S&P 500 Extends Losses, VIX Spikes as Iran Strikes Back Against Israel

The S&P 500 (SPX) has extended its losses as the Israel-Iran conflict continues to escalate, risking a global crisis and the involvement of allies from both sides. Iran has retaliated against the initial attack on its nuclear and military facilities by launching a series of missile strikes against Israel, according to the Israel Defense Force (IDF) X account.

During times of geopolitical conflict, investors usually adapt a risk-off attitude, resulting in stocks being sold off. Volatility, as measured by the Volatility Index (VIX), tends to spike as well. That’s happening today with the VIX up by nearly 20%.

President Trump Urges Iran to “Make a Deal”

President Trump continues to pressure Iran for a deal to halt its nuclear program and said “JUST DO IT, BEFORE IT IS TOO LATE” in a Truth Social post this morning.

Meanwhile, not all stocks are going down. Defense stocks, like Lockheed Martin (LMT) and RTX (RTX), are both up by over 3% on Friday. Oil stocks, like Exxon Mobil (XOM) and Chevron (CVX), are also in the green as the conflict could disrupt oil supply chains and raise prices in the process.

The S&P 500 is down by 1.10% at the time of writing.