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US stocks fell on Friday as Israel’s attack on Iran shook global markets, leading oil prices to spike after Iran reportedly described the strike a “declaration of war.”
The Dow Jones Industrial Average (^DJI) tumbled roughly 1.4% as investors lost their appetite for riskier assets. The S&P 500 (^GSPC) dropped 0.8%, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.9%.
On Thursday night, Israel conducted what it called a “preemptive strike” against Iran, citing fears over development of nuclear weapons in Tehran. Crude oil (CL=F) prices soared as much as 13% as the strikes hit the third largest OPEC producer. The safe-haven asset of gold (GC=F) jumped over 1.5%.
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.
In response, Iran described the strikes as a “declaration of war” in a letter to the United Nations, AFP reported. It has also launched a drone attack on Israel, seen by some as a precursor to a more severe missile onslaught.
President Trump urged Iran to “make a deal” over its nuclear program to avert further conflict, in a post to 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 have been creeping higher despite questions around Trump’s domestic agenda, as he hinted at steps 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.
LIVE 13 updates
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Consumer sentiment rebounds for first time in six months
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.”
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Trump says Israel attack could end up being ‘great for the market’
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.
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Stocks fall after Israel attack on Iran, oil prices surge
Stocks opened lower on Friday after Iran 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.
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RH stock soars 20% premarket on surprise profit
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.”
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The 2025 stock market rally is about more than just the ‘Magnificent 7’
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:
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Airline stocks lose altitude, weighed down by oil surge
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.
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How Israel’s strike has hit assets from gold to bitcoin
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.
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Good morning. Here’s what’s happening today.
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Trump weighs in on Israel strikes, urges Iran to ‘make a deal’: ‘JUST DO IT’
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.
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Trending tickers: Energy and defense stocks
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%.
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Cryptocurrencies fall as all markets shaken by Israel’s attack on Iran
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 open lower following Israeli attack on Iran
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:
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Israel attacks Iran in major escalation, leading to stock sell-off while oil and gold surge
Israel has attacked Iran in the largest recent escalation of tensions in the region. Markets reacted swiftly to the news, with the three major gauges all plunging over 1%.
Gold (GC=F) and oil prices surged with investors scurrying to safer assets, hoping to avoid the worst of a financial shake up.
Iran is the third largest producer of oil within OPEC+, and the attack has caused prices to surge over 5%. Brent crude (BZ=F) futures jumped 5.5% to $73.27 a barrel while West Texas Intermediate surged 5.9% to $72.05 a barrel.
Gold (GC=F) popped 0.9% to $3,434.40 an ounce.
A retaliatory attack from Iran against Israel is expected imminently, with a “special situation” being declared by the Isreali defense minister.
US Secretary of State Marco Rubio said Israel took “unilateral action”, clarifying that the US was not involved in the strikes ahead of a sixth meeting between the US and Iran on Sunday.
