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The S&P 500 Index is down 0.96%, the Dow Jones is down 1.53%, and the Nasdaq 100 is down 1.05% following Israel’s military attacks on Iranian nuclear facilities and military leaders. Israel targeted approximately 100 locations, and Iran responded with a drone attack on Israel. The geopolitical tensions have triggered concerns about potential disruptions to the global economy, particularly in oil prices, which surged by as much as 13% initially but stabilized at a 5% increase.
Israeli Prime Minister Netanyahu stated that these strikes would continue until the perceived threat is eliminated. U.S. President Trump commented on the necessity for Iran to negotiate a nuclear deal promptly, warning that future attacks could intensify. As markets react to these developments, the June University of Michigan consumer sentiment index increased significantly to 60.5 from the previous 52.2, while 1-year inflation expectations fell from 6.6% to 5.1%.
Overseas markets are also declining, with the Euro Stoxx 50 down 1.52%, and the Shanghai Composite Index and Japan’s Nikkei both showing losses. U.S. Treasury yields increased, with the 10-year T-note yield rising by 5.3 basis points to 4.413%. Stock movers include defense companies, such as Lockheed Martin and Northrop Grumman, showing gains, while travel stocks like Hilton and booking companies are under pressure as fears of prolonged conflict impact tourism.
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