U.S. Stock Markets Decline Amid Geopolitical Tensions and Rising Oil Prices

Market Overview

On Friday, June 13, 2025, U.S. stock markets experienced significant declines as escalating geopolitical tensions in the Middle East led to a surge in oil prices, raising concerns about global economic stability.

Major Index Performance

• S&P 500: Fell by 68.29 points (1.1%) to close at 5,976.97, erasing the week’s earlier gains.
• Dow Jones Industrial Average: Dropped 769.83 points (1.8%) to 42,197.79.
• Nasdaq Composite: Declined 255.66 points (1.3%) to 19,406.83.
• Russell 2000: Decreased by 39.59 points (1.8%) to 2,100.51.

These declines reflect investor anxiety over potential disruptions to oil supply and broader economic implications.

Geopolitical Impact

The market downturn was primarily driven by Israel’s recent attacks on Iranian nuclear and military sites, which heightened fears of escalating conflict in the Middle East. This development led to a surge in oil prices, with crude jumping approximately 7%, as investors worried about potential disruptions to global oil supplies.

Sector Performance

Energy stocks saw gains due to rising oil prices, while sectors sensitive to economic growth, such as technology and consumer discretionary, faced declines. Notably, major tech companies like Apple and Amazon experienced significant losses, contributing to the overall market downturn.

Investor Sentiment

Investor sentiment was further dampened by concerns over inflation and potential interest rate hikes. Treasury yields rose as inflation worries persisted, adding to the market’s volatility.

Looking Ahead

Market participants are closely monitoring geopolitical developments and their potential impact on global economic stability. The Federal Reserve’s upcoming meeting will also be in focus, as investors seek guidance on future monetary policy in light of current economic uncertainties.

For more detailed information, refer to the original article: How major US stock indexes fared Friday, 6/13/2025