U.S. stock futures were higher on Friday, as the Dow Jones, S&P 500 and Nasdaq 100 indices rose, following Thursday's mixed close.
The U.S. Treasury Department sanctioned 17 vessels targeting Iran's shadow fleet to choke off Tehran's oil revenue. The move adds another layer of uncertainty to an already tight global oil market, with Scott Bessent saying that the U.S. Treasury is "starving the tyrannical regime in Tehran of the money it uses to wage war in the region, and we will continue exposing those who enable the regime's oil sales. No enabler of Iranian sanctions evasion is safe from the full force of Treasury's authorities."
Meanwhile, the 10-year Treasury bond yielded 5.24%, and the 2-year Treasury bond yielded 4.78%, at the last check. The CME Group's FedWatch tool projections show markets pricing in a 19.4% likelihood of the Federal Reserve hiking interest rates after its October meeting.
The SPDR S&P 500 ETF Trust (NYSE: SPY) and Invesco QQQ Trust ETF (NASDAQ: QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket trading on Friday. The SPY rose by 0.45% at $777.38, while the QQQ advanced 0.85% to $753.92.
RenX Enterprises
- RenX Enterprises Corp. (NASDAQ: RENX) was 6.94% lower on Friday premarket as it filed a registration statement to register the resale of up to 24.28 million shares of common stock by selling stockholders.
- MarketDash's Edge Stock Rankings indicate that RENX maintains a weak price trend in the long, short, and medium terms.
Veea
- Veea Inc. (NASDAQ: VEEA) surged 29.46% following the announcement that the New York-based AI-driven edge infrastructure and Platform-as-a-Service (PaaS) company is now fully compliant with Nasdaq's continued listing requirements.
- MarketDash's Edge Stock Rankings indicate that VEEA maintains a strong price trend in the short term but a weak trend in the long and medium terms.
Zhibao Technology
- Zhibao Technology Inc. (NASDAQ: ZBAO) soared 22.18% after the Chinese insurance technology company, which provides digital insurance brokerage services, said it will proceed with a 1-for-50 reverse stock split.
- MarketDash's Edge Stock Rankings indicate that ZBAO maintains a weak price trend in the short, long, and medium terms.
Humana
- Humana Inc. (NYSE: HUM) was 14.94% higher after CMS' 2027 Medicare Advantage and Part D Star Ratings gave Humana's largest Medicare Advantage contract a 4-star rating, making it eligible for bonus payments.
- MarketDash's Edge Stock Rankings indicate that HUM maintains a strong price trend in the medium, long, and short terms, with a poor growth score.
Cues From Last Session
Sectors on the S&P 500 mostly closed higher, led by top gains in energy, consumer staples, and financials on Thursday, while info tech and consumer discretionary lagged.
Insights From Analysts
Mason Mendez, Global Real Assets Analyst at Wells Fargo Investment Institute, maintains a constructive outlook on U.S. large-cap equities.
He attributes market strength to solid economic growth and an unprecedented artificial intelligence investment cycle, which together support double-digit earnings growth forecasts for the S&P 500 Index in 2026.
Mendez notes that the forces lifting equities are simultaneously keeping Treasury yields elevated, as robust business activity, strong consumer spending, and infrastructure demand increase the competition for capital and resources. He explains that "strong growth and the AI (artificial intelligence) investment boom have helped lift equities—but they may also be keeping Treasury yields higher for longer."
While acknowledging that higher rates and policy uncertainty could generate near-term market volatility, Mendez emphasizes that this setup broadens opportunity. "While higher rates may increase market volatility, they also create a broader opportunity set for investors," he highlights.
Ultimately, he believes economic resilience and AI spending provide a supportive backdrop for U.S. equities, while higher yields generate stronger future returns for bond investors and commodities offer an attractive hedge.
Upcoming Economic Data
Here's what investors will be keeping an eye on Friday.
- Kansas City Fed President Jeffrey Schmid will speak at a Kansas City Economic Outlook event at 9:30 a.m. ET. October's preliminary University of Michigan consumer sentiment survey data will be released by 10:00 a.m. ET.
Commodities, Crypto, And Global Equity Markets
Crude Oil WTI futures were trading lower in the early New York session by 1.40% to hover around $90.20 per barrel.
Gold Spot US Dollar rose 1.32% to hover around $4,188.04 per ounce. The U.S. Dollar Index spot was 0.08% lower at the 102.0590 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.30% lower at $82,608.20 per coin over the last 24 hours.
Asian markets traded mixed on Friday, as Hong Kong's Hang Seng Index, China's CSI 30, Australia's S&P/ASX 200, and India's Nifty 50 indices rose, while South Korea's Kospi and Japan's Nikkei 225 indices dropped. European markets were mostly higher in early trading.
