Stock futures drop 1% as Israel carries out operation in Iran: Live updates

Stock futures plunged Thursday evening as conflict reignited between Israel and Iran.

A U.S. official told NBC News that Israel is conducting an operation in Iran. Earlier, Iran's Fars news agency reported explosions were heard near the airport at the country's central Isfahan city, but the reason was unknown. Oil prices spiked more than 3% in Asia morning trading, with global benchmark Brent crude futures topping $90 a barrel.

Futures on the Dow Jones Industrial Average slid 430 points, or 1.15%. S&P 500 futures lost nearly 1.34%, and Nasdaq 100 futures were down 1.62%.

Netflix shares fell more than 4% in extended trading even after the streamer reported quarterly earnings that beat on the top and bottom line. Netflix's subscribers jumped 16% from the previous year, but it said it would no longer report paid memberships starting in 2025.

The S&P 500 is heading for its worst week in almost six months. The S&P 500 has fallen for five sessions in a row, bringing its week-to-date losses to 2.2%. It would be the large-cap benchmark's third straight negative week and its biggest losing week since Oct. 27, 2023. The S&P 500 is now 4.8% off its 52-week high.

The market pullback has been largely driven by tempered expectations for a rate cut soon. Economists and strategists now see the Fed waiting until at least September to lower rates and are increasingly entertaining the possibility of no reductions at all this year.

Minneapolis Fed President Neel Kashkari, who's not voting on rate decisions this year, told Fox News Thursday that the central bank needs to be patient as long as it takes before cutting rates and the first move may not take place until 2025.

"The stock market's biggest worry right now is inflation, which is re-accelerating and throwing cold water on the idea of any rate cuts in 2024, let alone one or two," said Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management.

The blue-chip Dow and the tech-heavy Nasdaq Composite are also poised for a losing week, falling 0.6% and 3.6% so far, respectively. The Nasdaq is on pace for its fourth straight down week, the longest weekly losing streak since December 2022.

Companies expected to report quarterly results on Friday morning include consumer products giant Procter & Gamble, oilfield services name SLB and financial services firm American Express.