Israel’s strike on Iran has swiftly impacted the stock markets, as futures tied to the Dow Jones Industrial Average fell by more than 600 points, or almost 1.4 per cent. S&P 500 futures also dropped by over 1.5 per cent, while Nasdaq 100 futures declined by 1.7 per cent.
Futures and Indices React to Middle East Tensions
The movement in futures prices clearly indicates that US indices will open lower when the market opens today (Friday). Meanwhile, top indices in the Asian stock markets had already dropped significantly this morning, although some later pared losses.
Hong Kong’s Hang Seng Index dropped by 0.8 per cent, while Japan’s Nikkei 225 declined by more than 1 per cent. In India, the Sensex and Nifty 50 indices dropped by 0.95 per cent and 0.8 per cent, respectively.
European stock markets also began reacting early. The UK’s FTSE 100 corrected by 0.5 per cent in pre-trading hours this (Friday) morning, after closing at a record high yesterday.
Read more on Israel’s strike on Iran: Oil and Gold Jump
Market-Moving Events
The geopolitical tension triggered by Israel’s latest strike on Iran has escalated fears of another war in the region. Israel targeted Iran’s nuclear facilities, ballistic missile factories, and military commanders. Iran has already vowed to retaliate following the attack.
According to Israeli media, the Israeli Defence Force identified 100 drones launched by Iran towards Israel. World leaders, meanwhile, are calling for restraint.
This latest geopolitical escalation in the Middle East, which is impacting global stock markets, comes only two months after former US President Donald Trump’s tariff policies rattled markets. At that time, the S&P 500 Index lost $6.6 trillion in value over two trading sessions. However, the subsequent rebound was also notable, with the index posting its largest single-day gain since the 2008 financial crash.
One set of companies that typically benefit during market volatility is brokers and trading-related firms. IG Markets confirmed that trading activity on its platform in April was higher than during typical market conditions. Some companies even reported their “strongest days” amid the tariff-driven market swings.
It remains to be seen how the US market will respond to the Middle East tensions when trading resumes today (Friday), and whether the situation will escalate or ease over the weekend.
Israel’s strike on Iran has swiftly impacted the stock markets, as futures tied to the Dow Jones Industrial Average fell by more than 600 points, or almost 1.4 per cent. S&P 500 futures also dropped by over 1.5 per cent, while Nasdaq 100 futures declined by 1.7 per cent.
Futures and Indices React to Middle East Tensions
The movement in futures prices clearly indicates that US indices will open lower when the market opens today (Friday). Meanwhile, top indices in the Asian stock markets had already dropped significantly this morning, although some later pared losses.
Hong Kong’s Hang Seng Index dropped by 0.8 per cent, while Japan’s Nikkei 225 declined by more than 1 per cent. In India, the Sensex and Nifty 50 indices dropped by 0.95 per cent and 0.8 per cent, respectively.
European stock markets also began reacting early. The UK’s FTSE 100 corrected by 0.5 per cent in pre-trading hours this (Friday) morning, after closing at a record high yesterday.
Read more on Israel’s strike on Iran: Oil and Gold Jump
Market-Moving Events
The geopolitical tension triggered by Israel’s latest strike on Iran has escalated fears of another war in the region. Israel targeted Iran’s nuclear facilities, ballistic missile factories, and military commanders. Iran has already vowed to retaliate following the attack.
According to Israeli media, the Israeli Defence Force identified 100 drones launched by Iran towards Israel. World leaders, meanwhile, are calling for restraint.
This latest geopolitical escalation in the Middle East, which is impacting global stock markets, comes only two months after former US President Donald Trump’s tariff policies rattled markets. At that time, the S&P 500 Index lost $6.6 trillion in value over two trading sessions. However, the subsequent rebound was also notable, with the index posting its largest single-day gain since the 2008 financial crash.
One set of companies that typically benefit during market volatility is brokers and trading-related firms. IG Markets confirmed that trading activity on its platform in April was higher than during typical market conditions. Some companies even reported their “strongest days” amid the tariff-driven market swings.
It remains to be seen how the US market will respond to the Middle East tensions when trading resumes today (Friday), and whether the situation will escalate or ease over the weekend.
This post is originally published on FINANCEMAGNATES.
