US stocks opened in the red on Friday, with broad-based weakness across major indices as investors stayed cautious amid rising oil prices and fading hopes of near-term rate cuts.
The Dow Jones Industrial Average fell 0.67%, while the S&P 500 declined 0.82%. The Nasdaq Composite dropped 1.4% in early trade, leading losses on Wall Street.
At 19:10 IST, oil prices were sharply higher across the board, adding to inflation concerns. WTI Crude rose to $97.58, up $1.26 or 1.31%, while Brent Crude climbed to $112.7, gaining $5.27 or 4.91%.
Murban Crude surged to $128.8, up $12.07 or 10.34%, and Natural Gas advanced to $3.243, rising $0.178 or 5.81%.
The weak start comes a day after markets logged sharp declines, with investors recalibrating expectations after Jerome Powell signalled a more cautious stance on interest-rate cuts.
While the Federal Reserve has kept the door open for one cut this year, recent hawkish commentary has led markets to bet that policymakers may stay on hold for longer.
On the data front, US jobless claims fell to 205,000, pointing to continued resilience in the labour market. Investors are also awaiting the Philadelphia Fed Manufacturing Index for further cues on economic momentum.
Global markets mirrored the cautious mood. European and Asian equities declined, particularly in regions heavily dependent on Middle East energy supplies. The Stoxx Europe 600 is on track to wipe out its gains for the year, while markets in Hong Kong, Japan and South Korea also ended lower.
Safe-haven and bond markets reflected rising inflation worries. Gold was around $4,600 per troy ounce, marking its sixth decline in seven sessions. Meanwhile, the 10-year US Treasury yield climbed above 4.28%, as higher energy prices fuelled concerns over sticky inflation.
Geopolitical tensions remain in focus. US President Donald Trump warned of strong retaliation if further attacks hit key energy infrastructure in Qatar. At the same time, uncertainty around the Strait of Hormuz continues to weigh on sentiment, with global leaders expressing readiness to ensure safe passage through the critical shipping route.
