Dow, S&P 500, Nasdaq futures tumble as oil rally shakes markets

Futures tied to the Dow Jones Industrial Average dropped 0.5% after another volatile and losing session on Thursday. Contracts linked to the S&P 500 fell 0.6%, while futures for the tech-heavy Nasdaq-100 declined 0.8%, News.Az reports, citing foreign media.

Oil prices surged after Qatar’s energy minister warned that the war involving Iran could force Gulf exporters to shut down production within days and potentially push prices to $150 a barrel. U.S. benchmark West Texas Intermediate crude rose more than 6% to exceed $86 a barrel, while global benchmark Brent Crude climbed nearly 5% to above $89.

Both oil benchmarks are on track for their largest weekly gains in four years as tanker traffic through the strategically vital Strait of Hormuz remains close to a standstill.

The surge in oil prices comes despite efforts by Donald Trump to slow the rally, including a temporary waiver allowing India to purchase Russian crude. Rising energy prices have fueled concerns about inflation, with U.S. gasoline prices reaching their highest levels since 2024.

Investors are also closely watching the upcoming February jobs report, which could influence the outlook for the Federal Reserve. Economists expect the nonfarm payrolls report to show that the U.S. added about 55,000 jobs, while the unemployment rate is projected to remain unchanged at 4.3%. A weaker-than-expected result could strengthen the case for interest-rate cuts.

After a turbulent week, the S&P 500 is on track for a weekly decline, while the Dow Jones Industrial Average has dropped more than 2% and slipped into negative territory for 2026. The Nasdaq Composite, however, may narrowly avoid losses and post a modest weekly gain.