US stock futures edged higher on Friday as oil prices declined and technology stocks rebounded from earlier losses. The move came amid mixed signals regarding energy costs and artificial intelligence growth.
Futures on the Dow Jones Industrial Average rose by 0.1 percent, while contracts for the S&P 500 gained 0.3 percent. Nasdaq-100 futures led the advance with an 0.8 percent jump, recovering ground lost in the previous session.
Delta Air Lines is set to report its third quarter earnings before the market opens. Higher fuel costs have weighed on profits for air carriers, and Delta's release marks the unofficial start of the earnings season for major Wall Street banks, which are scheduled to report results next Tuesday.
Technology stocks stabilized after concerns emerged on Thursday regarding OpenAI's financial performance. The Financial Times reported that OpenAI's annualized revenue had reached $50 billion, a figure that fell $20 billion short of estimates. However, Bloomberg later reported that OpenAI expects to reach or exceed $70 billion in annualized revenue by the end of the year. This update helped alleviate fears that the current boom in artificial intelligence investment is losing momentum.
Declining oil prices also supported the broader market. Brent crude oil futures, which serve as the international benchmark, fell to $103 per barrel. This drop follows a surge of more than 4 percent in the previous session, driven by concerns over the war in the Middle East that have fueled inflation worries and contributed to higher interest rates globally.
Asian stocks slipped on Friday, positioning them for a second consecutive weekly decline. Investors expressed concern over elevated energy prices, volatility in bond markets, and the substantial capital required to fund artificial intelligence projects. Brent crude futures traded at $103.70 per barrel during Asian trading hours.
President Donald Trump stated on Thursday that the United States will not launch an attack on Iran before the November midterm elections. Despite this comment, traders remained skeptical that significant progress would be made to end the conflict. Nick Twidale, chief market strategist at ATFX Global, noted that the key question for markets is whether Trump will adhere to this statement if Iranian attacks intensify. He warned that any indication the White House is reconsidering military action could cause oil prices to spike sharply, particularly as tanker traffic through the Strait of Hormuz remains under significant pressure.
The University of Michigan will release its latest consumer sentiment survey results later in the week. This data will provide a gauge of consumer confidence and indicate how much consumers have been affected by recent volatility in oil markets.