Dow Futures Plummet 600 Points as Israel Strikes Iran: Live Updates & Expert Insights

Market Drop Following Israeli Airstrike on Iran

U.S. stock futures fell sharply Thursday night after Israel launched an airstrike on Iran. The Dow Jones Industrial Average futures dropped by about 611 points, nearly 1.4%. The S&P 500 and Nasdaq 100 futures also fell around 1.6%.

This decline in the market comes as Israel’s defense minister declared a special state of emergency. Two U.S. officials clarified that the U.S. is not involved in this conflict.

In response to these developments, Brent crude oil futures surged more than 7%, while West Texas Intermediate crude also rose by 7%. This spike reflects growing concerns over potential disruptions in oil supply due to geopolitical tensions.

Despite the current drop in futures, the stock market had been showing signs of recovery earlier this week. During Thursday’s regular session, the Dow and Nasdaq Composite both gained about 0.2%, and the S&P 500 inched up nearly 0.4%. This indicates mixed investor sentiment, as the S&P 500 nears its all-time high from February, sitting less than 2% below that level.

Furthermore, recent economic data have provided some optimism. The May producer price index showed a modest increase of 0.1%, lower than the 0.2% economists had expected. This cooling inflation data has eased bond yields, further uplifting investor sentiment.

However, worries about the U.S. tariff policy keep investors cautious. Treasury Secretary Scott Bessent indicated that the Trump administration might extend a tariff pause, depending on the goodwill shown by trading partners in negotiations. At the same time, President Trump hinted at possible unilateral tariffs on countries such as Japan and South Korea.

In recent weeks, the stock market has seen some gains, with the S&P 500 up nearly 0.8% and the Nasdaq Composite on track for a 0.7% advance. All three major indexes are aiming for their third consecutive week of positive momentum.

As we look ahead, market watchers will focus on the University of Michigan’s preliminary June consumer sentiment report for further insights into consumer confidence and its potential impact on the market.

For more on the geopolitical situation, you can read NBC News’ coverage here.

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