U.S. stock markets ended Friday’s trading session sharply lower amid escalating military conflicts between Israel and Iran, impacting investor sentiment.
Overall Market Decline
The U.S. stock market indicators reported significant losses: the Dow Jones dropped by 1.79%, the S&P 500 by 1.13%, and the Nasdaq by 1.30%.
Reactions to Israeli Military Actions
Israel launched strikes on Iran’s nuclear and missile facilities, leading to retaliatory missile launches from Iran during the final hours of U.S. trading. As a result, shares of oil and defense companies surged. Brent oil prices jumped by over 7%, and WTI approached $74 per barrel.
Economic Consequences and Predictions
Global markets followed suit, with European and Asian stocks posting losses of over 1%. Increased Treasury yields and a strengthening dollar were also noted. The U.S. President urged Iran to return to nuclear talks, emphasizing the growing hopelessness of the situation. However, the University of Michigan’s consumer sentiment index showed optimism, rising to 60.5 in June.
Considering the current economic and geopolitical risks, analysts recommend closely monitoring the conflict's further developments and its impacts on the markets.
