S&P 500 Tries to Recover as Strike Delay Calms Markets

The S&P 500 is attempting to regain some ground on Friday after a sharp 1.74% decline in the previous session, with US equity futures edging higher as markets respond to a temporary easing in geopolitical pressure. The rebound comes after a broad selloff across major indices, with the Dow falling 1.01% and the Nasdaq sliding 2.38%, led by renewed weakness in technology stocks.

Part of the relief followed President Donald Trump’s decision to delay potential strikes on Iranian energy infrastructure by 10 days. The move signalled that negotiations may still be active, helping to reduce the market’s immediate fear of escalation. Trump also said Iran had allowed 10 oil tankers to pass through the Strait of Hormuz, easing concerns over a full disruption to global energy flows. Even so, tensions remain unresolved, with Iran rejecting the US’s 15-point proposal and presenting its own demands, including control over the strait.

While that delay has helped calm markets in the short term, the broader pressure on equities has not disappeared. Treasury yields continued to rise, tightening financial conditions and weighing on valuations, particularly in growth and technology shares. At the same time, higher energy prices are feeding into inflation expectations, reviving concern that markets could face a more difficult mix of slower growth and persistent price pressure.

That combination has sharpened stagflation worries. For equities, it creates pressure from both sides. Higher yields raise the discount rate applied to future earnings, while elevated oil prices threaten margins, consumer demand, and the wider growth outlook. This is one reason the market’s rebound still looks tentative rather than convincing.

From a technical perspective, the S&P 500 remains under pressure despite Friday’s early bounce. The index is trading around 6505 after finding support near 6439, but the broader short-term structure has turned weaker following the rejection from the 7017 high. Price has fallen below all major moving averages, with the 5-day, 10-day, 20-day, and 30-day averages now sloping lower and stacked bearishly. That setup suggests the market is still in a corrective downtrend rather than beginning a clear reversal.

Explore what the latest rebound attempt could mean for the S&P 500 as macro and geopolitical risks remain in focus.