Stock Market News: Dow, S&P 500 Set to Open Down After Israel Attacks Iran

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Though stock futures fell on Friday following Israel’s retaliatory drone strike against Iran, the three major indexes were holding their ground at the market open. Traders are hopeful that the scale of the attack won’t escalate geopolitical tensions.

The Dow Jones Industrial Average was up 88 points, or 0.2%. The S&P 500 was flat. The Nasdaq Composite was down 0.3%.

Fears about how Israel would respond to Iran’s missile and drone attacks have weighed on markets this week. The Wall Street Journal reported the strike appeared to be limited to avoid escalation, adding that Iranian state TV and officials downplayed the explosions. Reuters reported that a senior Iranian official told the news agency there were no plans to respond against Israel.

The 2-year Treasury yield was down to 4.984% after hitting 5% on Thursday. The 10-year yield was down to 4.608%.

Andrew Brenner, head of international fixed income at NatAlliance Securities, wrote that futures bounced back and bond yields declined on hopes that Iran would not retaliate.

“So now we are back to the Fed and economic numbers,” Brenner writes.

That could explain why stocks aren’t roaring back to record highs. Worries about whether the Federal Reserve can cut interest rates this year amid hotter-than-expected inflation figures have been trouble enough for markets, even if geopolitical risks fade.

Chicago Federal Reserve President Austan Goolsbee will appear in a moderated Q&A at the Society for Advancing Business Editing and Writing Annual Conference at 10:30 a.m. ET. Brenner notes that central bank officials will enter a blackout period ahead of the April 30 to May 1 Federal Open Market Committee meeting.