Weekly Dow Wrap: DJIA Falls 770 Points on Rising Tensions and Oil Pressuring Stocks
The Dow Jones is down 1.32% as a result of geopolitical flare-ups in the Middle East that have rekindled global market anxieties.
Quick overview
- Geopolitical tensions in the Middle East have led to a significant decline in the Dow Jones, which fell 1.79% amid investor fears.
- Oil prices surged over 6% as the market reacted to potential supply disruptions from the escalating conflict.
- Despite the overall market decline, the S&P 500 and NASDAQ showed some resilience by holding near key support levels.
- Investor sentiment remains cautious as uncertainty around geopolitical developments and monetary policy continues to loom.
Live DOW Chart
The Dow Jones is down 1.32% as a result of geopolitical flare-ups in the Middle East that have rekindled global market anxieties. This has caused investors to relocate to safe-haven assets and cause a steep selloff in stocks, while oil prices are rising in the midst of the uncertainty.
Geopolitical Tensions Shake Markets as Oil Rises and Dow Slips
Markets opened Friday under heavy pressure following a series of Israeli airstrikes across Iran overnight. The attack reportedly killed several senior Iranian military officials, escalating already fraught regional tensions. Iran has yet to issue a direct response, but investors are bracing for potential retaliation. Israel has declared its intention to maintain military pressure, and former U.S. President Donald Trump weighed in with vocal support, calling the operation “excellent” and warning, “there’s more to come, a lot more.”
Oil Jumps as Middle East Risk Premium Returns
Crude oil prices spiked on the geopolitical turmoil, although they remain off their intraday highs. West Texas Intermediate (WTI) crude surged over 6% on the day, trading above $73, as investors priced in potential supply disruptions. The oil market remains volatile, with risk premiums rising quickly as the situation in the Middle East develops.
Dow Leads Equity Decline as Risk-Off Sentiment Grows
U.S. equity markets closed sharply lower, led by the Dow Jones Industrial Average, which plunged 1.79%. The index was rejected again by resistance near the 20-week SMA, while the 50-week SMA continues to act as a support floor. This technical squeeze signals indecision, with the Dow stuck in a narrowing range amid uncertainty.
Despite the slide, the S&P 500 and NASDAQ Composite held near key short-term support levels, highlighting that dip buyers are still selectively active, albeit more cautiously. Their ability to hold those lines may become critical if volatility persists next week.
Friday Closing Summary – June 13
Dow Jones Industrial Average
- Declined 769.83 points or -1.79% to close at 42,197.79
- Ended below its key 200-day moving average of 42,502.38 and the 100-day MA at 42,233.09
- Technical break suggests weakening momentum and rising downside risks in the near term
S&P 500 Index
- Lost 68.29 points or -1.13%, finishing at 5,976.97
- Briefly dipped below its 100-hour moving average of 5,964.44, with an intraday low of 5,963.21
- However, it rebounded slightly into the close, maintaining a technically constructive posture above key short-term support
NASDAQ Composite
- Dropped 255.66 points or -1.30% to end at 19,406.83
- The index tested its rising 100-hour moving average at 19,390.24, dipping as low as 19,367.42
- Closed back above that support level, signaling resilience among large-cap tech stocks despite selling pressure
Weekly Performance Snapshot
- Dow Jones: Fell -1.32% over the week
- S&P 500: Declined -0.39%
- NASDAQ: Lower by -0.63%
Looking Ahead: Volatility and Policy in Focus
This week’s pullback reflects broader investor unease as markets contend with technical resistance, heightened geopolitical risk, and a murky monetary policy outlook. With Middle East tensions spiking and the Federal Reserve’s next move still unclear amid mixed inflation data, the balance between risk-taking and safe-haven positioning remains fragile.
Whether the current retreat proves to be a short-term breather or the beginning of a broader correction will depend heavily on geopolitical developments and central bank signaling over the coming days.
Dow Jones Live Chart
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