U.S. stock futures were mixed on Friday, as the Dow Jones index slipped and the Nasdaq 100 and S&P 500 indices rose, following Thursday’s higher close.
According to Reuters, the U.S. stated it can maintain its naval blockade of Iran “indefinitely,” and Treasury Secretary Scott Bessent warned of impending measures “never been seen in the history of economic isolation.”
The economic pressure campaign follows fresh Iranian attacks on vessels in the Strait of Hormuz, where falling shipping traffic has led the International Energy Agency to forecast a 4% drop in global oil supply this year.
The unchanged July Producer Price Index reading added to signs of easing inflation following Wednesday’s softer-than-expected Consumer Price Index report. Traders subsequently scaled back expectations for a September Fed rate hike, with markets pricing a 32.4% probability of an increase and a 67.6% chance of no change.
Meanwhile, the 10-year Treasury bond yielded 4.66%, and the two-year bond was at 4.15%. The CME Group’s FedWatch tool projections show markets pricing a 32.6% likelihood of the Federal Reserve hiking the current interest rates during its September meeting.
| Index | Performance (+/-) |
| Dow Jones | -0.16% |
| S&P 500 | 0.05% |
| Nasdaq 100 | 0.15% |
| Russell 2000 | -0.08% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, were higher in premarket on Friday. The SPY was up 0.098% at $778.64, while the QQQ advanced by 0.17% to $733.3.
Stocks In Focus
Applied Materials
- Applied Materials Inc. (NASDAQ:AMAT) shares slipped by 4.81% despite posting better-than-expected financial results for the third quarter and issuing strong guidance for the current quarter.
- Benzinga’s Edge Stock Rankings indicate that AMAT maintains a strong price trend in the long and medium terms but a weak trend in the short term, with a poor value score.
Globant
- Globant SA (NYSE:GLOB) shares tumbled by 14.81% after reporting mixed second-quarter financial results and cut its FY26 guidance below estimates.
- Benzinga’s Edge Stock Rankings indicate that GLOB maintains a strong price trend in the short and medium terms but a weak trend in the long term, with a poor quality score.
Workday
- Workday Inc. (NASDAQ:WDAY) fell 0.47% following a nearly 18% rally a day earlier as Reuters reported that Silver Lake is in talks to acquire the company.
- Benzinga’s Edge Stock Rankings indicate that WDAY maintains a strong price trend in the short and medium terms but a weak trend in the long term, with a moderate growth score.
JD.Com
- JD.Com Inc. (NASDAQ:JD) declined by 3.52% even though it returned to operating profit, but it saw its first-ever revenue decline since its 2014 IPO.
- Benzinga’s Edge Stock Rankings indicate that JD maintains a strong price trend in the long, short, and medium terms, with a good value score.
- Reddit Inc. (NYSE:RDDT) jumped 12.45% as S&P Dow Jones Indices announced the social media platform will replace AvalonBay Communities Inc. (NYSE:AVB) in the benchmark index effective before the opening bell on Tuesday, August 18.
- Benzinga’s Edge Stock Rankings indicate that RDDT maintains a weak price trend in the short, long, and medium terms, with a good growth score.
SanDisk
- SanDisk Corp. (NASDAQ:SNDK) rose 3.70% as it announced that it expected revenue to grow at a mid-to-high-teens annual rate through fiscal 2028-2030, with adjusted gross margins near 80%, operating margins around 75%, and free cash flow at roughly 50% of revenue.
- Benzinga’s Edge Stock Rankings indicate that SNDK maintains a weak price trend in the short and medium terms but a strong trend in the long term, with a poor value score.
Cues From Last Session
Energy and materials stocks bucked the overall market trend to close lower on Thursday, while most S&P 500 sectors ended higher, led by big gains in tech, real estate, and communication services. The benchmark S&P 500 settled at a fresh record high as U.S. equities rallied following fresh producer price index data.
| Index | Performance (+/-) | Value |
| Dow Jones | 0.13% | 53,839.99 |
| S&P 500 | 0.65% | 7,798.99 |
| Nasdaq Composite | 0.81% | 26,803.02 |
| Russell 2000 | 0.24% | 3,052.85 |
Insights From Analysts
Alex Sagal, Global Equity Analyst at Wells Fargo, maintains a positive yet measured outlook on the U.S. stock market. He emphasizes that the S&P 500 Index’s push into record territory is driven by improving fundamentals rather than speculative hype.
Earnings growth reached 31% in the second quarter, leading Sagal to note, “All-time highs for equity markets are being supported by improving fundamentals, not just preseason-like optimism.”
Market participation has also broadened beyond mega-cap leaders, evidenced by the S&P 500 Equal Weighted Index reaching new highs.
However, Sagal cautions that ongoing risks like elevated oil prices, high interest rates, and geopolitical tension continue to impact valuations. Declaring that “every strong roster has an injury report,” he advises investors to avoid overextending.
His core recommendation is to “stay constructive, but disciplined, with equity-market exposure.” He suggests buying U.S. Large Cap Equities and Information Technology on pullbacks while expanding into AI-linked areas like Electrical Equipment, Machinery, Banks, and Construction Materials.
Upcoming Economic Data
Here’s what investors will be keeping an eye on Friday.
- July’s retail sales data will be out by 8:30 a.m. ET.
- June’s manufacturing & trade inventories data and August’s preliminary University of Michigan consumer survey data will both be released by 10:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading higher in the early New York session by 1.66% to hover around $82.60 per barrel.
Gold Spot US Dollar fell 0.12% to hover around $4,345.65 per ounce. The U.S. Dollar Index spot was 0.20% lower at the 99.7610 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 1.60% lower at $62,724.85 per coin over the last 24 hours.
Asian markets were mixed on Friday, as Japan’s Nikkei 225, China’s CSI 300 and South Korea’s Kospi indices. Australia’s ASX 200, Hong Kong’s Hang Seng, and India’s Nifty 50 indices fell. European markets were also mixed in early trading.
Photo courtesy: Frontpage / Shutterstock.com
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