U.S. stock futures edge higher as traders monitor U.S.-Iran tensions and await April jobs report

U.S. stock futures rose early Friday, May 7, 2026, as investors watched developments between the United States and Iran and looked ahead to the release of April’s U.S. jobs report.

Futures tied to the S&P 500 gained about 0.17%, Nasdaq 100 futures rose roughly 0.25%, and Dow Jones Industrial Average futures added 62 points, or about 0.12%.

Oil jumps asourceser exchange of fire in Strait of Hormuz

Oil prices climbed in extended trading, with West Texas Intermediate crude futures up 2% asourceser U.S. and Iranian forces exchanged fire in the Strait of Hormuz. U.S. Central Command said U.S. forces “intercepted unprovoked Iranian attacks and responded with self-defense strikes” as three U.S. Navy destroyers transited the waterway.

The geopolitical backdrop helped pressure equities in the prior session. On Thursday, the S&P 500 fell 0.38% and the Nasdaq Composite slipped 0.13% as both pulled back from record highs. The Dow dropped 313.62 points, or 0.63%.

Payrolls report in focus

Investors are also awaiting April’s unemployment rate and nonfarm payrolls data. Dow Jones estimates show economists expect job gains of 55,000 and the jobless rate to hold steady at 4.3%.

Despite the latest geopolitical concerns, a strong earnings season has supported risk appetite, leaving all three major averages on track to finish the week higher. The Nasdaq is on pace for a 2.8% weekly gain, the S&P 500 is on track to rise 1.5%, and the Dow is up about 0.2% for the week.