U.S. stock futures fell early Friday after Israel launched an airstrike attack on Iran, pushing energy prices higher and adding another complication at a time of heightened geopolitical tensions.
Futures tied to the Dow Jones Industrial Average fell 533 points, or 1.24%. S&P 500 futures dropped roughly 1.21%, while Nasdaq 100 futures lost 1.48%.
The market drop happened as Israel's defense minister Israel Katz declared a special state of emergency following an Israeli attack on Iran. Two U.S. officials said that there is no U.S. involvement or assistance, according to NBC News. Brent crude futures and West Texas Intermediate crude futures both surged more than 8%.
Along with the moves in energy prices, Treasury yields moved higher while the dollar also rallied and gold accelerated more than 1% amid a safe-haven bid from investors.
President Donald Trump, in a morning post on his social media site Truth Social, warned Iran to come to the negotiating table.
"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," the president wrote. "No more death, no more destruction, JUST DO IT, BEFORE IT IS TOO LATE."
In Thursday's regular session, the 30-stock Dow and the Nasdaq Composite each added 0.2%. The broad market S&P 500 , which added nearly 0.4%, is creeping closer to the all-time high reached in February; it's less than 2% off that level.
Stocks are on track for solid gains thus far this week, with the S&P 500 up nearly 0.8% and the Nasdaq Composite on pace for a 0.7% advance. The Dow is tracking for a 0.5% increase. All three are on pace for their third consecutive positive week.
On the economic front, investors will be waiting for the preliminary June reading of the University of Michigan's consumer sentiment report.
Source: CNBC