U.S. Stock Futures Rebound as Investors Weigh Intel Earnings, Geopolitical Risks

U.S. stock index futures advanced in early trading on Friday, staging a partial recovery from the previous session's steep losses. Investors are balancing a mixed bag of corporate earnings with fresh geopolitical and trade policy developments, including new U.S. tariffs and rising tensions in the Middle East.

At 5:44 a.m. ET, Dow E-minis were up 275 points, or 0.53%. S&P 500 E-minis gained 21.25 points (0.29%), and Nasdaq 100 E-minis added 74.75 points (0.26%).

Markets Assess Tech Earnings, Trade News

The move higher follows a significant selloff on Thursday, when the S&P 500 and Nasdaq recorded their largest one-day declines in a month. The drop was fueled by investor anxiety over mounting capital expenditures and cash burn among major technology companies, following recent earnings reports from Alphabet and Tesla.

However, some positive corporate news emerged Friday. Shares of Intel rose 5.3% in premarket trading after the chipmaker forecasted quarterly profit and revenue that surpassed Wall Street estimates. In other company news, Oracle shares gained 3.2% after the Pentagon announced a contract worth nearly $7 billion with the firm to consolidate software licenses.

Geopolitical and Tariff Headwinds

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Investors remain cautious amid new trade measures and global conflicts. The Trump administration announced it would impose new tariffs of 10% and 12.5% on goods from 60 trading partners, including Europe and China, citing lax enforcement of forced-labor bans. "Trump’s replacement tariffs were less shock and awe than the first ones," noted Brian Jacobsen, chief economic strategist at Annex Wealth Management, in a client note.

Geopolitical risks are also elevated after President Donald Trump threatened "major military punishment" for Iran following attacks on two Saudi oil tankers. The incident caused oil prices to surge above $100 a barrel on Thursday, raising concerns that a sustained energy shock could reignite global inflation.

Fed Policy in Focus

The potential for rising inflation has shifted expectations for Federal Reserve policy. According to CME’s FedWatch tool, markets are now pricing in a roughly one-in-three chance of an interest rate hike at the central bank's meeting next week, up from 12% a week ago. Investors will be closely watching for the upcoming Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, due next week.

Despite the morning's gains, the major indices were on track for weekly losses. The S&P 500 and Nasdaq were set for a second consecutive weekly decline, while the Dow was headed for its third straight week of losses.