Stocks tumbled 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.
Nvidia and other stocks that have led the market’s comeback from the April lows dropped as investors shed risk.
The market drop happened as Israel’s defense minister Israel Katz declared a special state of emergency following an Israeli attack on Iran.
Iran must make a deal, before there is nothing left, and save what was once known as the Iranian Empire,” Trump wrote.
The S&P is down 0.2% this week, while the 30-stock Dow and Nasdaq have lost 1% and 0.5%, respectively.
Following a barrage of Israeli airstrikes against Iran on Friday, stocks fell sharply, driving up energy prices and creating yet another challenge at a time of elevated geopolitical tensions.
The Dow Jones Industrial Average dropped 1 percent, or 437 points. The Nasdaq Composite fell 0.4 percent, while the SandP 500 fell about 0.3 percent.
Investor risk aversion caused Nvidia and other stocks that spearheaded the market’s recovery from the April lows to decline. Stocks of defense and oil were up. Lockheed Martin saw a roughly 3% increase, while Exxon added over 1%.
Israel Katz, Israel’s defense minister, declared a special state of emergency after an Israeli attack on Iran, which caused the market to plummet. A pair of U. S. According to officials, there is no U. A. participation or support, as reported by NBC News.
Both Brent and West Texas Intermediate crude futures saw increases of about 6%. WTI crude oil was close to $74 per barrel at one point. Demand for gold as a safe haven drove prices up to a level that was almost two months high.
The market’s already substantial collection of concerns is being exacerbated by this conflict, and those concerns aren’t going away. If it continues, the crude price increase will, at the very least, have an almost immediate effect on inflation figures, according to Mark Malek, chief investment officer at Siebert Financial.
In a post on his social media platform Truth Social on Friday morning, President Donald Trump urged Iran to engage in dialogue.
There is still time to put an end to this slaughter, even though the next planned attacks will be even more vicious than the ones that have already occurred. Trump wrote, “Iran must reach an agreement before it’s too late to preserve the Iranian Empire.”. “Just do it now, before it’s too late, to stop more deaths and destruction. “.”.
Trump stated that he is giving Iran “perhaps, a second chance” to reach a nuclear agreement in a different early-morning post. “I gave Iran 60 days to’make a deal’ two months ago. “Today is day sixty-one! They ought to have done it,” he wrote.
In addition, a widely followed University of Michigan survey that was made public on Friday showed that consumer sentiment had improved last month. The university’s Survey of Consumers increased by 15 points to 9 percent from a month ago to 60 points in June, well above the Dow Jones estimate of 54.
The week prior to Friday’s sell-off, stocks were expected to rise. Compared to the 30-stock Dow and Nasdaq, which have lost 1 percent and 0.5 percent, respectively, the S&P is down 0.2 percent this week.
