Dow, S&P 500, Nasdaq futures slip as Iran and the US ramp up Hormuz aggression

US stock futures edged lower Thursday evening as investors weighed escalating tensions between Washington and Tehran while bracing for a closely watched April employment report.

Futures linked to the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) dipped 0.2%, while Dow futures (YM=F) slipped about 0.1%.

Despite Thursday’s decline, major indexes remain on pace for weekly gains, fueled largely by stronger-than-expected corporate earnings. Technology shares have led the rally, putting the Nasdaq (^IXIC) up nearly 3% for the week, while the S&P 500 (^GSPC) is tracking for a gain of about 1.5%. The Dow (^DJI) has posted more modest advances.

Crude prices moved sharply higher in after-hours trading after military clashes erupted near the Strait of Hormuz, a critical global shipping route. US benchmark West Texas Intermediate (CL=F) crude jumped roughly 2% after both the US and Iran accused one another of initiating attacks in the region.

President Donald Trump posted on Truth Social that US destroyers were unharmed and described the military action against Iranian forces as limited, adding that the ceasefire agreement remains intact.

Markets are now turning attention to Friday’s labor market data, including April nonfarm payrolls and the unemployment rate. Economists surveyed by Bloomberg estimate a median growth of 65,000 while unemployment is projected to remain at 4.3%.

Investors will also be watching another round of earnings Friday morning, with reports expected from Toyota Motor (TM), Sony,(SONY), and Brookfield Asset Management (BAM).