New York City, New York — U.S. stock futures experienced a notable decline Thursday night following airstrikes by Israel on Iranian targets. The announcement from Israel’s defense minister, Israel Katz, reinforcing a state of emergency, contributed to market anxieties that affected trading.

The futures linked to the Dow Jones Industrial Average dropped by 611 points, marking a fall of nearly 1.4%. Similarly, the S&P 500 futures lost about 1.6%, while the Nasdaq 100 futures followed suit, also falling by 1.6%. This downturn reflects investors’ apprehensions regarding escalating geopolitical tensions.

On the ground, two U.S. officials clarified that there would be no American involvement or assistance related to the Israeli military actions. This statement aimed to mitigate concerns among traders about U.S. entanglement in foreign conflicts and the potential implications for the market.

As a direct response to the unfolding situation, Brent crude oil futures surged over 7%, pairing sharply with a similar rise in West Texas Intermediate crude futures, which also boosted by 7%. Rising oil prices often trigger broad concerns among investors about inflation and economic stability.

Earlier in the trading day, the major indexes saw slight gains. The Dow Jones and Nasdaq Composite each recorded modest increases of 0.2%, while the S&P 500 edged up nearly 0.4%. This upward momentum came after a favorable producer price index report for May, which showed a lesser-than-expected increase of 0.1%, signaling easing inflationary pressures.

However, lingering worries about U.S. tariff policies cast a shadow over the market’s potential gains. Treasury Secretary Scott Bessent hinted at the possibility of extending the current 90-day tariff pause for key trading partners if negotiations showed “good faith.” In contrast, President Donald Trump raised alarms by indicating a willingness to impose unilateral tariffs against various countries, adding to traders’ concerns.

Despite these setbacks, the stock market has shown resilience this week, with the S&P 500 up around 0.8% and the Nasdaq Composite not far behind with an expected 0.7% gain. The Dow is also on track for a 0.5% increase, indicating a potential third consecutive week of positive performance for all three major indexes.

Investors are now awaiting the June preliminary reading of the University of Michigan’s consumer sentiment report, which could provide further insight into economic trends and consumer confidence going forward.