Stock futures gained after the Dow Jones Industrial Average suffered its steepest one-day loss of 2022, as investors tracked the escalating violence in Ukraine and considered the potential path of U.S. monetary policy.
Futures for the S&P 500 gained 0.4% Friday, at the end of a turbulent week for markets. Contracts for the tech-focused Nasdaq-100 added 0.5% and futures for the Dow Jones Industrial Average rose 0.4%. Stocks slid Thursday, with the Dow dropping more than 600 points, its steepest one-day loss of 2022.
All three major stock indexes were on track to notch weekly losses as of Thursday’s close. Investors have struggled with mixed messages on the potential for escalation between Russia and Ukraine. Secretary of State Antony Blinken warned Thursday of a looming Russian offensive against Ukraine and proposed a last-ditch diplomatic meeting with his Russian counterpart.
Brent crude, the international oil benchmark, fell 1.3% to $91.74 a barrel Friday, while benchmark European gas futures fell 1.5%. U.S. natural-gas futures declined 1.3%.
War between Ukraine and Russia could prolong elevated inflation in developed economies by disrupting supplies of important commodities, said Hani Redha, a portfolio manager at PineBridge Investments. Russia is among the world’s largest suppliers of oil, as well as the biggest exporter of wheat and a major producer of metals such as palladium, aluminum and nickel.
“Inflation is really the big question that will determine how markets play out and that only adds to the delay in resolving the inflation situation,” Mr. Redha said. He expects markets will remain volatile as investors try to assess how central banks will respond to elevated prices and the direction of the Ukraine conflict.
In premarket trading, Shake Shack shares slid 11% after the burger chain guided for weaker-than-expected revenue this quarter. Roku shares dropped 24% after it said supply-chain disruptions continued to affect its growth and TV sales. Earnings are due ahead of the market open from Deere.
In bond markets, the yield on the benchmark 10-year Treasury note crept down to 1.963% from 1.972% Thursday. Yields and prices move inversely.
Economists surveyed by The Wall Street Journal forecast that home sales data for January, due out at 10 a.m. ET, will show a slight drop from December.
Overseas, the pan-continental Stoxx Europe 600 added 0.2%. Major indexes in Asia closed with mixed performance. China’s Shanghai Composite rose 0.7%, while Japan’s Nikkei 225 declined 0.4%. Hong Kong’s Hang Seng shed 1.9%, with declines led by Meituan, which fell 15% after Beijing said it would guide delivery platforms to cut fees and provide more support for merchants.
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