Dow Futures indicate a significant decline on Friday as investors respond to escalating tensions in the Middle East. Israel executed a significant airstrike on Iran early Friday, targeting “dozens” of military and nuclear sites, which resulted in a sharp increase in oil prices. Elsewhere, the search continues for missing individuals following a tragic Air India crash that has resulted in a downturn in the stock prices of Boeing and other aircraft suppliers. U.S. stock futures experienced a decline, whereas oil prices saw a significant increase, following Israel’s military strike on Iran. The Dow futures contract experienced a decline of 449 points, equivalent to 1.3%, while S&P 500 futures decreased by 83 points, or 1.4%. Additionally, Nasdaq 100 futures saw a reduction of 318 points, representing 1.5%.

The potential for rising tensions in the Middle East, a vital center for oil production, has contributed to the uncertainty faced by investors who are already contending with increased trade tensions that some worry may impact global growth. Global stocks have experienced a near-continuous rally since early April, as traders largely speculate that President Donald Trump’s tariff agenda may not be as aggressive as initially anticipated. In light of the relatively benign consumer and producer price reports for May released this week, equities on Wall Street experienced gains on Thursday.

Oil prices experienced a significant increase on Friday following Israel’s extensive airstrike on Iran, which reportedly targeted numerous military and nuclear sites, as indicated by media sources. “In light of the preemptive action taken by the State of Israel against Iran, Defence Minister Israel Katz indicated that a missile and UAV (drone) assault on the State of Israel and its civilian populace is anticipated in the near term.” Brent futures increased by 5.7% to $73.32 per barrel, while U.S. West Texas Intermediate crude futures saw a rise of 6% to $72.13 per barrel. Both contracts reached their peak in nearly five months, as market participants expressed concerns that any conflict might impede shipping routes or oil infrastructure throughout the Gulf.

In response to a potential increase in geopolitical risk, investors have also transitioned into assets considered safe havens, such as gold and the Swiss franc. The yield on the 10-year U.S. Treasury note, which exhibits an inverse relationship with prices, declined to a one-month low as well. An Israeli military spokesman reported that Iran launched approximately 100 drones targeting Israeli territory in retaliation. Sirens sounded and a state of emergency was declared throughout Israel, following alerts regarding a potential missile and drone counter-strike from Tehran. Reports confirmed by Iran’s state media indicate that the strikes resulted in the deaths of Iran’s Revolutionary Guards Commander Hossein Salami, as well as six nuclear scientists.

Boeing’s shares experienced a decline exceeding 4% on Thursday, subsequent to a tragic incident involving an Air India flight en route to London’s Gatwick Airport. According to Reuters, the tragic accident resulted in the loss of over 240 lives, with rescue workers actively engaged in the search for missing individuals and aircraft components. The aircraft, a Boeing 787-8 Dreamliner with approximately 242 individuals on board, met with disaster shortly after its departure from Ahmedabad in western India, marking one of the most severe aviation tragedies in recent years. A solitary survivor emerged from the aftermath of a jet crash that struck a medical college hostel in Ahmedabad, resulting in numerous fatalities on the ground. GE Aerospace, whose GEnx-1B engines power the 787 Dreamliner, and Spirit AeroSystems also saw their share prices decline following the crash.

Adobe has increased its annual guidance following the release of fiscal second-quarter revenue that surpassed expectations, driven by robust performance in its core digital media segment, which is benefiting from a surge in demand fueled by artificial intelligence. For 2025, the company has revised its guidance for adjusted per-share income to a range of $20.50 to $20.70, accompanied by projected revenue of $23.50 billion to $23.60 billion. This marks an increase from the previous estimates of adjusted EPS between $20.20 and $20.50, and revenue expectations of $23.30 billion to $23.55 billion. The revenue for the digital media segment is now anticipated to range from $17.45 billion to $17.50 billion, an increase from the earlier projection of $17.25 billion to $17.40 billion. The owner of Photoshop announced second-quarter revenue of $5.87 billion, exceeding analysts’ average expectations of $5.8 billion. However, the company’s shares experienced a modest decline during after-hours trading on Friday. Analysts at Vital Knowledge indicated that while investors “should come away relatively happy” with Adobe’s returns, its outlook “isn’t nearly as impressive” as that of cloud-computing group Oracle, which reported earlier this week.

On Friday, the economic calendar will feature the University of Michigan’s survey, which monitors consumer sentiment and inflation expectations. Economists expect that the survey, which has displayed indications of decline in recent months as Americans express concerns regarding the effects of Trump’s tariffs, will experience a degree of recovery in June. “That would still leave it at a relatively subdued level, reflecting the still elevated inflation expectations component,” analysts at ING stated in a note to clients. Expectations for the one-year inflation rate are projected to reach 6.4%. This week’s data indicates that overall price pressures in the U.S. remained largely contained in May. However, analysts have raised ongoing concerns regarding the delayed impact of Trump’s tariffs, which has yet to be fully realized.