The major U.S. index futures are currently pointing to a higher open on Friday, with stocks likely to move back to the upside after coming under pressure over the course of the previous session.
The futures climbed more firmly into positive territory after the Labor Department released a report showing much stronger than expected U.S. job growth in the month of April.
The Labor Department said non-farm payroll employment shot up by 115,000 jobs in April after surging by an upwardly revised 185,000 jobs in March.
Economists had expected employment to climb by 63,000 jobs compared to the jump of 178,000 jobs originally reported for the previous month.
The report showed notable job growth in the healthcare, transportation and warehousing, and retail sectors, while federal government employment continued to edge lower.
Meanwhile, the report said the unemployment rate came in at 4.3 percent in April, unchanged from March and in line with economist estimates.
The data may help ease concerns about the economic impact of the ongoing conflict in the Middle East even after the U.S. and Iran exchanged fire in the Strait of Hormuz last night.
Three U.S. destroyers came under fire from Iranian missiles and drones as they transited the strait, but U.S. Central Command said it eliminated the inbound threats and targeted the Iranian military facilities responsible for the attacks.
In a subsequent phone call with ABC News' Rachel Scott, President Donald Trump called the retaliatory strikes against the Iranian targets "just a love tap" and said the ceasefire remains in effect.
Stocks turned in a lackluster performance early in the session on Thursday but came under pressure over the course of the trading day. The major averages all moved to the downside, although selling remained relatively subdued.
The major averages finished the day off their lows of the session but still in the red. The Dow slid 313.62 points or 0.6 percent to 49,596.97, the S&P 500 fell 28.01 points or 0.4 percent to 7,337.11 and the Nasdaq edged down 32.75 points or 0.1 percent to 25,806.20.
Stocks showed a lack of direction early in the day as traders remain optimistic about a peaceful end to the conflict in the Middle East but may want to see more tangible results from U.S.-Iran negotiations before making big bets.
President Donald Trump said Wednesday that the U.S. and Iran have had "good talks over the last 24 hours" and expressed confidence a deal could be reached in the coming days.
A report from Axios said U.S. officials expect Iran's response to a one-page memorandum of understanding to end the war within the next 24-48 hours.
However, selling pressure picked as crude oil prices saw a substantial turnaround over the course of the day, with U.S. crude oil futures jumping by more than 1 percent in electronic trading after plummeting by as much as 5.5 percent.
Crude oil prices bounced back after a report from CNN said Iran is attempting to force shippers to comply with a new protocol for transiting the Strait of Hormuz.
CNN said it has seen an application form issued by Iran's newly created Persian Gulf Strait Authority that must be completed by all transiting vessels to ensure safe passage.
With the document seen as part of efforts by Iran to formalize control over the waterway, the report has led to renewed concerns about a re-escalation of the Middle East conflict.
In U.S. economic news, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits rebounded by less than expected in the week ended May 2nd.
The Labor Department said initial jobless claims rose to 200,000, an increase of 10,000from the previous week's revised level of 190,000.
Economists had expected jobless claims to climb to 205,000 from the 189,000 originally reported for the previous week.
Computer hardware stocks moved sharply lower over the course of the session, with the NYSE Arca Computer Hardware Index tumbling by 2.9 percent after ending Wednesday's trading at a record closing high.
Significant weakness was also visible among semiconductor stocks, as reflected by the 2.7 percent slump by the Philadelphia Semiconductor Index.
Energy stocks also saw considerable weakness despite the rebound by the price of crude oil, while software and airline stocks showed strong moves to the upside.
Commodity, Currency Markets
Crude oil futures are rising $0.23 to $95.04 a barrel after falling $0.27 to $94.81 a barrel on Thursday. Meanwhile, after rising $16.60 to $4,710.90 an ounce in the previous session, gold futures are inching up $7.30 to $4,718.20 an ounce.
On the currency front, the U.S. dollar is trading at 156.57 yen versus the 156.91 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1777 compared to yesterday's $1.1725.
Asia
Asian stocks declined on Friday as renewed hostilities between the U.S. and Iran lifted crude oil prices and revived inflation worries.
The U.S. and Iran traded fire in the Strait of Hormuz and accused each other of carrying out attacks in the sharpest confrontation since the fragile U.S.-Iran ceasefire came into effect on April 7.
Iran reportedly activated its air defense systems, intensifying fears of a broader military crisis in the region. U.S. President Donald Trump insisted that the ceasefire remained in effect but warned of harsher military action if no deal is signed quickly.
Traders also looked ahead to the release of the U.S. non-farm payrolls report later in the day for directional cues after private sector job growth soared in April.
Analysts expect an increase of 62,000 jobs in the month, down from 178,000 in March, while the unemployment rate is seen holding steady at 4.3 percent.
Gold traded higher above $4,700 an ounce in Asian trading as the dollar index struggled around the 98 mark. Brent crude futures climbed toward $101 a barrel as fresh U.S.-Iran tensions threatened to derail diplomatic efforts to end the conflict.
China's Shanghai Composite Index finished marginally lower at 4,179.95 ahead of the Trump-Xi summit next week in Beijing.
Hong Kong's Hang Seng Index dropped 0.9 percent to 26,393.71 ahead of earnings from Alibaba and Tencent due next week.
Japanese markets ended lower due to profit-taking after a record week. The Nikkei 225 Index dipped 0.2 percent to 62,713.65 after hitting a record high on Thursday. The broader Topix Index ended 0.3 percent lower at 3,829.48.
Technology giant SoftBank Group plunged 4.6 percent after rallying 18 percent in the previous session. Toyota Motor lost 2.2 percent after the automaker announced a significant decline in its operating profit for the fourth fiscal quarter.
The yen was moderately higher against the dollar on intervention fears and expectations of a hawkish shift at the Bank of Japan ahead of U.S. Treasury Secretary Scott Bessent's visit to Tokyo next week.
Seoul stocks recovered from an early slide to end slightly higher, extending gains for a fourth consecutive session, led by auto and robotics stocks. The Kospi inched up 0.1 percent to 7,498, marking another record closing high.
Australian stocks tumbled as renewed Mideast tensions curbed investors' appetite for riskier assets. The benchmark S&P/ASX 200 Index slumped 1.5 percent to 8,744.40, while the broader All Ordinaries Index settled 1.4 percent lower at 8,980.50.
Tabcorp Holdings slumped 14.2 percent amid money-laundering probes. Macquarie Group fell 1.1 percent despite the investment bank reporting its second-biggest annual profit.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index ended down 0.7 percent at 13,175.13 as uncertainty grew over a peace deal in the Middle East.
Europe
European stocks have moved to the downside on Friday as escalating U.S.-Iran tensions curbed investors' appetite for riskier assets.
Investors also watched the latest British political developments after early results from nationwide elections suggested a historic drubbing for Prime Minister Keir Starer's Labor Party and sweeping gains for the hard-right Reform U.K. party of Nigel Farage.
In economic news, German industrial output dropped 0.7 percent in March, marking the second consecutive monthly decline, Destatis reported. The fall confounded economists' forecast of a 0.4 percent increase and followed a 0.5 percent drop in February.
On a yearly basis, industrial production decreased 2.8 percent after posting a 0.2 percent fall.
Elsewhere. U.K. house prices dropped for the second straight month in April as a result of the ongoing war in the Middle East, according to data published by the mortgage lender Halifax.
House prices dropped 0.1 percent on a monthly basis in April but slower than the 0.5 percent decrease in March. Analysts had expected prices to remain flat.
While the U.K.'s FTSE 100 Index is down by 0.1 pe3rcent, the French CAC 40 Index is down by 0.8 percent and the German DAX Index is down by 0.9 percent.
Lender Commerzbank has moved to the downside on the day after announcing massive layoffs amid AI restructuring.
Clariant shares have also slumped after the Swiss specialty chemicals company reported a lower-than-expected adjusted core profit for the first quarter.
Contract drug manufacturer Lonza has also declined despite delivering strong first-quarter performance and confirming its 2026 outlook.
British Airways owner IAG has also moved sharply lower after it warned of lower annual profit.
Meanwhile, German chemicals company Evonik has moved higher after its first quarter adjusted profit topped expectations.
U.S. Economic News
A closely watched report released by the Labor Department on Friday showed employment in the U.S. increased by much more than expected in the month of April.
At 10 am ET, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of May. The consumer sentiment index is expected to edge down to 49.3 in May from 49.8 in April.
Federal Reserve Vice Chair for Supervision Michelle Bowman, Fed Governor Christopher Waller, Chicago Fed President Austan Goolsbee and San Francisco Fed President Mary Daly are due to participate in a policy panel before the Hoover Institution Monetary Policy Conference at 7:30 pm ET.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.