Stock market today: Dow, S&P 500, Nasdaq dive, oil surges as Israel and Iran trade strikes
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Stock market today: Dow, S&P 500, Nasdaq dive, oil surges as Israel and Iran trade strikes
The Dow Jones Industrial Average tumbled nearly 1.8%, or almost 800 points. The S&P 500 dropped about 1.1%, while the tech-heavy Nasdaq Composite fell 1.3%. Crude oil prices soared more than 7%, paring gains of as much as 13% as the strikes hit the third-largest OPEC producer. Gold futures also jumped around 1.5% as investors flocked to the safe-haven asset. The dramatic developments came as stocks had been creeping higher despite Trump hinting at plans to advance his domestic agenda.
The Dow Jones Industrial Average (^DJI) tumbled nearly 1.8%, or almost 800 points, as investors steadily fled riskier assets. The S&P 500 (^GSPC) dropped about 1.1%, while the tech-heavy Nasdaq Composite (^IXIC) fell 1.3%.
The major averages sank to a session low in the afternoon after Israeli defense forces said dozens of Iranian missiles were launched at Israel and “all of Israel is under fire.” Iran called Israel’s strike a “declaration of war.”
Iran’s response came after Israel conducted overnight what it called a “preemptive strike” against Iranian targets, citing fears over the development of nuclear weapons. Crude oil (CL=F) prices soared more than 7%, paring gains of as much as 13% as the strikes hit the third-largest OPEC producer. Gold (GC=F) futures also jumped around 1.5% as investors flocked to the safe-haven asset.
Israel’s prime minister, Benjamin Netanyahu, has vowed that the operation against Iran’s nuclear and military facilities would continue “for as many days as it takes,” stoking fears of escalation. He said he expected “several waves” of retaliation from Iran.
President Trump urged Iran to “make a deal” over its nuclear program to avert further conflict in a post on social media. “JUST DO IT, BEFORE IT IS TOO LATE,” he wrote.
Iran has threatened to target US assets in the Middle East as part of its “severe response.” Earlier, Secretary of State Marco Rubio said Israel took “unilateral action” with no US involvement, as he warned Iran against targeting US interests and personnel.
The dramatic developments came as stocks had been creeping higher despite Trump hinting at plans to advance his domestic agenda that could rattle markets. The president floated hiking auto tariffs just a day after he said he would impose unilateral tariff rates on countries within two weeks.
Read more: The latest on Trump’s tariffs
Separately, he reiterated his call for a jumbo rate cut from the Federal Reserve, adding that he “may have to force something” amid easing inflation. Analysts expect the central bank to hold rates steady next week.
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