U.S. stock futures were a mixed bag on Friday, with the Dow Jones index edging higher while the Nasdaq 100 and S&P 500 slipped, following a mixed close on Thursday. The action comes as President Donald Trump floated the possibility of a face-to-face meeting with Iran's supreme leader, and as traders digest a slew of earnings reports.

After an Oval Office announcement on coal policy, President Trump said he would consider meeting Iranian Supreme Leader Ayatollah Mojtaba Khamenei if diplomatic talks progress. "If we make a deal, it's possible that I would meet," Trump said. "I'd be okay with that." His comments come amid mixed signals from negotiations as the U.S.-Iran conflict enters its fourth month under a fragile ceasefire.

Meanwhile, the 10-year Treasury bond yielded 4.46%, and the two-year bond was at 4.03%. According to the CME Group's FedWatch tool, markets are pricing a 96.4% likelihood that the Federal Reserve will leave interest rates unchanged at its June meeting.

The SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which track the S&P 500 and Nasdaq 100, respectively, were lower in premarket on Friday. SPY was down 0.47% at $753.51, while QQQ declined by 1.04% to $732.91.

Stocks In Focus

Lululemon Athletica

• Lululemon Athletica Inc. (LULU) dropped 11.82% in premarket on Friday after the company reported first-quarter revenue ahead of expectations but missed earnings estimates and issued disappointing guidance.

• Market data indicates that LULU maintains a weak price trend in the long, medium, and short terms, with a solid value score.

Docusign

• Docusign Inc. (DOCU) tumbled 4.73% after reporting in-line guidance, despite first-quarter fiscal 2027 results that came in higher than expected.

• Market data indicates that DOCU maintains a strong price trend in the short and medium terms but a weak trend in the long term, with a good growth score.

Samsara

• Samsara Inc. (IOT) declined by 5.14% despite beating first-quarter earnings, as its revenue guidance for the second quarter was below Wall Street's expectations.

• Market data indicates that IOT maintains a strong price trend in the long, short, and medium terms.

Keel Infrastructure

• Keel Infrastructure Corp. (KEEL) fell by 8.94% after announcing a proposed offering of $350 million of convertible senior notes.

• Market data indicates that KEEL maintains a strong price trend in the long, medium, and short terms.

Merlin

• Merlin Inc. (MRLN) jumped 24.97% following the successful completion of the Critical Design Review (CDR) for the company's C-130J autonomy program, a joint development initiative with the U.S. Special Operations Command (USSOCOM).

• Market data indicates that MRLN maintains a weak price trend in the short, long, and medium terms.

Cues From Last Session

Sectors on the S&P 500 closed mostly higher on Thursday, with health care, financials, and communication services stocks recording the biggest gains, while information technology and consumer staples stocks closed lower.

Insights From Analysts

Scott Wren, Senior Global Market Strategist at Wells Fargo Investment Institute, warned that a "performance roller coaster ride" is underway across the U.S. stock market and economy. Triggered by U.S. military action against Iran, extreme volatility has gripped stocks, oil prices, and Treasury yields.

Wren highlights that while the S&P 500 continuously hits record highs, intense "churn" persists beneath the surface. A prime example is the Information Technology sector, which surged 45.2% in the second quarter after a poor first-quarter showing.

On the economic front, supply restrictions threaten to worsen global crude shortages by summer. Consequently, Wren cautions that "the longer the diplomatic impasse is drawn out over the next month or two, the more persistent U.S. and global inflation should be."

Failing negotiations could also push the 10-year Treasury yield significantly higher than its current 4.45%.

Even if a peace agreement is reached immediately, Wren believes "inflation figures to be part of the outlook for the rest of the year." To navigate this environment, he advises investors to target sectors capable of passing higher input costs to customers, favoring Utilities, Industrials, Financials, and Aerospace & Defense.

Upcoming Economic Data

Here's what investors will be keeping an eye on Friday.

• U.S. employment and unemployment rate for May, along with the month's hourly wages data, will all be out by 8:30 a.m. ET.

• April's consumer credit report will be released by 3:00 p.m. ET.

• On Saturday, Federal Reserve governor Michael Barr will speak at 12:00 p.m. ET.

Commodities, Crypto, And Global Equity Markets

Crude oil futures were trading lower in the early New York session by 0.27% to hover around $92.79 per barrel.

Gold Spot US Dollar fell 0.28% to hover around $4,463.03 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.17% lower at the 99.2430 level.

Meanwhile, Bitcoin (BTC) was trading 1.71% lower at $62,433.41 per coin, as per the last 24 hours.

Asian markets closed lower on Friday, as Hong Kong's Hang Seng, India's Nifty 50, Japan's Nikkei 225, Australia's ASX 200, South Korea's Kospi, and China's CSI 300 indices fell. European markets were mixed in early trade.