Stocks tumbled early 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. Tesla Stock dropped 1%; RH rose 19%.
The Dow Jones Industrial Average fell 415 points, or nearly 1%. The S&P 500 dropped roughly 0.7%, while Nasdaq 100 futures lost 0.8%.
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 said that there is no U.S. involvement or assistance, according to NBC News.
Brent crude futures and West Texas Intermediate crude futures both surged more than 8%. WTI crude oil neared $74 a barrel.
Along with the moves in energy prices, the dollar also rallied and gold accelerated more than 1% amid a safe-haven bid from investors.
“The directional reaction in markets is predictable (oil is spiking while stocks get hit), although the mood this morning (so far) is quite calm, thanks in large part to the extremely degraded nature of Iran’s military (which limits Tehran’s ability to wage an aggressive response, at least a direct one) and the recent production hikes from OPEC+,” wrote Adam Crisafulli of Vital Knowledge in a note.
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.”
Trump said in a separate early morning post that he is giving Iran “perhaps, a second chance” to strike a nuclear deal. “Two months ago I gave Iran a 60 day ultimatum to “make a deal.” They should have done it! Today is day 61,” he wrote.
Stocks were on track for gains on the week before Friday’s sell-off. Heading into the session, the S&P was up nearly 0.8% for the week and less than 2% from an all-time high.
