Friday Afternoon Coffee - Markets Update - 13 June 2025 - Markets Sink as Iran Fires Missiles at Israel; Oil, Gold Surge on Escalating Conflict

The Trade Academy Team
Jun 13
3 min read

Markets Update: Wall Street tumbled Friday as Iran launched hundreds of missiles toward Israel, retaliating against a barrage of Israeli strikes targeting Iranian nuclear and missile facilities. The mounting Middle East tensions triggered a flight to safety, sending oil and gold sharply higher while defense and energy stocks rallied.

Global Markets Roundup: 13 June 2025

By B.P. Wolff

June 13, 2025

Stocks Slide on Geopolitical Shock

U.S. stocks extended their slide as the specter of a broader military conflict rattled investors already wary of political instability at home. All three major indexes fell sharply:

Dow Jones Industrial Average: -2.02% to 42,097.69
S&P 500: -1.30% to 5,966.76
Nasdaq Composite: -1.44% to 19,380.43

Ten of eleven S&P 500 sectors closed lower, led by financials (-2.22%) and information technology (-1.74%). Airline shares tumbled amid fears of surging fuel costs: Delta (-3.8%), United (-4.7%), and American Airlines (-4.8%).

In contrast, defense stocks surged as the conflict fueled demand expectations: Lockheed Martin (+3.4%), RTX Corporation (+3.3%), and Northrop Grumman (+3.5%).

Energy and AI Drive Sector Divergence

Crude prices spiked more than 8% on fears of disrupted supply, lifting energy names like ExxonMobil (+2.1%) and Diamondback Energy (+3%). U.S. crude settled at $73.76 a barrel.

Oracle soared 7% to a record high, adding to Thursday’s 14% rally, on AI-driven optimism. Adobe fell 5.3% on concerns over its AI adoption pace. Nvidia (-2.5%) and Apple (-1.6%) declined, while Visa and Mastercard dropped over 5% after reports retailers are exploring crypto alternatives.

Safe-Haven Surge Lifts Dollar, Gold

The U.S. dollar strengthened against major currencies on safe-haven demand. The greenback rose 0.3% to 143.88 yen and 0.1% to 0.8110 against the Swiss franc. The dollar index DXY climbed 0.5% to 98.2, snapping a two-day slide.

Euro EURUSD: -0.4% to $1.1539
Yen USDJPY: +0.3% to 143.88
Swiss Franc (USDCHF): +0.1% to 0.8110.

Gold jumped 1.6% to $3,437.21 an ounce as investors sought refuge from geopolitical risk.

Economic Sentiment Rebounds Despite Unrest

Despite the turmoil, consumer sentiment posted its first rise in six months. The University of Michigan’s index rose to 60.5 in June, topping expectations.

However, the S&P 500 remains stalled just shy of record highs. It’s up roughly 20% from its April low but has barely budged over the past month.

Political Tensions Add to Market Strain

Investors are also eyeing nationwide protests set for Saturday, tied to immigration raids and coinciding with a military parade marking President Trump’s 79th birthday. The unrest has amplified concerns about domestic instability.

Grains Gain on Biofuel Boost

U.S. grain futures rose after the EPA proposed favorable rules for vegetable oil-based biofuels:

Wheat (ZW1!): +3.1% to $5.42¾/bushel
Soybeans (ZS1!): +2.5% to $10.69/bushel
Corn (ZC1!): +1.4% to $4.45/bushel

Outlook

With the Israel-Iran conflict escalating and protests looming domestically, investors are bracing for a volatile stretch. Though inflation data this week calmed rate fears, geopolitical and political risks are clouding the market’s near-term path.

Looking forward, refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team