Dow Drops on Fresh Middle East Tensions

• US stocks fell on Friday following reports of a potential Iranian attack against Israel.
• Fears of an escalation of tensions in the Middle East sent oil prices higher and interest rates lower.
• Investors also digested the first batch of first-quarter earnings, and they weren’t impressed.

US stocks sold off on Friday, with the Dow Jones Industrial Average dropping by nearly 500 points amid fears of a possible Iranian attack against Israel.

US intelligence reports indicated thata potential attack against Israel by Iran or its proxies was imminent within the next few days. The reports, which was confirmed by a US official, specified that a potential drone strike against Israel could target “possibly on Israeli soil” rather than Israeli interests outside of the country. 

Such an attack would come shortly after Israel launched a missile strike that killed seven Iranian military personnel in Syria.

Fears of an escalation of tensions in the Middle East sent oil prices higher and bond yields lower. 

Investors also digested the first batch of first-quarter earnings results, and they weren’t impressed. Mega-banks JPMorgan, Wells Fargo, and Citigroup all reported better than expected results, but saw significant sell-offs in their stocks, with JPMorgan falling more than 6%. 

Here’s where US indexes stood at the 4:00 p.m. closing bell on Friday: 

Here’s what else happened today: 

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil jumped by 0.49% to $85.44 a barrel. Brent crude, the international benchmark, climbed 0.48% to $90.17 a barrel. 
• Gold fell 0.57% to $2,359.40 per ounce. 
• The 10-year Treasury yield dropped 6 basis points to 4.52%. 
• Bitcoin declined by 4.50% to $66,874.