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.

Index Performance

The major indices closed as follows:

• S&P 500: Fell by 68.29 points (1.1%) to 5,976.97.
• 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.

Smaller companies were also affected, with the Russell 2000 index decreasing by 1.8%.

Geopolitical Impact

The market downturn was primarily driven by Israel’s recent attacks on Iranian nuclear and military sites. This action heightened fears of disrupted crude oil supplies, leading to a roughly 7% increase in oil prices. Investors are concerned that prolonged instability in the region could have broader economic implications.

Sector Performance

Energy stocks saw gains due to rising oil prices, while sectors sensitive to economic disruptions, such as transportation and manufacturing, faced declines. Technology stocks, particularly those in the Nasdaq Composite, also experienced losses amid the broader market sell-off.

Investor Sentiment

Investor sentiment was further dampened by rising Treasury yields, reflecting concerns about inflation and potential interest rate hikes. The yield on the 10-year Treasury note increased, indicating a shift towards safer assets amid market volatility.

Looking Ahead

Market participants will closely monitor developments in the Middle East and their potential impact on global oil supplies and economic stability. Additionally, upcoming economic indicators and corporate earnings reports will provide further insights into the market’s direction in the coming weeks.

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

Investors are advised to stay informed and consider consulting financial advisors to navigate the current market volatility.