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Article Heading: Dow Plunges as Israel Strikes Iran, Sending Oil Prices Soaring
The stock market experienced a significant downturn on Friday following reports of Israeli airstrikes on Iran, a development that sent energy prices skyrocketing and injected a fresh dose of uncertainty into an already tense geopolitical landscape.
Here's a quick rundown of the day's key events:
- The Dow Jones Industrial Average took a hit, plummeting 571 points, or 1.3%.
- The S&P 500 also felt the impact, dropping approximately 0.7%.
- Similarly, the Nasdaq Composite shed 0.7% of its value.
Tech Stocks Take a Dive, While Energy and Defense Soar
Market leaders like Nvidia, which had been instrumental in the recent market recovery from April lows, faced selling pressure as investors sought to reduce their risk exposure. Conversely, the energy and defense sectors saw gains:
- Exxon shares climbed by more than 1%.
- Lockheed Martin witnessed a surge of approximately 3%.
Geopolitical Tensions Escalate
The market's negative reaction coincided with heightened geopolitical anxieties. Israel's defense minister, Israel Katz, declared a special state of emergency following the reported Israeli attack on Iran. Notably, NBC News cited U.S. officials stating that the United States was not involved in or assisting with the operation.
Oil and Gold Prices React Sharply
The military action had an immediate impact on commodity markets:
- Brent crude futures and West Texas Intermediate (WTI) crude futures both surged by roughly 6%.
- At one point, WTI crude oil neared $74 a barrel.
- Gold prices rose to a near two-month high, fueled by demand for safe-haven assets.
Expert Analysis and Presidential Commentary
"This conflict adds challenges to the already sizable collection of worries being maintained by the markets–those aren't going away. At the bare minimum the spike in crude, if it persists, will have an almost immediate impact on inflation numbers," cautioned Mark Malek, chief investment officer of Siebert Financial.
Former President Donald Trump weighed in on the situation via his social media platform, Truth Social, urging Iran to negotiate:
"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."
In a separate post, Trump suggested he was giving Iran "perhaps, a second chance" to strike a nuclear deal, referencing a prior ultimatum.
Consumer Sentiment Shows Unexpected Improvement
Amidst the market turmoil, a University of Michigan survey offered a glimmer of positive news. The closely watched survey indicated an uptick in consumer sentiment last month, rising to 60.5 in June. This figure significantly exceeded the Dow Jones estimate of 54 and represented a 15.9% increase from the previous month.
Weekly Market Performance Affected by Friday's Sell-Off
Prior to Friday's downturn, stocks were on track for weekly gains. However, the sell-off altered the overall picture:
- The S&P 500 is now down 0.2% for the week.
- The Dow and Nasdaq have lost 1% and 0.5%, respectively, this week.
The market's reaction to the Israeli airstrikes underscores the sensitivity of global markets to geopolitical events. The situation remains fluid, and investors will be closely monitoring developments in the region and their potential impact on energy prices, inflation, and overall market stability. While the surge in consumer sentiment provides a ray of hope, the prevailing uncertainty calls for a cautious and well-informed approach to investment decisions.
Tags: Stock market, NYSE, Israel Iran, Airstrikes, Dow Jones, S&P 500, Nasdaq, Oil prices, Nvidia, Geopolitics, Consumer Sentiment, Inflation, Energy Sector, Defense Stocks
Source: https://www.cnbc.com/2025/06/12/stock-market-today-live-updates.html
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