U.S. stock futures tumbled early Friday after Israel launched a wave of airstrikes on Iran, pushing energy prices higher and adding another complication at a time of heightened geopolitical tensions.
Futures tied to the Dow Jones Industrial Average fell 464 points, or 1%. S&P 500 futures dropped roughly 0.9%, while Nasdaq 100 futures lost 1.1%.
The market drop happened as Israel’s defense minister Israel Katz declared a special state of emergency following an Israeli attack on Iran. Two U.S. officials said that there is no U.S. involvement or assistance, according to NBC News.
Brent crude futures and West Texas Intermediate crude futures both surged more than 8%. WTI crude oil neared $74 a barrel.
Along with the moves in energy prices, the dollar also rallied and gold accelerated more than 1% amid a safe-haven bid from investors.
“The directional reaction in markets is predictable (oil is spiking while stocks get hit), although the mood this morning (so far) is quite calm, thanks in large part to the extremely degraded nature of Iran’s military (which limits Tehran’s ability to wage an aggressive response, at least a direct one) and the recent production hikes from OPEC+,” wrote Adam Crisafulli of Vital Knowledge in a note.
President Donald Trump, in a morning post on his social media site Truth Social, warned Iran to come to the negotiating table.
“There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end. Iran must make a deal, before there is nothing left, and save what was once known as the Iranian Empire,” Trump wrote. “No more death, no more destruction, JUST DO IT, BEFORE IT IS TOO LATE.”
Nvidia, Tesla and other stocks that have lead the market’s comeback from the April lows dropped in premarket trading as investors shed risk.
Oil and defense stocks were higher. Exxon and Chevron added nearly 3% apiece in early trading. Lockheed Martin and RTX Corp were up more than 4% respectively.
Stocks were on track for gains on the week before Friday’s sell-off. Heading into the session, the S&P was up nearly 0.8% for the week and less than 2% from an all-time high.
On the economic front, investors will be waiting for the preliminary June reading of the University of Michigan’s consumer sentiment report.
Defense stocks surge amid escalating Iran-Israel tensions
— Sean Conlon
Trump urges Iran to make deal after Israel attacks
President Donald Trump said on Friday that “Iran must make a deal, before there is nothing left.”
Speaking on his Truth Social platform the president added, “There is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end.”
Israel’s wave of airstrikes at Iran targeted Iran’s nuclear program along with senior military officials.
As of 6:37 a.m. ET, WTI crude oil was up nearly 9% to above $74 a barrel. Dow futures were off by about 500 points.
—John Melloy
U.S. defense stocks rise after Israeli attack
U.S. aerospace and defense stocks gained ground in the wake of Israel’s attack on Iran. The White House said it was informed of the offensive, but did not participate.
The U.S. is a close ally of Israel and historically a large supplier of weapons to the Jewish state.
Lockheed Martin was up 4.64% in premarket trading by 4:53 a.m. ET, with the RTX Corporation rising by 5.02% and Northrop Grumman adding 1.77%.
— Ruxandra Iordache
Iran launches 100 drones at Israel in response to missile attack as markets reel
Iran launched more than 100 drones toward Israeli territory Friday morning after Israel’s overnight missile strike on the country killed at least three of its senior military leaders.
“We can now confirm that the Chief of staff of the Iranian Armed Forces, Commander of the IRGC and the Commander of Iran’s Emergency Command were all eliminated in the Israeli strikes across Iran,” Israel Defense Forces spokesperson Effie Defrin said.
“Iran launched approximately 100 UAVs towards Israeli territory, which we are working to intercept.”
— Natasha Turak
Asia-Pacific markets fall as Israel conducts military strikes on Iran; oil prices soar
Asia-Pacific markets fell Friday as Israel conducted a military strike on Iran, targeting its nuclear program, while Iran vowed to retaliate.
Japan’s benchmark Nikkei 225 pared earlier losses to end the day 0.89% lower at 37,834.25 while the Topix fell 0.95% to 2,756.47.
South Korea’s Kospi dropped 0.87% to close at 2,894.62 while the small-cap Kosdaq declined 2.61% to 768.86.
Australia’s S&P/ASX 200 ended the day 0.21% lower at 8,547.40.
Hong Kong’s Hang Seng index fell 0.59% to 23,892.56 while mainland China’s CSI 300 ended the day 0.72% lower at 3,864.18.
India’s Nifty 50 lost 0.64%, while the BSE Sensex was down 0.79% as of 1.45 p.m. Indian Standard time.
—Amala Balakrishner
Dollar rises as investors seek safety
The dollar index — which measures the U.S. dollar against a basket of major rivals — was up 0.2% by 4 a.m. ET on Friday, as investors fled risk-on assets and sought safety.
Loading chart…
European stocks open lower
It’s about 20 minutes since the opening bell, and European shares are selling off as investors react to Israel’s strikes on Iran in the early hours of Friday morning.
The pan-European Stoxx 600 was last seen trading 1% lower, with all sectors except oil and gas in negative territory.
Oil prices surged on Friday after the escalation in the Middle East sparked concerns about supply.
Germany’s DAX was down 1.4% in early trade, while the French CAC 40 was 1.1% lower and London’s FTSE 100 — coming off of a record high — was down 0.5%.
— Chloe Taylor
Safe haven rush begins after Israel strikes Iran
Investors fled to safe-haven assets Friday after a series of Israeli airstrikes on Iran marked a major escalation of conflict in the region.
The scale of the attack, which Israel said was targeting Iran’s nuclear program, took markets by surprise, pushing up prices of assets thought to offer protection in times of heightened volatility.
“The news has led to significant fears about an escalation and a wider regional conflict,” Deutsche Bank strategists said in a note early Friday. “The effects of the attack have cascaded across global markets, with a strong risk-off move for several asset classes.”
— Katrina Bishop
Stock futures fall after Israel’s defense minister declares ‘special situation’ following attack on Iran
Stock futures tumble on Israel’s defense minister declares ‘special situation’ after attack on Iran.
U.S. stock futures turned lower on Thursday night after Israel’s defense minister Israel Katz declared a special state of emergency after an Israeli attack on Iran.
Dow futures tumbled 478 points, or 1.1%. S&P 500 futures fell 1.3%, and Nasdaq 100 futures lost 1.5%.
Brent crude futures also surged more than 5%.
Read more about the unfolding situation in the Middle East here.
—Darla Mercado
Individual investors are the least bearish since late January, AAII weekly survey shows
Only about a third of individual investors (33.6%) are bearish about the outlook for stocks over the next six months, the fewest since a January 22 reading of 29.4%, according to the latest weekly survey of sentiment by the American Association of Individual Investors.
Last week, 41.4% of Main Street investors characterized themselves as pessimistic about the short-term outlook for stocks. The historical average is 31%.
Bullishness, on the other hand, only rose to a three-week high of 36.7%, up from 32.7% last week and still below an historical average of 37.5%, the AAII said.
More investors described themselves as neutral about the outlook for stocks, 29.7%, than at any time since Feb. 19 — the same day the S&P 500 closed at an all-time high.
— Scott Schnipper
Big sector winners and losers this week
Energy has emerged as the top sector in the S&P 500 this week, toting a 3.9% advance through Thursday’s close. Top performers within the sector include ConocoPhillips, up about 8.6%; APA Corp, up 7.8%; and Halliburton with a 7.1% advance.
The industrials sector was at the bottom this week, on pace for a 0.7% decline. Top decliners in the space include United Airlines, off more than 8%, and GE Aerospace, which is on track for a 6.1% slide.
—Darla Mercado
Stock futures open little changed Thursday night
Stock futures were near the flatline on Thursday evening.
The S&P 500 futures opened 0.1% lower, as did the Nasdaq 100 futures. Dow futures lost 58 points, or 0.1%.
—Darla Mercado
