Stocks Open Lower As Iran War Uncertainty Deepens, Nasdaq Correction Looms

U.S. stock futures traded lower on Friday as investors followed the latest developments in the Iran conflict, while crude prices moved higher on renewed uncertainty over energy supplies. Dow Jones Industrial Average futures fell 192 points, or 0.4%, while S&P 500 futures and Nasdaq 100 futures slipped 0.4% and 0.6%, respectively.

The weaker tone came after a sharp selloff in the prior session, when the Nasdaq Composite entered correction territory and the S&P 500 and Dow also lost ground. Market sentiment remained fragile as traders weighed geopolitical risk, higher oil prices, and signs that the conflict could stay unresolved for longer than expected.

Market pressure builds as volatility rises

The latest move in futures followed a volatile stretch for Wall Street that has left major indexes under pressure. The Nasdaq Composite has fallen more than 10% from its October peak, while the Dow is now close to correction territory after dropping more than 9% from its record high.

The S&P 500 remains about 7% below its all-time high, reflecting broad caution across large-cap stocks. That pressure intensified after Thursday’s decline, when the S&P 500 lost 1.74%, the Nasdaq fell 2.38%, and the Dow dropped more than 460 points, or 1.01%.

Iran conflict stays at the center of trading

President Donald Trump said he would extend a pause on attacks against Iran’s energy facilities until April 6, after an earlier deadline was set to expire on Friday. In a Truth Social post, Trump said, “Talks are ongoing and, despite erroneous statements to the contrary by the Fake News Media, and others, they are going very well.”

The announcement signaled that the administration still wants to avoid further escalation, but investors remained cautious. Iran’s foreign minister reportedly told state media that Tehran had no intention of holding talks with the U.S., even though officials were said to be reviewing an American proposal to end the war.

Why oil matters for stocks right now

Rising crude prices are adding another layer of pressure to the market. Higher energy costs can raise inflation expectations, squeeze consumer spending, and hurt sectors that depend on lower fuel expenses.

1. Higher oil prices can lift transportation and production costs.
2. Geopolitical risk can push investors toward safer assets.
3. Energy uncertainty can slow appetite for riskier growth stocks.
4. A prolonged conflict can keep volatility elevated across major indexes.

A resolution to the conflict would likely support equities, especially after markets have already been weakened by weeks of falling confidence. Since U.S. and Israel attacked Iran’s energy infrastructure on Feb. 28, stocks have struggled to regain momentum.

Analysts warn that uncertainty may keep stocks under pressure

Adam Parker, founder of Trivariate Research, said on CNBC’s “Closing Bell” that the market could remain weak until investors get more clarity. “I think we’re headed lower in the medium term until we get some more certainty,” Parker said. “You got to be cautious here and not take a ton of risk in the near term.”

That cautious view matched the broader market tone, where traders appeared unwilling to add exposure ahead of a still-fluid geopolitical backdrop. The possibility of additional U.S. troop deployments in the Middle East, as reported by The Wall Street Journal, also added to investor concern.

Major index snapshot

The week also started to look weaker overall by Thursday’s close, with the S&P 500 down 0.5% for the week and the Nasdaq Composite down 1.1%. The Dow was the only major benchmark on track for a weekly gain, up 0.8%, but that advantage could narrow if pressure in futures carries into the session.