S&P 500 slips toward fourth straight weekly loss as oil jumps

U.S. stock futures moved slightly higher in after-hours trade, but the S&P 500 closed Thursday having lost ground for a second consecutive session as a jump in oil prices pushed the index toward its fourth straight weekly decline. Investors cited heightened energy-driven inflation concerns and supply worries as the main headwinds.

During Thursday’s session the S&P 500 dropped roughly 0.6–0.7%, with the Nasdaq registering a similar pullback; energy benchmarks—WTI and Brent—saw notable gains amid reports of regional supply disruptions. Market commentators pointed to the sharp move in crude as a catalyst for risk-off positioning, with cyclical sectors sensitive to fuel costs under particular pressure while energy stocks outperformed.

Although futures showed modest gains overnight, Treasury yields and currency moves complicated the picture: rising yields can weigh on high-multiple growth names, while a stronger dollar would further pressure commodity-sensitive revenues. Traders are also parsing central bank messaging and economic data for clues on the timing and scale of any future Federal Reserve policy adjustments, as shifts in Fed pricing materially affect equities.

The broader economic context centers on how a sustained rise in energy costs could feed into headline inflation and squeeze consumer discretionary spending. Several market reports connected the crude rally to escalating geopolitical tensions in key shipping lanes and producing regions, amplifying the risk premium priced into oil. That dynamic has raised questions about how persistent the inflation impulse may be and what it implies for corporate margins and profit forecasts.

Analysts warn that near-term volatility is likely to remain elevated and that oil’s direction will be a primary market driver. Some strategists see selective opportunities within energy and value sectors, while others recommend defensive tilts until clarity on inflation trajectory and central bank guidance improves. Looking ahead, traders will focus on upcoming macro prints and any new developments in energy supply dynamics to reassess risk exposures.