US markets closed in the red on Friday, also ending the week down, as it snapped a 2-week winning streak.
Israel is launching airstrikes on Iran, which has pushed the energy prices up, dragging the market down.
The S&P 500 index fell 1.13% to 5,976.97. The Nasdaq dropped 1.30% to 19,406.83. The Dow Jones plunged 1.79% to 42,197.79.
All but one of the 11 S&P 500 sectoral indices ended up in the red. Only the S&P 500 energy index was up in the session, gaining 1.42%.
S&P 500’s decline took off the gains it had seen in the week, and the index is down 0.43% for the week.
Energy and defence stocks were among the top gainers in the session.
Oracle Corporation, Occidental Petroleum, and Lockheed Martin were among the top gainers in the market. Oracle surged more than 7%.
Tesla, Exxon Mobil Corp also gained in the session with up moves between 1% to 2%.
Adobe Systems was among the top losers with a 5% decline as its sales outlook failed to satisfy investor concerns about AI.
Visa, Master Card, and Alibaba Group were also among the top losers with declines ranging between 3% and 4%.
Airline stocks, United Airlines and American Airlines Holding, fell 4% in the session as higher fuel costs and dampening travel demand dragged the stocks down.
Oil and energy stocks were up in the session due to higher energy prices. Oil prices surged by nearly 7% in the session.
Defense and shipping stocks also gained due to the anticipation of higher defense spending.
Visa and Master Card fell after a report came that retail companies like Amazon and Walmart are considering issuing their own stablecoins.
Israel-Iran conflict intensifies
Israel’s military strikes killed several high-ranking Iranian military officials, including the Chief of Staff of the Armed Forces, the Commander of the Islamic Revolutionary Guard Corps (IRGC), and the head of Iran’s Emergency Command.
Iran first responded by launching over 100 drones towards Israel. Later on Friday, Iran launched more ballistic missiles towards Israel.
Reuters reported that explosions were heard over Israel’s capital, Jerusalem, and Tel Aviv.
Israeli military says most of the missiles were intercepted.
An Iranian official said Tehran will target Israel’s economic and energy infrastructure if Iran’s structures are attacked.
The Israeli offensive, reportedly targeting nuclear enrichment sites, marks the largest attack on Iran since the Iran-Iraq War in the 1980s and comes just days ahead of a planned sixth round of nuclear talks between the US and Iran.
US President Donald Trump said it was not too late for Iran to stop the bombing campaign by reaching a nuclear deal.
US Energy Secretary Chris Wright said his team is monitoring the energy situation in the Middle East and any potential impacts to global energy supply.
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