Wall Street's VIX Jumps 10%, Gold And Oil Gain As Middle East Tensions Flare Up: What's Driving Markets Friday?

U.S. stocks retreated Friday as geopolitical tensions erupted following Israel's surprise airstrike on Iranian nuclear sites, sparking a sharp rally in oil and gold.

Crude futures surged to $77 a barrel overnight before easing to $72.24 by midday—still up 5% on the session—as fears grew over potential disruptions in the Strait of Hormuz, a key artery for global oil flows.

Equity volatility spiked, with the CBOE Volatility Index (VIX) – also known as the market “fear index” – rocketed 10% by midday, yet trimming an even bigger jump at the open.

Gold climbed past $3,430 an ounce, rising over 1% and putting record highs near $3,500 into potential target. The U.S. dollar halted the bleeding as risk sentiment deteriorated globally.

President Donald Trump said he had given Iran a 60-day ultimatum "to make a deal," adding they may now have a "second chance." A scheduled U.S.-Iran meeting on Sunday is uncertain.

Israeli Prime Minister Benjamin Netanyahu confirmed the strikes would continue until Iran's nuclear threat is removed, while Tehran vowed retaliation.

Meanwhile, U.S. consumer sentiment rebounded strongly in June to 60.5 from 52.2, beating expectations. One-year inflation expectations dropped to 5.1% from 6.6%.

Despite the risk-off mood, longer-dated Treasury yields rose by 8 basis points—an unusual move suggesting persistent concerns around U.S. fiscal risks. The iShares 20+ Year Treasury Bond ETF TLT sunk 1.6%, its worst session in over three weeks.

Bitcoin BTC/USD slipped 0.6% to $105,000, suffering as risk sentiment fades.

Friday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF VOO fell 0.6% to $551,57.
• The SPDR Dow Jones Industrial Average DIA fell 1.4% to $424.53.
• The tech-heavy Invesco QQQ Trust Series QQQ eased 0.7% to $529.92.
• The iShares Russell 2000 ETF IWM dropped 1.2% to $210,28.
• The Energy Select Sector SPDR Fund  XLE outperformed, up 1.2%; the Financials Select Sector SPDR Fund XLF lagged, down 1.7%.

Friday’s Stock Movers

• Oracle Corp. ORCL jumped 7.2% after delivering stronger-than-expected earnings, extending its weekly gain to 23% and on track for its best week since 2001.
• Adobe Inc. ADBE fell 6% despite topping Wall Street estimates, as investors focused on signs of slowing growth.
• Payment giants Visa Inc. V and Mastercard Inc. MA dropped more than 4% each after Amazon.com Inc. AMZN and Walmart Inc. WMT unveiled plans to issue stablecoins.
• Defense contractors Lockheed Martin Corp. LMT, RTX Corp. RTX, and L3Harris Technologies Inc. LHX gained 3.4%, 3.1%, and 2.4%, respectively.

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Image created using artificial intelligence via Midjourney.