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 potential economic disruptions.

Major Index Performance

The key U.S. stock indexes closed as follows:

• S&P 500: Fell by 68.29 points (1.1%) to 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 the potential impact of geopolitical events on the global economy.

Geopolitical Impact

The market downturn was primarily driven by concerns over escalating violence following Israel’s attack on Iranian nuclear and military targets. This action raised fears of disrupted crude oil supplies, leading to a roughly 7% surge in oil prices. Such disruptions can have broad economic effects, including increased inflation and slowed economic growth.

Market Sentiment

Investor sentiment was further dampened by rising Treasury yields, which reflect concerns about inflation. The yield on the 10-year Treasury note increased, indicating that investors are demanding higher returns to compensate for perceived risks.

Weekly and Year-to-Date Performance

For the week ending June 13, 2025:

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

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

Conclusion

The recent declines in U.S. stock markets underscore the sensitivity of financial markets to geopolitical events. Investors should remain vigilant and consider the potential impacts of global developments on their portfolios.

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