US stock futures tumbled on Friday as an Israeli attack on Iran’s nuclear program sites shook global markets, leading oil prices to spike amid fears of a new Middle East war.
Dow Jones Industrial Average futures (YM=F) dropped 1.1%, easing slightly from sharper gains in the aftermath of the strikes. S&P 500 futures (ES=F) tumbled 1%, while those attached to the tech-heavy Nasdaq 100 (NQ=F) sank 1.3%.
5,978.00
–
(-1.18%)
As of 4:51:35 AM EDT. Market Open.
ES=F NQ=F YM=F
On Thursday night, Israel conducted what it called a “preemptive strike” against Iran, citing fears over development of nuclear weapons in Tehran. Explosions erupted across the Iranian capital, reports said. Crude oil (CL=F) prices soared as much as 10% as the strikes hit the third largest producer in OPEC+. The safe-haven asset of gold (GC=F) jumped 1%.
“We struck at the heart of Iran’s nuclear enrichment program” and ballistic missile program, Israel’s prime minister, Benjamin Netanyahu, said in a statement. He said the operation would continue “for as many days as it takes to remove this threat”, stoking fears of escalation into new war in the Middle East.
Iran has retaliated by sending 100 drones toward Israeli territory, seen as a precursor to a more effective missile attack, reports said.
US Secretary of State Marco Rubio said Israel took “unilateral action,” saying the US was not involved in the strikes and warning Iran against targeting US interests and personnel.
The dramatic developments came after a day where stocks crept higher despite questions around President 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. 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.
Read more: The latest on Trump’s tariffs
Overall, stocks have edged up this week as a trade deal between China and the US, as well as unexpected signs of softening inflation, boosted investor sentiment.
On Friday, Wall Street will get insight into how consumers are faring amid tariff uncertainty with the latest University of Michigan survey.
Next week, Wall Street’s attention will shift to the Fed with policymakers set to issue their next decision on interest rates on Wednesday. Analysts expect the central bank to hold rates steady.
LIVE 3 updates