The three major US stock indices recorded declines at the opening of trading today, Friday, June 13, the closing session of the week, affected by a decline in risk appetite in the markets and rising fears of an escalation of the conflict in the Middle East, while demand for safe-haven assets increased.
Israel launched an airstrike on Iran in the early hours of Friday morning. Explosions were heard in Tehran and Natanz, one of Iran’s main nuclear sites, as well as in several Iranian cities. The deaths of the commander of the Revolutionary Guard, the chief of staff, the presidential advisor, and several nuclear scientists were announced. Israeli Prime Minister Netanyahu announced that Israel had struck the heart of Iran’s nuclear enrichment program.
This attack on nuclear facilities in Iran and the escalation of geopolitical tensions in the Middle East raised market concerns. The VIX fear index, which measures volatility, rose 22% this morning, causing US indices to decline, with most stock prices trading in the red. In contrast, all sectors of the S&P 500 index are trading lower, with the exception of the energy sector, which rose 1.48%, benefiting from crude oil price increases that exceeded 10%. The technology sector led the sectoral losses, declining by approximately 1.92%, while the consumer discretionary sector declined by 1.85%, the financial sector declined by 1.33%, and the healthcare sector declined by 0.38%.
In terms of economic data, data released by the University of Michigan just moments ago showed a recovery in the preliminary reading of US consumer confidence for June, reaching 60.5 points, compared to 52.2 in May. Expectations had indicated a rise to 53.5, marking the highest reading for the index since February. The preliminary reading of inflation expectations for next year recorded a slight slowdown to 5.1% compared to 6.6% in May, reflecting reduced concerns about continued inflation increases in the United States. The Dow Jones Industrial Average (Dow) is trading down approximately (575) points at 42,391, with losses of approximately 1.34%, while the S&P 500 index recorded losses of 35 points at 6,008, with a decline of approximately 0.60%. The Nasdaq index fell by (170) points at 19,491, with losses of approximately 0.87%.