Global Markets Wobble as Oil Prices Surge, Geopolitical Tensions Mount, and Key Tech Earnings Disappoint

S&P 500 futures displayed a mixed performance early Friday, as traders navigated the aftermath of a challenging session primarily driven by a sharp rise in oil prices and less-than-stellar earnings reports from major technology companies. Investors are looking to regain composure following a volatile Thursday.

Traders work at the New York Stock Exchange on May 13, 2026.

NYSE

S&P 500 futures edged 0.13% lower, while Nasdaq-100 futures saw a more significant drop of 0.44%. Dow Jones Industrial Average futures remained largely flat. This follows a tough trading day where the Dow plummeted over 500 points (about 1%), marking its fifth negative session in six. Both the S&P 500 and Nasdaq experienced their worst single-day declines since June 23, falling 1.2% and 2.2%, respectively.

Asian markets also felt the pressure, with Japan's Nikkei 225 retreating 2.79% and the Topix slipping 1%. South Korea's Kospi plunged over 5%, and the small-cap Kosdaq fell 4.95%. Australia's S&P/ASX 200 benchmark was 0.95% lower. Hong Kong's Hang Seng Index dropped 1.33%, and mainland China's CSI 300 declined 1.4%.

A major catalyst for the market's unease was the dramatic spike in oil prices. Brent crude futures surged past $100 per barrel for the first time since late May, climbing approximately 7% on Thursday. West Texas Intermediate futures also advanced around 6% after reports surfaced that two Saudi oil tankers were struck in the Red Sea. Oil prices maintained slight gains in Friday's Asia trading. Adam Turnquist, chief technical strategist at LPL Financial, noted that with sentiment and positioning already bearish, even a modest shift in supply expectations can trigger a significant price reaction.

Adding to market anxieties were disappointing quarterly results from tech giants. Tesla shares tumbled nearly 15%, marking its worst day since March 10, 2025, after reporting an earnings miss for the second quarter. Alphabet experienced a 7% loss, its largest daily decline since May 7, 2025, after increasing its full-year guidance for capital expenditures. These corporate results further weighed on the broader market.

These Thursday movements set the major U.S. averages on track for weekly declines, with the Dow and S&P 500 shedding 0.8% and 0.7%, respectively. The Nasdaq underperformed, losing 1.5% for the week.

SAP shares rise in pre-market trading after cloud order backlog soars

Shares of German multinational software firm SAP advanced 3% in pre-market trading after the company announced a 27% year-over-year jump in its cloud order backlog, reaching 22.9 billion euros ($26.1 billion) in the second quarter. Frankfurt-listed SAP reported revenues of 9.88 billion euros, surpassing LSEG's forecasts of 9.86 billion euros.

Europe’s stock markets set to open Friday in mixed territory

European stock markets anticipate a mixed start to the final trading day of the week. The U.K.'s FTSE 100 is projected to open 0.17% lower, while France's CAC 40 is expected to rise by 0.22%. Germany's DAX is also forecasted to begin the session 0.19% higher. Italy's FTSE MIB was down 0.21% ahead of the opening bell, with Stoxx 50 futures hovering just below the flatline.

Treasury yields flat after oil spike, AI spending sent them higher in prior session

U.S. Treasury yields held flat during Friday's Asia trading, following a significant increase in the previous session. The 10-year Treasury yield was steady at 4.705%, and the 30-year yield was also little changed at 5.175%. Yields had climbed Thursday as Brent crude's rise above $100 per barrel sparked inflation fears, while mild weekly jobless claims data further dampened hopes of a rate cut. Jose Torres, senior economist at Interactive Brokers, noted that elevated oil prices and the prospects of heavier AI spending are pressuring the bond market, with substantial credit demand for technological ambitions adding to upward pressure on rates.

Brent crude holds near $100 as Houthi tanker attacks deepen supply concerns

Oil prices saw slight gains in Friday's Asia hours, maintaining momentum after surging Thursday due to Houthi attacks on tankers in the Red Sea. Brent crude futures for September delivery were up 0.26% at $100.26 a barrel, while West Texas Intermediate crude remained largely unchanged at $92.26 a barrel. Brent futures had initially crossed the $100 mark for the first time since May 26 on Thursday, closing at $100.69 with a nearly 7% gain. Benjamin Jones, global head of research at Invesco, highlighted that the latest Houthi attacks have heightened the risk of disruptions to key export routes, with markets fearing reduced traffic in the Red Sea. He anticipates crude prices will remain 'near or above $100 per barrel over the coming months' if shipping disruptions and tensions persist.

Singapore's sovereign wealth fund GIC reports lowest 20-year annualized return in six years

Singapore's sovereign wealth fund, GIC, reported its 20-year annualized real rate of return fell for the third consecutive year to 3.4% in FY2025/2026, a six-year low. This decline occurred amid what GIC termed 'profound uncertainty' as it adopted a more cautious, resilience-focused approach to risk. GIC utilizes a rolling 20-year metric as its primary performance indicator.

Korea Exchange briefly halts Kospi trading, as stocks tank

The Korea Exchange implemented a sell-side sidecar on the Kospi, temporarily suspending program trading, after South Korean stocks plunged. A sell-side sidecar is activated when the Kospi 200 futures index drops 5% or more for at least one minute, resulting in a 5-minute trading halt.

Mainland China and Hong Kong markets open lower

Mainland China and Hong Kong stock benchmarks opened lower on Friday, mirroring broad declines across Asian markets. Concerns over escalating oil prices, Middle East tensions, and new tariffs announced by U.S. President Donald Trump contributed to the negative sentiment. Hong Kong's Hang Seng index was down 0.88%, while mainland China's CSI 300 was 0.96% lower.

Japan core inflation rate in June creeps up from 4-year low as higher oil prices bite

Japan's core inflation rate rose to 1.6% in June, according to data released Friday, marking the first increase since March. This aligns with Reuters economists' expectations and signals that higher oil prices are starting to impact the broader economy. Headline inflation also climbed to 1.7% from May's 1.5%, though the 'core-core' rate (excluding fresh food and energy) dipped to 1.7%, its lowest since August 2022. While government subsidies have mitigated the impact of energy price jumps for consumers, businesses face sharply rising costs, with the producer price index for June hitting 7.1%, its highest since March 2023.

SK Hynix shares drop over 3% as tech stocks slide; SoftBank sinks over 7%

SK Hynix shares declined 3.5% in Seoul on Friday, contributing to a broader slide in Asia's tech sector. This followed a Bloomberg report indicating the chipmaker had exhausted its 2.5% cap on converting local shares into U.S. American Depositary Receipts (ADRs) during its recent $26.5 billion U.S. offering. This restriction has halted arbitrage trading, which previously allowed investors to capitalize on a significant price gap, where SK Hynix's U.S.-listed ADRs traded at a premium of up to 51% over its Seoul shares. Other regional tech giants also suffered, with Samsung shares down nearly 4%, SoftBank Group falling 7.5%, Japan's Advantest down over 6%, Tokyo Electron dropping 4.5%, and Renesas falling 4%.

Japanese and South Korean stocks drop 1% on higher oil, Mideast tensions

Asia-Pacific markets traded lower early Friday, with investors on edge due to rising oil prices and heightened Iran-U.S. tensions. Japan's Nikkei 225 fell 1.2% and the Topix slipped 1%. South Korea's Kospi dropped 1.8% at open, and the small-cap Kosdaq declined 2.17%. Australia's benchmark S&P/ASX 200 was 0.47% lower.

Asia-Pacific markets set to open sharply lower on higher oil, Mideast tensions

Asia-Pacific markets were poised for a lower opening Friday, as increasing oil prices and Middle East tensions dampened investor sentiment. Adding to the unease, U.S. President Donald Trump was set to impose fresh global tariffs. Japan's Nikkei 225 was projected to decline. Futures for Hong Kong's Hang Seng index were also lower. In Australia, futures for S&P/ASX 200 last traded lower than the index's previous close.

A notice in the U.S. Federal Register confirmed new tariffs would be imposed by the Trump administration just after midnight ET Friday. These duties, targeting dozens of countries over alleged forced-labor violations, will range between 10% and 12.5% and effectively replace Trump's expiring temporary 10% global tariffs. The tariffs will apply to 60 trade partners, covering 99.4% of U.S. trade, according to the Office of the U.S. Trade Representative.

U.S. to impose 'sweeping' new tariffs on 60 countries

The Trump administration announced it would impose new tariffs on 60 countries, effective just after midnight ET, citing alleged forced-labor violations. These duties, set between 10% and 12.5%, will supersede President Donald Trump's temporary 10% global tariffs that are set to expire concurrently. The tariffs will impact 60 trade partners and encompass over 99% of U.S. trade. The Office of the U.S. Trade Representative did not provide an estimate of the revenue these new tariffs are expected to generate.

Intel, Boston Beer among stocks making moves after the bell

Several stocks made notable moves after the bell. Intel, the chipmaker, surged 9% following its report of the sharpest quarterly revenue growth in nearly 15 years, with its top line reaching $16.1 billion for Q2, a 25% increase year-over-year. Adjusted earnings per share of 42 cents also surpassed analyst expectations. Boston Beer, known for Twisted Tea, added 2% as its second-quarter revenue of $568.3 million narrowly beat the FactSet consensus. The company also reaffirmed its full-year earnings guidance of $8.50 to $10.50 per share.

Stock futures open little changed

Stock futures opened with minimal changes. Dow Jones Industrial Average futures traded 6 points lower, S&P 500 futures saw a slight rise of 0.1%, and Nasdaq-100 futures advanced 0.2%.