Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 11, 2025.
Brendan McDermid | Reuters
U.S. stock futures fell early Friday after Israel launched an airstrike attack on Iran, pushing energy prices higher and adding another complication at a time of heightened geopolitical tensions.
Futures tied to the Dow Jones Industrial Average fell 533 points, or 1.24%. S&P 500 futures dropped roughly 1.21%, while Nasdaq 100 futures lost 1.48%.
The market drop happened as Israel’s defense minister Israel Katz declared a special state of emergency following an Israeli attack on Iran. Two U.S. officials said that there is no U.S. involvement or assistance, according to NBC News. Brent crude futures and West Texas Intermediate crude futures both surged more than 8%.
In Thursday’s regular session, the 30-stock Dow and the Nasdaq Composite each added 0.2%. The broad market S&P 500, which added nearly 0.4%, is creeping closer to the all-time high reached in February; it’s less than 2% off that level.
The May reading of the producer price index helped lift the major averages, reflecting a gain of 0.1% from the prior month. That’s cooler than the 0.2% increase economists polled by Dow Jones were seeking. Bond yields also eased, lifting investors’ sentiment. Earlier this week, the May consumer price index report also came in softer than anticipated.
Nevertheless, investors’ worries over the White House’s tariff policy kept a firm lid on market gains. Treasury Secretary Scott Bessent signaled on Wednesday that the Trump administration would be open to extending the current 90-day tariff pause beyond the July 9 deadline for top trading partners – if they show “good faith” in negotiations.
However, President Donald Trump raised fears of unilateral tariffs, telling reporters, “We’re dealing with Japan, we’re dealing with South Korea. We’re dealing with a lot of them. So we’re going to be sending letters out, in about a week and a half, two weeks, to countries, telling them what the deal is, like I did with EU.”
Stocks are on track for solid gains thus far this week, with the S&P 500 up nearly 0.8% and the Nasdaq Composite on pace for a 0.7% advance. The Dow is tracking for a 0.5% increase. All three are on pace for their third consecutive positive week.
On the economic front, investors will be waiting for the preliminary June reading of the University of Michigan’s consumer sentiment report.
