive negative week, but also the worst since October of last year.
All this in a week in which the markets have been shaken by the war unleashed between the US and Israel against Iran which, among other things, has led to an interruption of traffic through the Strait of Hormuzthrough which 20% of the world’s oil passes.
“Markets remain in risk aversion mode as concern about conflict duration increases and potential energy supply disruptions,” says Angelo Kourkafas, senior global investment strategist at Edward Jones. Kourkafas believes the surge in U.S. oil prices is aggravating concerns about inflation, which could put pressure on consumer spending.
Today, US West Texas oil futures rise 6.3% to $86.06 per barrel, on track for their biggest rise since March 2022, at the start of the Ukraine war, and in highs since April 2024. The international benchmark Brent crude oil advances 4.5% to $89.23.
Contributing to today’s strong rise are statements from the Qatari Energy Minister to Financial Times warning that the war in the Middle East could force Gulf energy exporters to suspend shipments within days. Saad al-Kaabi has declared to the British newspaper that Crude oil prices could reach $150 per barrel in the coming weeks if oil tankers cannot pass through the Strait of Hormuz.
However, adds Kourkafas, «structural changes have reduced the US’s vulnerability to oil shocks. In our opinion, oil would probably have to remain above $100 for an extended period to significantly slow economic growth. The US has been a net exporter of oil since 2019, and the economy consumes much less energy than before,» explains the expert.
But investors also find this Friday what could be another market catalyst: the February non-farm payrolls report. Economists surveyed by Dow Jones predict a growth of 50,000 jobs, compared to the 130,000 payrolls created in January. They also expect the unemployment rate to remain stable at 4.3%.
At a time when the sharp rise in oil prices threatens to keep inflation very high, the evolution of the labor market is key to determining future movements of the Federal Reserve. Even more so in the midst of a transition in which President Jerome Powell will leave the presidency of the institution to Kevin Warsh starting in May.
At the business level, the final blows of the quarterly results season continue, which is practically over. Costco Wholesale moves lower in the New York morning after putting yesterday after the closure on the table Earnings of $4.58 per share on revenue of $69.6 billion in the second fiscal quarter. Analysts had expected earnings of $4.56 per share and revenue of $69.2 billion. Membership dues totaled $1.36 billion, reflecting a year-on-year increase of 13.6%.
Marvell Technology soars 14% on Wall Street after presenting solid results that were driven by demand for artificial intelligence. The company, which manufactures integrated circuits and semiconductor products, reported adjusted earnings of 80 cents per share on revenue of $2.22 billion. Analysts had expected earnings of 79 cents per share and revenue of 2.21 billion. Management stated that Marvell expects its year-over-year revenue growth to increase each quarter of fiscal 2027.
Shares of textile manufacturer Gap fall almost 8% after the company announced fourth-quarter earnings of 45 cents per sharejust below analysts’ forecasts of 46 cents per share. Gap’s revenue was in line with expectations, reaching $4.24 billion.
Samsara soars more than 10% after the telematics software company presented optimistic forecasts yesterday. Samsara expects full-year adjusted earnings of 65 cents to 69 cents per share, and revenue of $1.97 billion to $1.98 billion. The analyst consensus was for earnings of 59 cents per share and $1.92 billion in revenue. The company also announced in a press release that it uses artificial intelligence to automate workflows and optimize operations.