Market Tumbles Amid Middle East Tensions and Oil Price Surge
Wall Street saw a downturn as Israel's strikes on Iran escalated tensions, driving oil prices up 7%. U.S. energy stocks rose; however, airlines suffered losses. Defense stocks climbed amidst geopolitical concerns. The broader market experienced declines, with S&P 500 down 0.69% amid varied sector performances.
Wall Street faced a significant drop on Friday following Israel's attacks on nuclear facilities in Iran, exacerbating Middle Eastern tensions and shaking global investor confidence. The strikes, aimed at preventing Iran's nuclear armament, prompted Tehran's vow of harsh retaliation, driving oil prices up nearly 7% due to potential disruptions in Middle Eastern crude supply.
Energy stocks in the U.S. climbed, with Exxon up 1.8% and Diamondback Energy rising 3%. In contrast, airline stocks fell on fears of increasing fuel costs, with Delta Air Lines losing 2.2%, United Airlines dropping 3.1%, and American Airlines declining 3.5%.
The S&P 500 fell 0.69% to 6,003.57 points, with broader market declines. Financials led the sector drops, down 1.77%. Despite varied sector performances, defense stocks saw gains, with Lockheed Martin up 3.4%. Meanwhile, Adobe fell 5%, facing concerns over AI adoption pace, while Oracle rose 7% on strong AI service demand forecasts.
(With inputs from agencies.)
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