Markets Shrink on Israeli Air Strike
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 for the Dow Jones Industrials toppled 424 points, or 1%, to 42,566.
Futures for the S&P 500 index sank 57 points, or 0.9%, to 5,992.50.
Futures for the NASDAQ swooned 262 points, or 1.2%, to 21,670.50.
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%.
Stocks were on track for gains on the week before Friday’s selloff. Heading into the session, the S&P was up nearly 0.8% for the week and less than 2% from an all-time high.
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.
President Donald Trump, in a Friday 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.”
Trump said in a separate early morning post that he is giving Iran “perhaps, a second chance” to strike a nuclear deal. “Two months ago I gave Iran a 60-day ultimatum to ‘make a deal.’ They should have done it! Today is day 61,” he wrote.
In Japan, the Nikkei 225 index docked 0.9% Friday, while in Hong Kong, the Hang Seng handed over 0.6%
Oil prices jumped $5.17 to $73.21 U.S. a barrel.
Gold prices spiked $41.30 to $3,443.70 U.S. an ounce.
