Stocks fell on Monday after the U.S. and Israel attacked Iran over the weekend, causing oil prices to surge and adding an unstable Middle East to a list of growing worries for equity investors.
The Dow Jones Industrial Average descended 250.29 points, or 1.1%, to 48,727.63.
The S&P 500 dwindled 36.94 points to 6,841.94.
The NASDAQ dumped 95.10 points to 22,573.11.
The joint U.S.-Israeli strikes killed Supreme Leader Ayatollah Ali Khamenei, marking a watershed moment for the Islamic Republic and one of its most consequential episodes since 1979. Iranian officials vowed a forceful retaliation against the strikes, raising fears the conflict could escalate further across the region as blasts were heard in places such as Dubai and Abu Dhabi.
President Donald Trump told the media that U.S. military operations in Iran are “ahead of schedule,” but investors are still worried about a prolonged conflict despite those comments.
The major averages recouped a chunk of their losses, thanks to gains in defense stocks. Northrop Grumman advanced around 4%, as did RTX, while Lockheed Martin climbed 3%. Energy shares including Exxon Mobil and Chevron saw gains as well.
Prices for the 10-year Treasury weakened, hiking yields to 4.04% from Friday’s 3.96%. Treasury prices and yields move in opposite directions.
Oil prices strengthened $4.58 to $71.60 U.S. a barrel.
Gold prices regained $99.10 to $5,347 U.S. an ounce.
