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.

Index Performance

The major stock indexes closed as follows:

• S&P 500: Fell by 68.29 points (1.1%) to 5,976.97, erasing the week’s 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 39.59 points (1.8%) to 2,100.51.

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

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 region. This development led to a surge in oil prices by approximately 7%, as investors worried about potential disruptions to crude oil supplies. The increased oil prices have raised concerns about inflation and the overall health of the global economy.

Market Reactions

In response to these events, Treasury yields rose due to inflation concerns. The 10-year Treasury yield increased, reflecting investor apprehension about rising prices and potential interest rate adjustments by the Federal Reserve.

For the week, the indexes performed as follows:

• S&P 500: Declined 0.4%.
• Dow Jones Industrial Average: Dropped 1.3%.
• Nasdaq Composite: Decreased 0.6%.
• Russell 2000: Lost 1.5%.

Year-to-date, the S&P 500 and Nasdaq have shown modest gains, while the Dow and Russell 2000 remain in negative territory.

Investor Outlook

Investors are closely monitoring the situation in the Middle East, as further escalation could lead to more volatility in the markets. The Federal Reserve’s response to inflation concerns and potential interest rate adjustments will also be key factors influencing market performance in the coming weeks.

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

As the situation develops, staying informed and consulting with financial advisors is advisable for making well-informed investment decisions.