The US stock market indices fall after the Israeli attack to Iran

  • Israel attacks Iran during the night, pointing to nuclear officials and military sites.
  • Trump presses Iran to make a nuclear agreement, but the negotiations have probably ended.
  • Oil prices shoot more than 8%, which could boost upward inflation.
  • The Dow Jones opens 1% down, while US treasure yields rise.

Israel launched unilateral attacks against Iranian officials, military sites and nuclear facilities on Thursday night, hostilities that the Trump administration warned earlier this week, but said it was not involved. The strong increase in the expectations that they will launch missiles and drones in defense has pushed oil prices more than 8% on Friday, and US actions are being sold accordingly.

Some observers are already saying that the highest prices of oil could end the fall in inflation in the US that had been seen at the beginning of the year. On Thursday, JPMorgan published a research note saying that A total war could push oil prices up to $ 120 and Consumer Price Index (IPC) from the US to 5%.

The industrial average Dow Jones (Djia) and the Nasdaq Composite (Ixic) both quoted 1% down in response to Friday’s opening. The S&P 500 (SPX) was something better with a fall of -0.8%. The Dax in Germany and CAC 40 in France also lost more than 1% on Friday.

In contrast to the usual shelter in safe assets, the yields of the US Treasury bonds are higher instead of lower. The US oil and defense actions are also registering profits.

The president of the United States, Donald Trump, whose administration was prepared to continue conversations with Iranian officials on Sunday, pressed Iran to complete a peace agreement, but that seems less likely now. Iran’s Minister of Defense, Aziz Nasirzadeh, said in recent weeks If Israel launches attacks against Iran, US military bases in the region will be the objective.

The Dow Jones lidia with the repercussions of the Israeli attack to Iran

Of the 30 actions in the Dow Jones index, only five opened Friday with profits. These were Chevron (CVX), Merck (MRK), Verizon (VZ)JOhnson & Johnson (Jnj) and Apple (AAPL). The rest sold.

The index fell from Thursday’s closing just below 43,000 to open about 42,500. Visa (V) lost 4.6%, Sherwin-Williams (SHW) lost 3.9%, American Express (AXP) 2.1%sank, and Boeing (BA) lost 1.7%.

Credit card companies are also dealing with the repercussions of an article from the Wall Street Journal that says Walmart (WMT) and Amazon (AMZN) They are considering issuing stablcoins to counteract the credit card rates. Boeing is dealing with reports that the Indian government will probably land the entire Dreamliner 787-8 fleet in the country while investigating an Air India accident that occurred on Thursday.

Djia 1-Hour Chart

1 hour graphic of the Djia

Source: Fx Street

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