The S&P 500 Index fell -1.13%, the Dow Jones Industrial Average dropped -1.79%, and the Nasdaq 100 decreased -1.29% on Friday. This decline followed Israel’s military attacks on Iranian nuclear and missile programs, targeting about 100 sites in Iran. Iran retaliated by launching dozens of ballistic missiles into Israel, escalating tensions and likely leading to further Israeli strikes.
In response to the situation, oil prices surged +7%, while gold prices rose +1.5%. Investors are cautious ahead of the G-7 meeting and upcoming US-Iranian nuclear talks, scheduled for Sunday. The preliminary June University of Michigan US consumer sentiment index improved, increasing to 60.5 compared to the expectation of 53.6, and 1-year inflation expectations fell to 5.1% from 6.6% in May.
In stock movements, defense stocks like Lockheed Martin and Northrop Grumman saw gains, while travel stocks suffered, with major airlines including American Airlines and United Airlines dropping over -4%. Boeing’s stock fell nearly -2% following a tragic crash in India. The implications of rising oil prices and potential military conflict are influencing market dynamics.
