U.S. stock futures fall after Israel strikes Iran

June 13, 2025 (MLN): U.S. stock futures declined early Friday following Israel's airstrike on Iran, with investors reacting sharply to escalating geopolitical tensions.

Dow Jones Industrial Average futures fell by 593 points, or 1.38%, while S&P 500 and Nasdaq 100 futures dropped by 1.55% and 1.73%, respectively.

The downturn came after Israeli Defense Minister Israel Katz declared a special state of emergency.

According to NBC News, two U.S. officials confirmed that there was no American involvement in the operation.

The market reaction extended to commodities, with Brent crude futures surging over 7% and West Texas Intermediate crude futures also rising 7%.

This contrasts with Thursday’s regular session, where the Dow and Nasdaq Composite both added 0.2%, and the S&P 500 rose nearly 0.4%, inching closer to its February all-time high.

Positive economic indicators earlier in the week had lifted market sentiment.

The producer price index for May increased just 0.1% month-over-month, below the 0.2% expected by economists surveyed by Dow Jones.

Coupled with a cooler-than-anticipated consumer inflation report earlier in the week, bond yields eased, encouraging optimism among investors, as CNBC reported.

Despite these gains, concerns lingered over the White House’s tariff strategy.

Treasury Secretary Scott Bessent indicated a willingness to extend the 90-day tariff pause beyond July 9 if trading partners negotiate in “good faith.”

However, President Trump’s remarks about potentially issuing unilateral tariffs reignited anxiety, as he mentioned forthcoming notices to countries like Japan and South Korea.

As the trading week nears its end, the S&P 500 is up nearly 0.8%, the Nasdaq Composite has gained 0.7%, and the Dow is tracking a 0.5% increase, positioning all three indexes for a third consecutive week of gains.

Investors now await the preliminary June reading of the University of Michigan’s consumer sentiment report for further direction.

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