US stock futures edged higher on Friday as Wall Street tried to recover from Thursday’s selloff, but the rebound did little to erase a difficult week for risk assets.
Dow and S&P 500 futures were up about 0.3% in early trading, while Nasdaq 100 futures gained roughly 0.6%.
The S&P 500 and Nasdaq were still heading for weekly declines of about 2%, with both poised to snap three-week winning streaks.
Elevated Treasury yields, uncertainty around Iran and US fiscal credibility remain the main restraints, even as technology and crypto shares attempt to stabilise before the opening bell.
5 things to know before Wall Street opens
1. Futures bounce, but the weekly damage remains
Friday’s gains follow a broad retreat on Thursday, when the Dow fell 1.3%, the S&P 500 lost 0.9% and the Nasdaq Composite dropped 1%.
Meta and Tesla were among the stronger pre-market names as technology shares attempted to recover.
The bigger concern is that long-duration growth stocks are being forced to absorb a much higher cost of capital just as investors question how quickly heavy AI spending will translate into profits.
2. Treasury yields remain the market’s pressure point
The 10-year Treasury yield was near 4.69% and the 30-year around 5.25%, keeping borrowing costs close to this week’s highs.
Washington’s plan to at least double long-dated liquidity-support buybacks initially pushed yields lower, but that relief has largely faded.
JPMorgan strategists Jay Barry and Jason Hunter see the intervention as insufficient without genuine fiscal consolidation, warning that persistent deficits could ultimately keep upward pressure on long-term yields.
3. Iran keeps oil and inflation risk elevated
Brent crude eased towards $93.50 a barrel on Friday but remained on course for a weekly gain of roughly 5%.
The US-Iran standoff and uncertainty over normal shipping through the Strait of Hormuz continue to sustain a sizeable geopolitical premium.
For equities, expensive energy creates a double risk: it can weaken household spending while also keeping inflation and bond yields higher.
4. Ross Stores and crypto shares lead early movers
Ross Stores jumped more than 8% before the bell after stronger second-quarter results and an improved full-year profit outlook.
Sales rose 13% to $6.3 billion, helped by a 10% increase in comparable-store sales.
Crypto-linked shares also rallied as Bitcoin moved above $78,000.
Strategy and Coinbase were among the gainers as regulatory optimism improved following President Donald Trump’s renewed push for crypto legislation.
5. Nvidia, PCE and Jackson Hole loom next week
Friday may offer only a pause before a heavier catalyst calendar.
Nvidia reports fiscal second-quarter results on Wednesday, August 26, the same day the US releases July personal income and spending data, including the Fed’s preferred PCE inflation gauge.
The Jackson Hole symposium follows from August 27-29, with Fed Chair Kevin Warsh due to speak on August 28.
His remarks will be closely watched for clues on whether September rates remain unchanged.
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