Stock market today: Dow, S&P 500, Nasdaq dive, oil surges as Israel and Iran trade strikes

US stocks fell Friday after Iran retaliated against Israel’s overnight airstrikes, further escalating tensions in the Middle East and pushing oil prices higher.

The Dow Jones Industrial Average (^DJI) declined about 1.8%, or nearly 800 points. The S&P 500 (^GSPC) fell about 1.1% to close below the 6,000 level for the first time this week. The tech-heavy Nasdaq Composite (^IXIC) dropped 1.3%.

The major averages sank to session lows in afternoon trading after Israeli defense forces said dozens of Iranian missiles were launched at Israel and “all of Israel is under fire.”

Iran’s missile strikes came after the Israel Defense Forces said they launched a “preemptive” strike against Iranian nuclear targets

Crude oil (CL=F) soared more than 7% but pared overnight gains of as much as 14% as traders assessed the escalating conflict.

With the Federal Reserve reluctant to cut rates and geopolitical risks on the upswing, the S&P 500 (GSPC) may find it difficult to meaningfully extend its rally off the April lows in the near future, according to Morgan Stanley’s Wealth Management head of market research and strategy, Daniel Skelly.

But the picture is much different at the sector and individual stock levels.

“Industrials have already reclaimed record highs amid tailwinds from AI infrastructure spending and potential reshoring trends,” said Skelly in a note on Friday.

However, “defensive stocks, including health care and consumer staples with lower tariff risk, could outperform cyclicals over the next three to four months,” he added.

The S&P 500 fell back below the 6,000 level on Friday after Israel launched an attack on Iran. The broad-based index sits almost 200 points away from its February all-time closing high of 6,144.15.

The market dipped to session lows on Friday after Israel said it had identified missiles launched from Iran.

“All of Israel is under fire as Iran fires projectiles,” said the Israel Defense Forces in an X post.

“The Iranian attack is ongoing. Dozens of additional missiles were launched toward Israel,” said another IDF post.

Stocks fell to a session low with the Dow Jones Industrial Average (^DJI) dropping about 2%. The S&P 500 (^GSPC) fell around 1.2%. The tech-heavy Nasdaq Composite (^IXIC) declined roughly 1.4%.

Gold (GC=F) prices surged Friday as investors flocked to safe-haven assets following Israel’s airstrikes on Iran.

Spot gold climbed to hover near $3,425 per troy ounce, inching closer to its April record high of $3,500.05.

Gold futures rose 1.3% to trade near $3,450.50 per ounce. Year to date gold is up roughly 32%.

Energy stocks outperformed the rest of the market on Friday as oil prices surged as much 7% in reaction to Israel’s airstrikes against Iran.

The S&P 500 Energy Select ETF (XLE) gained more than 1%. Year to-date, the sector is up more than 2%.

Yahoo Finance’s Ben Werschkul reports:

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Visa (V)

Visa was the No. 1 trending ticker on Yahoo Finance on Friday after a Wall Street Journal report said major retailers like Walmart (WMT) and Amazon (AMZN) are considering issuing their own stablecoins, which could allow the retailers to avoid significant fees from traditional payment systems.

Adobe (ADBE)

Adobe stock is under pressure despite raising its full-year outlook and reporting record-high sales in its second quarter.

Despite the results, Wall Street analysts pointed out concerns over competitive pressures and a longer time horizon to reach significant AI monetization.

RH (RH)

RH stock rallied on Friday, rising more than 11% in early trading after the company reported a surprise profit in the first quarter and maintained its full-year outlook, alleviating concerns about the business amid tariffs and a weak housing market.

Yahoo Finance’s Pras Subramanian reports:

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Consumers are starting to feel better about the US economy as President Trump dials back his most aggressive stances on tariffs.

The latest University of Michigan survey released Friday showed sentiment increased for the first time in six months. The index increased to a reading of 60.5, above the 52.2 seen last month and the 53.6 expected by economists. The increase came after May brought one of the lowest readings on record.

Pessimism over the inflation outlook lessened in June as one-year inflation expectations plunged from a more than four-decade high to 5.1%. In May, one-year inflation expectations hit 6.6%.

Long-run inflation expectations, which track expectations over the next five to 10 years, also fell, hitting 4.1% in June, down from 4.2% in May.

“Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed,” Survey of Consumers director Joanne Hsu wrote in the release.

Hsu added, “Despite this month’s notable improvement, consumers remain guarded and concerned about the trajectory of the economy.”

Read more here.

President Trump told The Wall Street Journal on Friday that Israel’s strikes on Iran could end up being “great for the market.”

He told the publication:

Trump did not immediately react to the unfolding situation late Thursday, but he has spent Friday morning expressing support for Israel’s actions and warning Iran to make a deal over its nuclear program — or face more repercussions.

Stocks opened lower on Friday after Israel attacked Iran, and oil prices surged as investors fled to safe-haven assets.

The Dow Jones Industrial Average (^DJI) dropped about 1%, while the S&P 500 (^GSPC) fell around 1%. The tech-heavy Nasdaq Composite (^IXIC) declined roughly 1.3%.

Israel said it targeted Iran’s nuclear program. Oil futures (CL=F) soared as much as 13%. Gold futures (GC=F) jumped 1.7%, while bitcoin (BTC-USD) partially recovered from an overnight tumble to hover around $105,000 per token.

RH stock soared 20% premarket Friday after the company reported a surprise profit and maintained its full-year outlook.

The home furnisher reported earnings of $0.13 per share, compared to analyst estimates for a $0.09 loss. Revenue came in at $814 million, slightly below LSEG-compiled estimates for $818 million.

RH has had a rough start to its 2025 fiscal year. The stock is down 55% year to date as the company battled tariffs, market volatility, and a weaker housing market.

On the company’s earnings call, RH CEO Gary Friedman outlined some of the company’s struggles, particularly with its supply chain in the wake of “Liberation Day” tariffs.

“Everywhere got rocked from the reciprocal tariff announcements,” Friedman said. “When the market went down, our business went down.”

Read more here.

For a two-year stretch, the “Magnificent Seven” stocks led a small cohort of stocks outperforming the S&P 500 (^GSPC). Now, a broader set of names are participating in year-to-date gains, and several Wall Street strategists see that as a bullish sign for markets.

Yahoo Finance’s Josh Schafer writes in today’s Morning Brief:

Read more here.

Shares in airlines are under pressure from the surge in crude oil prices, which is likely to hike their fuel costs.

United Airlines (UAL) led the stock declines, sliding 5.2% in pre-market trading. Delta Air Lines (DAL) shares fell 4.8%, Southwest Airlines (LUV) backed off 3.1%, and American Airlines (AAL) moved 4.3% lower.

Carriers are already grappling with a slowdown in bookings, the risk of new US tariffs on imported planes, and a hit to consumer confidence from trade tensions.

Israel’s attack on Iran’s nuclear and military facilities is spooking markets across the board. Here’s where major assets stand early on Friday morning amid mounting fears of an escalating conflict.

Oil

Crude futures were up about 8%, with Brent (BZ=F) trading at $74.60 a barrel and West Texas Intermediate (CL=F) at $73.. Both benchmarks were easing back from a steeper spike in the aftermath of the strike, which saw Brent surge over 13%.

Gold

The precious metal jumped 1% to about $3,437 an ounce as investors sought out safer assets. Gold has already risen about 30% this year so far as President Trump’s trade policy unsettled markets.

US Dollar

The greenback (DX=F) rose in the rush to havens, gaining over 0.6% against a basket of other major currencies. But some see the rally as more limited than expected, putting its reputation as a crisis shelter to the test.

Bitcoin

The biggest cryptocurrency (BTC-USD) sank as much as 3% against the dollar after the attack. It has pared losses slightly, and is now down about 2% at around $104,800. Other digital tokens also retreated, with ether (ETH-USD) pulling back almost 8% at one point.

President Trump weighed in early Friday with his first comments on the escalating situation in the Middle East.

On Truth Social, he posted a screed urging Iran to “make a deal.”

The only event on Trump’s public schedule today is national security council meeting at 11 a.m. ET.

Here are some top stocks trending on Yahoo Finance in premarket trading:

Israel launched a surprise strike on an Iranian military site overnight. The move raised fears of wider conflict in the region. As a result, energy stocks rose in premarket trading.

Diamondback Energy, Inc. (FANG) stock was up 6%, and Occidental Petroleum Corporation (OXY) rose 5%.

Defense stocks also climbed before the bell as investors reacted to Israel’s strike on Iran.

RTX Corporation (RTX) was up 6%, and Lockheed Martin Corporation (LMT) rose 4%.

Bitcoin and other cryptocurrencies fell as the Israeli attack on Iran shook global markets. Both of the two major currencies, bitcoin and ether, held significant losses.

Bloomberg reports:

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Asian markets sank late Thursday evening as an Israeli attack on Iran shook global markets, leading to widespread sell-offs as investors sought safer assets.

Reuters reports: