Nasdaq 100 and S&P500: Oil News Lifts Energy, Defense Shares, Drags Down Travel and Tech Stocks

Oil and Defense Stocks Surge in Pre-Market as Israel Strikes Iran

Energy and defense shares surged in pre-market trading Friday following a wave of Israeli airstrikes on Iran, sparking fears of wider conflict in the Persian Gulf and driving crude prices sharply higher. The attack, confirmed to have occurred without U.S. support, injected fresh geopolitical risk into global markets, pushing traders toward safe havens and away from travel and consumer stocks.

Futures tied to the Dow Jones Industrial Average fell over 460 points. S&P 500 and Nasdaq 100 futures dropped 0.9% and 1.1%, respectively. Brent crude jumped 7.7% to $74.65, and WTI spiked 8% to $73.52. Gold rose more than 1%, and the U.S. dollar advanced on haven demand.

How Are Oil Stocks Reacting Before the Bell?

Energy stocks were among the top early movers. Chevron rose nearly 3%, ConocoPhillips advanced over 4%, and EOG Resources gained more than 3%. The spike in crude comes as traders weigh the risk of supply disruptions in the Gulf. OPEC+’s recent production boost may soften the blow, but risk premiums have returned to the oil market, boosting interest in upstream producers.

Which Defense Stocks Are Leading the Pre-Market Gains?

Defense names climbed on expectations of heightened military activity and increased global defense spending. Northrop Grumman and RTX rallied more than 4% each, Lockheed Martin added 3.5%, and L3Harris Technologies rose 2.2%. The strike marks the most significant Israeli military action against Iran in decades, increasing the likelihood of prolonged regional instability.

Why Are Travel Stocks Sliding?

Travel and leisure stocks were broadly lower. United Airlines dropped more than 5%, while Delta, American, and Southwest Airlines lost between 2% and 4%. Cruise operators like Carnival and Royal Caribbean fell over 3%, and hotel groups including Hilton and Marriott slipped more than 2%. Concerns center on higher fuel costs and potential disruptions to international travel should tensions escalate further.

What Are Traders Watching Heading Into the Open?

The pre-market futures trade suggests a sharp risk-off tone at the open. Traders are focused on potential Iranian retaliation and further price movement in crude. Energy and defense sectors could continue leading if volatility persists.

This morning’s preliminary University of Michigan consumer sentiment data will also be closely watched to assess how consumers are responding to inflation and geopolitical headlines.

More Information in our Economic Calendar.