U.S. Stocks Likely To Extend Yesterday's Pullback In Early Trading

(RTTNews) - Following the pullback seen in the previous session, stocks are likely to see further downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.9 percent.

Technology stocks are likely to lead the way lower once again, as reflected by the 1.9 percent slump by the tech-heavy Nasdaq 100 futures.

A steep drop by shares of Netflix (NFLX) is likely to weigh on the tech sector, with the streaming giant plunging by 11.3 percent in pre-market trading.

Netflix is under pressure after reporting second quarter results roughly in line with estimates but providing disappointing third quarter guidance.

Concerns about valuations may also weigh on tech stocks ahead of earnings news from tech giants Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT) and Meta Platforms (META) next week.

The downward momentum on Wall Street also comes amid a sharp increase by the price of crude oil, with U.S. crude oil futures surging back above $80 a barrel amid concerns about the escalating conflict in the Middle East.

Tehran launched strikes against several countries across the Gulf and wider region after the U.S. launched a wave of strikes against Iran for the sixth night in a row over control of the Strait of Hormuz.

Shortly before the start of trading, the Federal Reserve is scheduled to release its report on industrial production in the month of June. Industrial production is expected to rise by 0.2 percent in June after inching up by 0.1 percent in May.

The University of Michigan is also due to release its preliminary report on consumer sentiment in the month of July not long after the open. The consumer sentiment index is expected to climb to 51.3 in July from 49.5 in June.

Stocks moved mostly lower during trading on Thursday, giving back ground following the upward move seen over the two previous sessions. The major averages all moved to the downside, with the Nasdaq showing a significant decline.

The major averages regained some ground going into end of the day but still closed in negative territory. The Nasdaq tumbled 387.28 points or 1.5 percent to 25,881.95, the S&P 500 slid 38.63 points or 0.5 percent to 7,533.77 and the Dow dipped 105.67 points or 0.2 percent to 52,552.97.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index plummeted by 4 percent, while China's Shanghai Composite Index plunged by 3.1 percent.

Most European stocks have also moved to the downside on the day. The French CAC 40 Index is down by 0.7 percent and the German DAX Index is down by 0.6 percent, although the U.K.'s FTSE 100 Index is nearly unchanged.

In commodities trading, crude oil futures are surging $2.02 to $80.97 a barrel after sliding $0.65 to $78.95 a barrel on Thursday. Meanwhile, after tumbling $59.70 to $3,992.10 an ounce in the previous session, gold futures are slipping $8.60 to $3,983.50 an ounce.

On the currency front, the U.S. dollar is trading at 162.39 yen versus the 162.38 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1428 compared to yesterday's $1.441.