Traders work at the New York Stock Exchange on May 7, 2026.

NYSE

U.S. stock futures rose early Friday as traders eyed developments between the U.S. and Iran. They also looked ahead to the release of April's jobs report.

S&P 500 futures and Nasdaq 100 futures were up about 0.4% and 0.6%, respectively. Futures tied to the Dow Jones Industrial Average rose 123 points, or 0.3%.

Oil prices were marginally higher in extended trading, with West Texas Intermediate crude futures gaining 0.2%, after the U.S. and Iran exchanged fire in the Strait of Hormuz. Each side claimed the other struck first. U.S. Central Command said that military forces "intercepted unprovoked Iranian attacks and responded with self-defense strikes" as a trio of U.S. Navy destroyers transited the waterway.

In a Truth Social post Thursday night, President Donald Trump said there was "no damage done to the three Destroyers, but great damage done to the Iranian attackers." He also reportedly said that the ceasefire is still in effect, saying the strikes against Iranian targets were "just a love tap."

On Thursday, the S&P 500 and Nasdaq Composite hit fresh record highs before retreating as investors continued to monitor the latest developments in the Middle East.

The moves came after a senior Iranian official said that the country would not allow the U.S. to reopen the Strait of Hormuz passageway with an "unrealistic plan," The Wall Street Journal reported Thursday, citing Iran's state-owned Press TV. The official added that Iran would not let the U.S. leave the conflict without paying reparations for the damage it has inflicted.

On Friday morning, investors will look forward to the release of April's unemployment rate and payrolls data. Dow Jones estimates show that economists are expecting job gains of just 55,000 last month, and they anticipate the U.S. jobless rate will hold steady at 4.3%.

Stocks have been boosted higher in recent sessions by a strong earnings season, with all three major averages expected to end the week higher. Strong tech earnings have put the Nasdaq on pace to climb 2.8% on the week. The S&P 500 is on track for a rise of 1.5%, while the Dow Jones has lagged with a week-to-date gain of just 0.2%. Going forward, PNC Asset Management chief investment strategist Yung-Yu Ma expects this strong earnings momentum to continue.

"It is important to note that the gains are very broad based," he said on CNBC's "The Exchange" on Thursday afternoon. "If you look out to Q2, Q3 and Q4, the market and analysts are still expecting about 20% or higher earnings growth on a year-over-year basis in those subsequent quarters. So we're not seeing the momentum expected to let up. There is dispersion, for sure, but the momentum is going to be quite strong here."

—CNBC's Kevin Breuninger contributed reporting.

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