Dow futures tumble on Friday: 5 things to know before market opens

US stock futures slipped modestly on Friday amid a rise in oil prices as investors tracked fresh developments in the Middle East.

Dow Jones Industrial Average futures fell 91 points, or 0.2%, while S&P 500 futures and Nasdaq 100 futures also dropped 0.2% each.

The market sentiment looked cautious even as President Donald Trump decided to extend a pause on strikes against Iran’s energy infrastructure until April 6.

The delay eased some immediate fears of a direct hit to energy supplies, but oil prices remained volatile as tensions continued.

5 things to know before Wall Street opens

1. President Trump's decision to extend a pause on strikes seemed like a positive development, but oil prices didn't reflect any calm.

Brent crude prices surged towards $110 a barrel on Friday as fear of supply disruptions continued to linger in the markets.

Earlier, the oil prices retreated a bit after  President Donald Trump said Iran had allowed 10 oil tankers to pass through the Strait of Hormuz, which signalled a possible easing in tensions.

2. The tense mood of investors was visible across assets as US Treasury yields edged higher on Friday.

The benchmark 10-year Treasury yield rose nearly 2 basis points to 4.434%, while the 2-year yield was at 3.988%, and the 30-year yield climbed almost 3 basis points to 4.962%

The analysts said that although the extension of the pause on strikes is good news, they are more concerned about the long-term outlook, as there is no update around any ceasefire negotiations.

3. The impact of the war in the Middle East is now visible across sectors of the US economy.

Technology has fallen 15.5% from its October peak, communication services is down 14.5% from its Feb. 2 high, and consumer discretionary has dropped 13.5% from its Jan. 12 top.

The financials sector has also slid 12.8% from its Jan. 6 high.

The broad pullback suggests investors are rotating away from risk-sensitive groups as energy volatility and war concerns weigh on sentiment across the market.

4. Despite the recent slump in prices, Wells Fargo is sticking with its bullish call on gold.

The financial services company said that the recent pullback does not change its view that prices could reach $6,100 to $6,300 an ounce by the end of 2026.

Wells Fargo linked gold’s latest weakness to a firmer US dollar and higher real yields and said that temporary pressures have weighed on the metal in the short term.

5. Global investors looked confused on Friday as contradictory signals weighed on the sentiment.

European markets opened higher on Friday after President Donald Trump extended by 10 days the pause on strikes against Iran.

The mood was less upbeat in Asia, where markets traded mixed to lower as uncertainty over US-Iran talks continued to weigh on sentiment.

South Korea’s Kospi dropped 3.6%, Japan’s Nikkei 225 fell 1.6%, and Australia’s S&P/ASX 200 slipped 0.42%, while Hang Seng futures also pointed lower.