US stock futures traded cautiously on Friday after Wall Street suffered its sharpest decline in a month, as soaring oil prices and disappointing earnings from major technology companies weighed on investor sentiment.

S&P 500 futures were broadly unchanged in early trading, while Nasdaq-100 futures edged 0.26% lower. Dow Jones Industrial Average futures also slipped slightly, indicating a subdued start for US markets.

The sell-off followed a difficult session on Thursday, with the Dow Jones Industrial Average falling more than 500 points, or roughly 1%, marking its fifth decline in the past six trading sessions. The S&P 500 lost 1.2%, while the Nasdaq fell 2.2%, recording their largest single-day losses since late June.

Asian markets mirrored the risk-off mood. Japan's Nikkei 225 dropped 2.79%, while the Topix index declined 1%. South Korea's Kospi fell more than 5%, with the small-cap Kosdaq down 4.95%. Australia's S&P/ASX 200 lost 0.95%, while Hong Kong's Hang Seng Index and mainland China's CSI 300 declined 1.33% and 1.4%, respectively.

Energy markets remained a key driver of sentiment after geopolitical tensions pushed oil prices sharply higher. Brent crude rose above US$100 per barrel for the first time since late May, climbing around 7% during Thursday's session. US West Texas Intermediate crude gained approximately 6%, following reports that two Saudi oil tankers had been struck in the Red Sea. Both benchmarks traded modestly higher during Asian hours on Friday.

Market analysts noted that bearish positioning in the oil market may have amplified the recent rally. Even a relatively small deterioration in supply expectations has been enough to trigger an outsized price move as investors rapidly adjusted their positions.

The technology sector also came under pressure after earnings announcements from two megacap companies disappointed investors. Tesla shares plunged nearly 15% after missing second-quarter earnings expectations, marking their steepest one-day decline since March 2025. Meanwhile, Alphabet fell 7% after raising its full-year capital expenditure guidance, its largest daily loss since May 2025.

With Thursday's declines, all three major US indices are on track to finish the week in negative territory. The Dow and S&P 500 are down 0.8% and 0.7% for the week, respectively, while the Nasdaq has fallen 1.5%, reflecting continued pressure on growth and technology stocks amid rising geopolitical and energy-related concerns.

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