US stock futures plunge as Israel-Iran conflict escalates; Dow futures drop 677 points, oil spikes 7%
By Aditya Bhagchandani Published on June 13, 2025, 07:16 IST
U.S. stock futures tumbled late Thursday after Israel launched a major airstrike on Iran, marking a sharp escalation in Middle East tensions and rattling global markets.
Dow Jones Industrial Average futures fell 677 points, or 1.6%, while S&P 500 futures dropped 1.7%. The tech-heavy Nasdaq 100 futures also declined, losing 1.8% in after-hours trading.
The market sell-off was triggered after Israeli Defense Minister Israel Katz declared a special state of emergency, following reports that Israeli fighter jets had carried out a coordinated strike on nuclear and military targets across Iran. According to NBC News, U.S. officials confirmed that the United States had no involvement in the attack.
Energy markets reacted sharply, with Brent crude futures surging more than 7%, and West Texas Intermediate (WTI) crude also jumping 7%, fueling concerns of potential supply disruptions and a broader geopolitical fallout. Earlier session gains erased by overnight tension
The sharp overnight reversal comes after Wall Street ended Thursday's regular session with modest gains. The Dow Jones and Nasdaq Composite each rose by 0.2%, while the S&P 500 advanced 0.4%, inching closer to its all-time high set in February.
Markets had earlier responded positively to a cooler-than-expected Producer Price Index (PPI) for May, which rose just 0.1% month-on-month, below economists' expectations of 0.2%, bolstering hopes that inflation is gradually cooling. This followed a similarly softer Consumer Price Index (CPI) print earlier this week. Trump's tariff stance adds to investor anxiety
Beyond the geopolitical crisis, markets were already grappling with trade policy uncertainty. Treasury Secretary Scott Bessent hinted that the White House could extend its 90-day tariff pause beyond the July 9 deadline for key partners — if they negotiate 'in good faith.' However, President Donald Trump reignited concerns of renewed trade friction, saying unilateral tariff letters would soon be sent to countries including Japan, South Korea, and the EU. Week-to-date gains at risk
Despite the overnight plunge, U.S. indexes were on track for their third consecutive positive week. Heading into Friday: The S&P 500 was up 0.8% ,
The Nasdaq Composite had gained 0.7% , and
The Dow Jones was tracking a 0.5% rise for the week. Key data ahead
Investors are now awaiting the preliminary June reading of the University of Michigan's Consumer Sentiment Index, a critical gauge of household confidence that could influence market sentiment heading into the weekend.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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