Complete Market OverviewMajor Indexes Drop Sharply as Middle East Tensions Spark Oil Price Surge
U.S. stock markets opened sharply lower on Friday, June 13, 2025, as investors reacted to escalating tensions between Israel and Iran. At the market open, all three major indexes plunged following Israel’s overnight strikes against Iran’s nuclear program and military leadership.
The Dow Jones Industrial Average (DJI) fell 602.59 points or 1.40% to 42,365.03 at the opening bell. The S&P 500 dropped 52.63 points or 0.87% to 5,992.63, while the tech-heavy Nasdaq Composite declined 179.21 points or 0.91% to 19,483.27.
This sharp decline comes after a positive session on Thursday when all three major indexes closed higher as investors weighed the outcome of U.S.-China trade talks. The stock market today is reacting to a significant shift in geopolitical stability that threatens to overshadow recent economic optimism.
Oil Prices Surge as Middle East Conflict Intensifies
The most dramatic market reaction at today’s market open came from the energy sector, with oil prices soaring in response to the Israel-Iran conflict. West Texas Intermediate crude futures, the U.S. benchmark, jumped 6.69% to $72.59 per barrel. Earlier in the morning, prices had spiked as high as $77.60, marking the highest level in months.
Energy stocks are among the few bright spots in today’s market, with Occidental Petroleum Corporation (OXY) rising 2.41% to $45.84, Exxon Mobil Corporation (XOM) gaining 1.48% to $111.35, and Chevron Corporation (CVX) edging up 0.23% to $145.30.
Israeli Prime Minister Benjamin Netanyahu stated that the military operation, called “Rising Lion,” could last “as many days as it takes,” while Iran’s Supreme Leader Ayatollah Ali Khamenei warned that Israel “should expect severe punishment” for the attacks.
Safe Haven Assets Rally Amid Market Uncertainty
As is typical during periods of geopolitical turmoil, investors are flocking to traditional safe-haven assets. Gold prices surged 1.67% to $3,459.30 per ounce, putting the precious metal on track to settle at an all-time high. The U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, also strengthened.
The CBOE Volatility Index (VIX), often referred to as the market’s “fear gauge,” jumped 10.87% to 19.98, reflecting heightened investor anxiety in the markets today.
Tech Stocks Under Pressure Despite Recent AI Optimism
Technology stocks, which have been driving much of the market’s gains in recent years, are facing pressure at the market open. NVIDIA Corporation (NVDA), a leader in AI-based semiconductors, fell 1.24% to $143.20. The company recently beat Wall Street’s lowered targets for its fiscal first quarter, though its sales guidance for the current period was below expectations.
Other tech giants are also struggling, with Apple (AAPL) down 1.04% and Microsoft (MSFT) slipping 0.09%. Tesla (TSLA) declined 0.71% to $316.84 after being downgraded by Baird from outperform to neutral earlier this week.
Upcoming Economic Data to Watch
Despite the geopolitical tensions dominating market news today, investors will still be closely monitoring key economic data scheduled for release. The University of Michigan’s preliminary Consumer Sentiment Index for June will be published at 10:00 AM ET, with economists expecting a reading of around 52.2, unchanged from May.
This consumer sentiment data could provide important insights into how Americans are feeling about the economy amid rising international tensions and ongoing concerns about inflation and interest rates.
Market Outlook: Breaking Three-Week Winning Streak?
Prior to today’s selloff, the major indexes were on pace to post weekly gains for the third consecutive week after closing higher on Thursday. Investors had welcomed news of progress on trade deals between the U.S. and China, as well as better-than-expected reports on inflation.
The stock market live reaction today threatens to break that positive streak. Coming into this session, approximately 46% of companies in the S&P 500 were sitting on year-to-date gains that topped the index’s 2.6% gain for 2025, showing a broader market participation than in previous years when the “Magnificent Seven” tech stocks dominated returns.
Corporate News and Earnings
While geopolitical concerns are overshadowing corporate news in the markets today, there are still some notable stock movements based on company-specific developments. RH (RH), formerly known as Restoration Hardware, is the top gainer in the S&P 500, surging 18.41% to $209.24.
On the downside, VEON Ltd. (VEON) plummeted 16.49% to $39.25, while Archer Aviation Inc. (ACHR) tumbled 14.63% to $10.02.
As the market open unfolds, traders and investors will be closely monitoring developments in the Middle East while also preparing for next week’s economic calendar, which includes industrial production data and the NAHB Housing Market Index on Monday.
The sudden escalation of geopolitical tensions serves as a stark reminder that even amid positive economic indicators and trade developments, external shocks can rapidly shift market sentiment and create significant volatility in the stock market today.