Markets Crater as Iran-Israel Conflict Escalates

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.The Dow Jones Industrials tumbled 769.83 points, or 1.8%, to 42,197.79The S&P 500 index dipped 68.29 points, or 1.1%, to 5,976.97 The NASDAQ Composite was down 255.56 points, or 1.3%, to 19,406.83.Stocks were on track for gains on the week before Friday’s selloff. The S&P is down 0.5% this week, while the 30-stock Dow dropped 1.5%, and NASDAQ lost 0.8%. Nvidia and other stocks that have led the market’s comeback from the April lows dropped as investors shed risk. Oil and defense stocks were higher. Exxon added 2%, while Lockheed Martin and RTX each jumped about 3%.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 were quoted as saying there was no U.S. involvement or assistance, Stocks fell dramatically Friday afternoon after Israel Defense Forces said that Iran launched missiles toward Israel late Friday local time, in retaliation for Israel’s series of airstrikes against Iran. Iranian state television said Friday afternoon that Iran will not participate in the sixth round of nuclear negotiations with the U.S. planned for this weekend.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.”Separately, a closely watched University of Michigan survey released Friday indicated an uptick in consumer sentiment last month. The university’s Survey of Consumers rose to 60.5 in June, well ahead of the Dow Jones estimate for 54 and a 15.9% increase from a month ago.Prices for the 10-year Treasury sagged, raising yields to 4.41% from Thursday’s 4.36%. Treasury prices and yields move in opposite directions. Oil prices increased $5.19 to $73.23 U.S. a barrel. Gold prices vaulted $52.10 to $3,454.50 U.S. an ounce.