Dow futures plunge 300 points: 5 things to know before market opens

• Dow futures fell 300 points (0.6%), S&P 500 futures dropped 1%, and Nasdaq 100 futures declined 1.4%, reversing Thursday's record closing highs
• Brent crude jumped above $108 after the Strait of Hormuz closure threatened global oil supply, reversing earlier weekly lows of $102.19
• The 10-year Treasury yield reached 4.54% as investors priced in tighter monetary policy due to inflation concerns stemming from the Iran conflict

Market Summary: US Futures Plunge on Iran War Impact

Key Market Movements:

US equity futures tumbled Friday, with Dow futures down 300 points (-0.6%), S&P 500 futures declining 1%, and Nasdaq 100 futures dropping 1.4%. The selloff erased Thursday's record closing highs across major indices.

Primary Catalysts:

The 10-year Treasury yield surged to 4.54%, reaching its highest level since early June 2025, as the Iran war triggered renewed inflation concerns and tighter monetary policy expectations.

Brent crude spiked above $108 per barrel following the closure of the Strait of Hormuz, a critical global oil shipping route. This marked a sharp reversal from earlier in the week when Brent hit $102.19—down 5.6% and the year's lowest—on expectations of a brief conflict.

Sector Impact:

Technology stocks faced the heaviest pressure from rising borrowing costs, with the Nasdaq leading declines despite Applied Materials issuing above-consensus Q3 guidance. Higher energy prices and elevated yields threaten valuations for high-growth tech companies, particularly those benefiting from AI enthusiasm.

Energy markets experienced extreme volatility as supply disruption fears intensified throughout the week.

Geopolitical Developments:

A summit between major powers concluded Friday without significant progress on trade or key diplomatic issues, removing a potential positive catalyst and adding pressure to risk assets.

Market Implications:

The combination of surging oil prices and climbing bond yields creates a double headwind for equities, particularly growth-oriented sectors. Investors are recalibrating expectations for both inflation trajectories and Federal Reserve policy, with tighter monetary conditions now priced more aggressively into markets heading into the weekend.