Dow futures fall 400 points after Israel strikes Iran, spiking oil prices: Live updates
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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 423 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.
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