Stock Market News: Dow, S&P 500 Set to Open Down After Israel Bombs Iran
U.S. stock futures fell early Friday after Israel struck back at Iran, heightening tension in the Middle East.
Dow Jones Industrial Average futures lost 148 points, or 0.4%. Futures for the S&P 500 retreated 0.5%, and those for the Nasdaq 100 fell 0.6%. On Thursday, the S&P and Nasdaq fell. Stocks are on track for a third consecutive weekly drop.
Israel aimed attacks at sites in central Iran where there is a drone factory, The Wall Street Journal reported, citing people familiar with the matter. There hasn’t been official confirmation of the incident, but CNN said the strike was confirmed by U.S. officials.
The retaliation for Iran’s drone attack on Israel last weekend could encourage investors to seek safe-haven assets and move away from higher-risk stocks.
“Markets are reacting to new developments in the Middle East,” said Deutsche Bank analyst Henry Allen. “The news has raised fears that the conflict will escalate further, particularly since Iran had said they would respond to any attack.”
For U.S. government bonds, a typical haven asset, prices rose and yields fell. The yield on the 10-year Treasury bond slipped to 4.596%. It’s still up from below 4% at the start of the year, reflecting expectations of interest rates staying higher than previously anticipated. The 2-year yield, which briefly touched 5% on Thursday, also fell to trade at 4.971%.