NEW YORK, New York - U.S. stocks tumbled Friday as the world was thrown into turmoil by unprecedented attacks by Israel on Iran.

In the early hours of Friday morning, more than 200 Israeli warplanes swooped on the Iranian capital Tehran, and a host of other cities, sending bombs in all directions. Military targets, nuclear sites, residential areas were all targeted, while military leaders and nuclear scientists, together with their families were assassinated.

"There has already been great death and destruction, but there is still time to make this slaughter, with the next already planned attacks being even more brutal, come to an end. Iran must make a deal, before there is nothing left, and save what was once known as the Iranian Empire," U.S. President Donald Trump, who has been spending his opening months in office trying to broker a deal with Iran over its nuclear facilities, posted on his social media platform Truth Social.. "No more death, no more destruction, JUST DO IT, BEFORE IT IS TOO LATE." he said.

Negotiations on a U.S. deal are scheduled to resume in Oman on Sunday, but Israel has forestalleld the talks by including in its attacks, the assassination of Iran's lead negotiator in the U.S. talks.

"This conflict adds challenges to the already sizable collection of worries being maintained by the markets–those aren't going away. At the bare minimum the spike in crude, if it persists, will have an almost immediate impact on inflation numbers," Mark Malek, chief investment officer of Siebert Financial told CNBC Friday.

Wall Street suffered its worst trading day in months as the escalating Middle East tensions sent shockwaves through global markets, with all major U.S. benchmarks closing sharply lower.

U.S. Market Performance

The Standard and Poor's 500 (^GSPC) tumbled 1.13 percent to close at 5,976.97, wiping out 68.29 points in its steepest single-day decline since April. Trading volume surged to 2.989 billion shares as investors rushed to reduce risk exposure.

The Dow Jones Industrial Average (^DJI) bore the brunt of the selloff, plunging 1.79 percent or 769.83 points to finish at 42,197.79. The blue-chip index saw 484.175 million shares change hands in the broad-based retreat.

Tech stocks weren't spared, with the NASDAQ Composite (^IXIC) dropping 1.30 percent to 19,406.83, a 255.66-point decline on heavy volume of 7.836 billion shares.

Market Drivers

Friday's selloff was primarily fueled by:

• Israel's military strikes against Iran sparking global risk aversion

• Crude oil prices surging over 3 percent on supply disruption fears

• Treasury yields spiking as investors priced in delayed Fed rate cuts

• The U.S. dollar index jumping 

Sector Performance

All eleven S&P 500 sectors closed in negative territory, with:

• Financials and industrials leading declines (down over 2 percent each)

• Energy stocks showing relative strength (down just 0.3 percent)

• Technology giants Apple and Microsoft both falling over 1.5 percent

Analyst Commentary

"This was a classic risk-off move," said Mark Richardson, chief strategist at Wellington Capital. "Until we see concrete de-escalation in the Middle East, markets may remain under pressure. The key level to watch is 5,950 on the S&P 500 - if that breaks, we could see another leg down."

U.S.Dollar Strengthens Amid Geopolitical Tensions; Euro and Pound Slide

The U.S. dollar rallied against most major currencies on Friday as escalating Middle East tensions drove investors toward safe-haven assets. The greenback gained ground following Israel's strikes on Iran, which sparked a broad risk-off sentiment in global markets.

Key Currency Movements

• EUR/USD (Euro / US Dollar): The euro fell 0.31 percent to 1.1544, its lowest level in a month, as political uncertainty weighed on the single currency.

• USD/JPY (US Dollar / Japanese Yen): The dollar rose 0.29 percent to 143.89, nearing a multi-decade high, as the Bank of Japan maintained its ultra-loose monetary policy stance.

• GBP/USD (British Pound / US Dollar): Sterling dropped 0.36 percent to 1.3563, under pressure from weaker-than-expected UK economic data.

• USD/CHF (US Dollar / Swiss Franc): The dollar climbed 0.13 percent to 0.8111, with the Swiss franc losing some of its safe-haven appeal as the greenback dominated flows.

Commodity Currencies Under Pressure

• AUD/USD (Australian Dollar / US Dollar): The Aussie tumbled 0.66 percent to 0.6489, hurt by falling commodity prices and risk aversion.

• NZD/USD (New Zealand Dollar / US Dollar): The kiwi plunged 0.84 percent to 0.6016, marking its worst day in three weeks.

• USD/CAD (US Dollar / Canadian Dollar): The loonie edged down 0.05 percent to 1.3594, as oil price gains provided limited support.

Market Drivers

The dollar's strength was fueled by heightened geopolitical risks, with traders flocking to the greenback as a safe-haven asset. Rising Treasury yields and expectations of prolonged Federal Reserve rate hikes further bolstered the U.S. currency.

"Today's moves show the dollar remains the ultimate safe haven," Jane Wilson, FX strategist at Barclays said in a statement Friday. "Until we see de-escalation in the Middle East, this dollar strength could persist through next week."

Outlook

Analysts expect continued dollar strength in the near term unless geopolitical tensions ease or economic data shifts market expectations.

Global Stock Markets Dive as Middle East Tensions Spark Risk-Off Selloff

Major stock indices worldwide fell sharply on Friday after Israel launched unprecedented military strikes against Iran, triggering a flight to safety that sent oil, gold, and the U.S. dollar soaring while battering equities.

Canadian Market Shows Relative Resilience

North of the U.S. border, the S&P/TSX Composite (^GSPTSE) demonstrated more modest losses, declining 0.42 percent to 26,504.35. The 111.40-point drop came on volume of 342.612 million shares, as Canada's commodity-heavy index benefited from rising oil prices.

UK and European Markets Hit by Geopolitical Shock

The UK's FTSE 100 (^FTSE) fell 0.39 percent to 8,850.63 as investors sought refuge from escalating Middle East instability.

In Europe, the Germany DAX (^GDAXI) cratered 1.07 percent to 23,516.23, while France's CAC 40 (^FCHI) dropped 1.04 percent to 7,684.68.

The pan-European EURO STOXX 50 (^STOXX50E) plunged 1.31 percent to 5,290.47, reflecting broad risk aversion.

Belgium's BEL 20 (^BFX) slid 0.94 percent to 4,476.21.

Asia and Pacific Markets Drop on Safe-Haven Demand

In China the Shanghai Composite (000001.SS) closed at 3,377.00, down 0.75 percent, with trading volume reaching 3.762 billion shares.

Hong Kong's Hang Seng (^HSI) slid 0.59 percent to 23,892.56, while in Japan the Nikkei 225 (^N225) fell 0.89 percent to 37,834.25 as the yen weakened.

Australia's S&P/ASX 200 (^AXJO) retreated 0.21 percent to 8,547.40, while the All Ordinaries (^AORD) fell 0.29 percent to 8,770.60.

In Singapore the STI Index (^STI) edged down 0.27 percent to 3,911.42.

In India the S&P BSE SENSEX (^BSESN) dropped 0.70 percent to 81,118.60, and Indonesia's IDX Composite (^JKSE) lost 0.53 percent to 7,166.06.

In Malaysia the KLSE (^KLSE) declined 0.56 percent to 1,518.11, and New Zealand's NZX 50 (^NZ50) fell 0.76 percent to 12,552.87.

South Korea's KOSPI (^KS11) slid 0.87 percent to 2,894.62, while Taiwan's TWSE (^TWII) dropped 0.96 percent to 22,072.95.

African Markets Tumble 

In South Africa the JSE Top 40 (^JN0U.JO) saw a steep decline of 2.37 percent to 5,278.23

Commodities aSurge on Crisis Fears

Brent crude oil jumped over 3 percent as traders priced in potential supply disruptions, while gold rallied to near record highs as a safe-haven play. The U.S. dollar index (DXY) spiked to five-month highs, compounding pressure on emerging markets.

Outlook: Volatility to Persist

With Iran retaliating and the conflict threatening to destabilize global energy markets, analysts warn of continued turbulence in equities until geopolitical risks subside.

Related stories:

Thursday 12 June 2025 | Dow Jones closes 102 points higher despite U.S. dollar side | Big News Network 

Wednesday 11 June 2025 | Dow Jones finishes flat as markets digest tentative U.S.-China trade deal | Big News Network 

Tuesday 10 June 2025 | U.S. stocks advance as positive vibes come from U.S.-China trade talks | Big News Network 

Monday 9 June 2025 | Wall Street subdued as Dow Jones index dips 1 point | Big News Network