U.S. stock markets closed deep in the red on Friday, as escalating tensions in the Middle East sparked a sharp sell-off, particularly in financial and tech stocks. Iran’s missile counterstrikes on Israel—following Israeli attacks on strategic military and nuclear sites—sent shockwaves through global markets, triggering a flight to safety.
Major Indices Tumble
- Dow Jones Industrial Average: Dropped 1.79% to 42,197.79
- S&P 500: Declined 1.13%, closing at 5,976.97
- Nasdaq Composite: Slipped 1.30% to 19,406.83
All three major indices posted weekly losses:
- Dow: -1.3%
- S&P 500: -0.4%
- Nasdaq: -0.6%
Broad-Based Selloff Led by Financials and Tech
The downturn was widespread, with 10 of 11 S&P 500 sectors closing in the red. The hardest hit:
- Financials: -2.06%
- Information Technology: -1.5%
On the S&P 500, declining stocks outnumbered advancers by more than 6-to-1, underscoring the bearish sentiment.
Geopolitical Fears Trigger Flight to Safety
Investor nerves were rattled after reports of multiple explosions over Tel Aviv and Jerusalem, following a barrage of missiles launched by Iran. This retaliation marks a major escalation in regional conflict, fueling concerns of broader geopolitical instability.
The U.S. Dollar Index rose 0.5% to 98.16, while the yield on the 10-year Treasury climbed 5.6 basis points to 4.413%, reflecting a shift toward safer assets amid rising uncertainty.
Oil Prices Surge Amid Supply Concerns
Crude oil prices spiked nearly 7% on fears of a potential disruption in Middle East oil supplies—a key concern given the region’s importance to global energy markets.
This led to a rally in energy stocks:
- ExxonMobil: +2.2%
- Diamondback Energy: +3.7%
Stock Movers: Winners and Losers
🔻 Big Tech & Financials Fall
- Nvidia: -2.1%
- Apple: -1.4%
- Visa & Mastercard: Both down over 4%
- Adobe: -5.3%
- Oracle: Bucked the trend, jumping 7.7% to a record high
✈️ Airlines Under Pressure
Rising oil prices spooked airline investors, dragging stocks lower:
- Delta Air Lines: -3.8%
- United Airlines: -4.4%
- American Airlines: -4.9%
🛡️ Defense Stocks Rally
Amid rising conflict, defense contractors saw strong gains:
- Lockheed Martin, RTX Corp, and Northrop Grumman: All up 3%+
Looking Ahead: Volatility on the Radar
With geopolitical risks rising and oil prices spiking, markets may remain volatile in the near term. Investors will be closely watching for diplomatic developments, central bank reactions, and economic data releases in the coming days.
Key takeaway: The Middle East conflict is no longer a background concern—it’s now a central risk factor that markets can’t ignore.
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