US Stock Market Highlights: Dow falls more than 700 points on Friday as attacks between Israel
Geopolitical Tensions Shake Wall Street, Energy Stocks Rally
U.S. stock markets took a sharp hit on Friday, June 13, 2025, as tensions escalated between Israel and Iran. The Dow Jones Industrial Average plunged 769.83 points, or 1.79%, closing at 42,197.79. The S&P 500 dropped 1.13% to 5,976.97, and the Nasdaq Composite fell 1.30% to 19,406.83.
The market sell-off began after Israel launched airstrikes on Iran, heightening fears of a broader conflict in the Middle East. Investors rushed to safer assets, pushing gold prices near a two-month high and crude oil futures up more than 7%.
What Triggered the Market Crash?
The drop in U.S. stocks was largely driven by:
- Israel’s surprise attack on Iran, prompting a strong response from Tehran.
- Rising oil prices, with WTI crude nearing $74 a barrel.
- Increased global uncertainty, pushing investors to reduce risk.
On Thursday night, Israel’s Defense Minister, Yoav Gallant, declared a state of emergency after confirming airstrikes on Iran. By Friday, the Israel Defense Forces (IDF) reported incoming missiles from Iran, marking a significant escalation.
Adding to the crisis, Iran announced its withdrawal from the upcoming nuclear talks with the U.S., further straining diplomatic efforts.
Safe-Haven Assets and Energy Stocks Surge
As geopolitical risks surged, investors shifted focus:
- Oil and defense stocks climbed.
- ExxonMobil rose 2%.
- Lockheed Martin and RTX surged over 3%.
- Gold prices reached a two-month high.
- Technology stocks, including Nvidia, fell as traders moved away from riskier assets.
Expert Insight: Inflation Concerns Resurface
Mark Malek, Chief Investment Officer at Siebert Financial, commented:
“This conflict adds to the market’s existing anxieties. The spike in oil, if sustained, will likely impact inflation figures quickly.”
His concerns echo the broader fear that rising energy prices could reverse recent progress in cooling inflation and affect future Federal Reserve decisions.
Trump Responds to the Crisis
Former President Donald Trump issued multiple statements on his social media platform, Truth Social, urging Iran to return to the negotiation table.
In a striking post, Trump warned:
“There has already been great death and destruction… Iran must make a deal before there is nothing left.”
He also claimed he had previously given Iran a 60-day deadline to reach a nuclear agreement. “Today is day 61,” he noted, suggesting the current situation was avoidable.
Consumer Sentiment Sees Surprise Uptick
Amid the chaos, a glimmer of economic positivity emerged. The University of Michigan’s Consumer Sentiment Index rose to 60.5 in June, beating expectations of 54. This marks a 15.9% increase from the previous month and signals stronger consumer confidence.
Weekly Market Performance: All Indexes Down
Friday’s sharp sell-off pushed all three major indexes into the red for the week:
- S&P 500: down 0.4%
- Nasdaq Composite: down 0.6%
- Dow Jones: down 1.3%
Investors are now bracing for potential volatility in the coming weeks as the Middle East conflict continues to unfold.
What This Means for Investors
If the Israel-Iran conflict escalates further, markets may face prolonged volatility, especially in sectors like:
- Energy
- Defense
- Safe-haven assets (e.g., gold, U.S. Treasury bonds)
Investors are advised to:
- Monitor geopolitical developments closely.
- Diversify portfolios to reduce exposure to high-risk assets.
- Keep an eye on energy prices and inflation reports.
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