U.S. stock futures tumbled early Friday as geopolitical tensions flared following a large-scale Israeli airstrike on Iran. The move, which targeted multiple military and nuclear sites, sparked a sharp rally in oil prices and rattled investor confidence, contributing to a broad sell-off across markets.

Futures Decline Amid Geopolitical Jitters

By 3:45 a.m. ET, major U.S. index futures were deep in negative territory. Dow Jones futures sank 449 points (–1.3%), S&P 500 futures fell by 83 points (–1.4%), and Nasdaq 100 futures dropped 318 points (–1.5%). The sharp declines follow a recent market rally that had been driven by hopes of easing trade tensions and softer inflation data.

The latest developments in the Middle East added fresh uncertainty, with investors increasingly wary of the global economic impact of potential disruptions in oil supply and shipping routes.

Oil Prices Spike After Israeli Airstrike

Brent crude futures surged 5.7% to $73.32 per barrel, and U.S. West Texas Intermediate (WTI) jumped 6% to $72.13 per barrel—both reaching their highest levels in nearly five months.

Israel’s Defense Minister, Israel Katz, warned of imminent retaliatory drone and missile strikes from Iran following what was described as a preemptive attack. Iran responded by launching around 100 drones toward Israel, according to military sources. Iranian state media also reported the death of Revolutionary Guards Commander Hossein Salami and several nuclear scientists.

These developments prompted investors to seek safety in traditional havens. Gold prices rose, the Swiss franc strengthened, and the 10-year U.S. Treasury yield dropped to a one-month low.

Boeing Shares Sink Following Air India Disaster

Boeing (NYSE:BA) shares slid more than 4% after a devastating crash involving an Air India Boeing 787-8 Dreamliner in western India. The plane, bound for London, went down shortly after takeoff, killing over 240 people and causing extensive damage on the ground. A lone survivor was pulled from the wreckage.

Suppliers GE Aerospace (NYSE:GE) and Spirit AeroSystems (NYSE:SPR) also saw their stock prices drop in response to the crash. Investigations are underway to determine the cause of the disaster, the worst aviation incident in years.

Adobe Beats Expectations, Boosts Outlook

In corporate earnings, Adobe (NASDAQ:ADBE) topped expectations for its second fiscal quarter, reporting $5.87 billion in revenue—above the consensus estimate of $5.8 billion. The company raised its full-year guidance, citing strong performance in its digital media division and continued demand fueled by artificial intelligence tools.

Adobe now expects full-year adjusted EPS to range from $20.50 to $20.70, and revenue between $23.5 billion and $23.6 billion. Despite the upbeat results, shares dipped slightly in after-hours trading, as analysts noted the outlook fell short of the blockbuster results reported by peers like Oracle (NYSE:ORCL).

Consumer Sentiment Data on Tap

All eyes will now turn to the University of Michigan’s June consumer sentiment survey, due later today. Economists expect a modest recovery from recent lows, though inflation expectations remain elevated. The one-year inflation outlook is projected at 6.4%, reflecting ongoing concerns over the economic impact of new tariffs introduced by the Trump administration.