The US stock market opened sharply lower on Friday as investors reacted to a surge in oil prices and rising bond yields after Israel launched a wave of airstrikes on Iran, escalating Middle East tensions.The Dow Jones Industrial Average dropped over 480 points, down 1.12%, while the Nasdaq and S&P 500 also slipped, pressured by growing concerns around inflation and economic uncertainty, initial minutes of trading.As of 10:50 AM ET, the Dow Jones Industrial Average was down 682 points (-1.59%), while the S&P 500 and Nasdaq dropped 0.99% and 1.14%, respectively, as risk-off sentiment deepened. Meanwhile, safe-haven assets like gold rallied strongly, climbing nearly 1.75%, as risk appetite waned. Oil prices jumped nearly 8%, intensifying worries about supply constraints and their potential impact on the economy.The 10-year Treasury yield ticked higher to 4.385%, reflecting ongoing shifts in interest rate expectations. Currency markets also saw the dollar strengthen against the euro, signaling increased demand for US assets.Shares of oil companies like Chevron and oil services players such as Halliburton rallied as oil prices surged about eight percent following the Israeli strike, AFP reported. Meanwhile, Brazilian meat giant JBS shares fell 6% in early trading Friday as the company made its long-awaited debut on the New York Stock Exchange, AP reported. The listing marks a major milestone for JBS, which was founded 72 years ago and has grown into one of the world’s largest meat producers. The US is a critical market for the company, accounting for roughly half of its annual revenue and employing over 72,000 people. JBS is currently the largest beef producer in the US and ranks second in poultry and pork production.Global oil prices spiked sharply on Friday, triggering broader market volatility as escalating geopolitical tensions in the Middle East rattled investor sentiment and raised concerns over potential supply disruptions.US benchmark crude surged 7.1% to $72.88 per barrel, while Brent crude, the global benchmark, climbed 7.2% to $74.32. The gains came after Israel launched a pre-emptive military strike on Iranian facilities, stoking fears of a wider regional conflict that could curtail Iranian oil exports and keep energy prices elevated worldwide.Although Iran remains a major oil producer, ongoing Western sanctions have already limited its sales. Analysts at S&P Global Commodity Insights noted that past flare-ups between Iran and Israel have often led to brief spikes in oil prices, followed by reversals once the immediate threat of escalation passed. “This is an economic shock that nobody really needs, but it is one that seems more like a shock to sentiment than to the fundamentals of the economy,” said Brian Jacobsen, chief economist at Annex Wealth Management as quoted AP.United Airlines dropped 5.2%, Delta Air Lines fell 4.5%, and Norwegian Cruise Line Holdings slipped 2.9% as investors grew concerned about higher fuel costs and potential disruptions to travel demand. Adobe tumbled 5.7% despite beating Wall Street profit expectations, as analysts said investors were unimpressed with the company’s forward guidance.In contrast, energy and defense stocks rallied. Exxon Mobil rose 2.2% and ConocoPhillips added 2.3%, supported by the oil rally. Defense contractors also gained, with Lockheed Martin and Northrop Grumman both up 2.3%, reflecting market anticipation of increased global defense spending.Gold climbed 1.8% to $3,463.70 per ounce, as risk-averse investors sought safety amid the geopolitical turmoil. However, Treasury prices fell, pushing yields higher, with the 10-year note edging up to 4.38% from 4.36%. The decline in bond prices, despite risk-off sentiment, reflected market fears that sustained high oil prices could reaccelerate inflation and constrain the Federal Reserve’s ability to cut interest rates later this year.Recent inflation data has shown moderation, but Trump’s sweeping tariffs and now the oil shock are seen as potential triggers for renewed price pressures. The Fed has maintained a cautious stance, holding rates steady this year after three cuts in 2024, as it monitors the twin risks of inflation and slowing growth.Overseas, market sentiment was similarly negative. Germany’s DAX fell 1.4%, and France’s CAC 40 dropped 1.1%, amid a broad retreat across European and Asian equity markets.
