US stocks opened higher on Friday as oil prices eased slightly, though major indexes remained on track for a mixed weekly performance amid lingering concerns over the ongoing Iran conflict and its impact on global energy supplies.
The Dow Jones Industrial Average (DJIA) rose about 261 points, or 0.6%, at the open. The S&P 500 gained around 0.5%, while the Nasdaq Composite also advanced 0.5%.
Despite the early gains, the S&P 500 is headed for its third consecutive weekly decline, down about 0.3% so far this week. The Dow is tracking a steeper weekly fall of around 1.1%, while the tech-heavy Nasdaq is marginally higher by roughly 0.3% for the week.
Oil prices retreated after a sharp rally in the previous session. West Texas Intermediate (WTI) crude slipped about 1% to around $94 per barrel, while Brent crude eased roughly 0.5% to near $99 per barrel. Brent had closed above $100 on Thursday for the first time since August 2022 amid escalating tensions in West Asia.
Markets had come under pressure in the previous session after Iran’s Supreme Leader Mojtaba Khamenei said the Strait of Hormuz should remain closed as a means to pressure adversaries. The vital shipping route has seen traffic nearly halted since the US and Israel launched strikes on Iran late February, heightening concerns over global energy supply disruptions.
However, Pete Hegseth, the US Defense Secretary, downplayed concerns over the closure of the waterway, saying during a briefing at the Pentagon that authorities were managing the situation and that there was no need for immediate worry.
Investors were also digesting fresh inflation data from the Federal Reserve’s preferred gauge, the Personal Consumption Expenditures Price Index. Data released by the Bureau of Economic Analysis showed the index rose 0.3% in January from the previous month, in line with expectations, while the annual rate came in at 2.8%.
Core PCE, which excludes volatile food and energy prices, rose 0.4% for the month and 3.1% year-on-year, matching expectations.
Meanwhile, data also indicated weaker economic momentum, with US Gross Domestic Product expanding at an annualised rate of just 0.7% in the fourth quarter of 2025, underscoring a slowdown in growth.
