US Stocks Tumble Amid Geopolitical Uncertainty

US stock futures stabilized on Friday after Wall Street came under renewed pressure in the previous session, as investors grappled with uncertainty surrounding the Iran war and surging oil prices. In regular trading on Thursday, the Dow dropped 1.61%, while the S&P 500 and Nasdaq Composite lost 0.56% and 0.26%, respectively. Eight of the 11 S&P sectors ended lower, with consumer staples, materials, and industrials leading the declines. Caterpillar fell 3.6%, while GE Aerospace dropped 3.4% as investors priced in the risk of supply chain disruptions and potential margin compression. Oil prices rallied more than 8% on Thursday and were headed for their biggest weekly gain since 2022, though they pulled back early on Friday after the Trump administration signaled it is considering several options to address the recent price spike. Investors now look ahead to the February jobs report due later today for further clues on the health of the US labor market.

The Dow Jones Index fell -785 points or 1.61 percent on Thursday to close at 47955 points. Leading the losses are Goldman Sachs (-3.68%), Merck (-3.58%) and Sherwin-Williams (-3.52%).

US equities extended their losses on Thursday as the escalating conflict in Iran drove crude oil prices above $80 per barrel and sparked widespread fears of a global economic slowdown and resurging inflation. The Dow fell 1.8% while the S&P 500 and the Nasdaq retreated 0.81% and 0.61% respectively as investors dumped cyclically sensitive industrial and materials stocks. Caterpillar fell 3.6% while GE Aerospace dropped 3.4% as investors priced in the risk of supply chain disruptions and margin compression. Financial heavyweights also faced significant selling pressure with Goldman Sachs down 3.7% and Morgan Stanley retreating 3% amid a volatile yield environment. Energy benchmark WTI crude surged above $80 per barrel after reports of an Iranian missile strike on a tanker stoked fears of supply disruptions in the Strait of Hormuz.