U.S. stock index futures fell on Friday as the conflict in Iran entered its fourth week, driving up energy prices and prompting investors to reassess the Federal Reserve's rate-cut path.
Dow futures dropped 0.52%, S&P 500 futures declined 0.59%, and Nasdaq 100 futures fell 0.82%. The CBOE Volatility Index (VIX) rose to 25.78, indicating heightened market risk aversion.
Brent crude rose 1.7% to over $110 per barrel, reversing earlier losses driven by signals of increased supply from major economies.
According to LSEG data, traders have postponed the Federal Reserve's first rate cut from December 2026 to 2027, reflecting increased uncertainty over inflation and energy prices.
On the corporate front, FedEx reported strong earnings and raised its guidance, with pre-market shares rising about 10%, indicating resilient global demand. The energy sector continued its strength, with the S&P Energy Index poised for a 13th consecutive week of gains.
