Wall Street ended sharply lower on Friday after Iran launched missiles at Israel in response to intensive Israeli strikes aimed at crippling Tehran's ability to build nuclear weapons.

Market Snapshot

The Dow Jones Industrial Average fell 769.83 points, or 1.79%, to 42,197.79, the S&P 500 lost 68.29 points, or 1.13%, to 5,976.97 and the Nasdaq Composite lost 255.66 points, or 1.3%, to 19,406.83.

Market Movers

Circle, the stablecoin company, rose 25% on Friday. Wall Street's appetite for companies that trade or invest in digital assets is hearty -- or at least certainly growing: Circle listed on June 5; crypto brokerage firm eToro on May 14; and Galaxy Digital, the crypto investment firm run by Michael Novogratz, listed on the Nasdaq on May 16.

Oracle stock rose over 7% on Friday. Oracle has a rosy outlook ahead, according to BMO Capital Markets. The bank upgraded the cloud computing stock to an outperform rating from market perform. Analyst Keith Bachman accompanied the move by lifting his price target to $235 from $200. Bachman’s revised price target implies an upside of nearly 18% ahead.

Shares in oil companies were rising as Israel's attack on Iran sent crude prices surging. Occidental Petroleum was up 3.8%, Diamondback Energy gained 3.7%, and Schlumberger rose 1.9%. Chevron, meanwhile, added 0.7%, and Exxon Mobil rose 2.2%.

Defense contractors traded higher, too. Lockheed Martin rose 3.7%, Northrop Grumman gained 4%, RTX Corp. rose 3.3%, and L3Harris Technologies was up 2.7%.

Airline and cruise line stocks declined as the gain in oil prices raised concern the cost of fuel for planes and ships will take off. United Airlines fell 4.4%, while the cruise company Carnival was down 5%.

Adobe stock fell 5.3% even though the company reported fiscal second-quarter earnings and revenue that beat analysts' estimates and raised its fiscal-year guidance as artificial intelligence boosted demand. Management boosted its forecast of adjusted earnings for the year by 20 cents to a range of $20.50 to $20.70 a share. It said it anticipates revenue of $23.5 billion to $23.6 billion, up from prior guidance of $23.3 billion to $23.55 billion.

Shares of electric-vehicle maker Tesla were up 1.9%. The stock declined 2.2% on Thursday after President Donald Trump signed a joint resolution of Congress to eliminate California's ability to regulate its air emissions. While California is expected to challenge that move in court, it puts at risk sales of so-called regulatory credits the company receives because its all-electric fleet exceeds government targets.

Boeing declined 1.7% after ending Thursday's session down 4.8% following the crash of an Air India plane carrying 242 passengers and crew near the western Indian city of Ahmedabad.

Visa fell 5% and Mastercard tumbled 4.6% after The Wall Street Journal reported Walmart and Amazon.com have considered issuing their own stablecoins, a move that could siphon money away from traditional payments providers.

Advanced Micro Devices fell 2%. The semiconductor company announced its latest artificial-intelligence chips as it looks to compete with Nvidia, the market leader. AMD Instinct MI350 series would deliver four times more performance than the company's prior MI300X model. Nvidia, meanwhile, was down 2.1%.

Shares of Oracle extended gains after they rose 13% to a record high Thursday following quarterly earnings that beat estimates. The enterprise software company said it expected its cloud infrastructure growth rate to jump to more than 70% in fiscal 2026. Oracle was up 7.7% to $215.22.

Fiscal first-quarter earnings at RH, the high-end furniture chain, rose to 40 cents a share from a year-earlier loss of 20 cents as revenue jumped 12% to nearly $814 million. RH said it expects second-quarter revenue growth of 8% to 10%. Shares were up 6.9%.

Chime Financial fell 6.3% to $34.79, a day after the digital bank made its trading debut. The stock opened Thursday at $43, 59% higher than its initial offering price of $27, and ended the session up 37% at $37.11.

Market News

Iran Launches New Retaliatory Wave at Israel as Conflict Widens

Iran fired hundreds of ballistic missiles against Israel following an unprecedented direct attack on its nuclear facilities, ramping up a conflict between sworn enemies that threatens to engulf the Middle East and disrupt global oil supplies.

Multiple waves of missiles targeting Israeli cities amount to the most forceful step yet by Tehran since Israel’s overnight raids killed top Iranian generals and badly damaged key military infrastructure.

Israel said it identified missiles launched from the Islamic Republic and reported explosions from interceptions and falling debris from incoming projectiles. There was dramatic video footage of at least one large explosion in Tel Aviv, and reports of explosions over Jerusalem.

Trump Submits Proposed Security Agreement for US Steel Sale

President Donald Trump formally opened the door to approving Nippon Steel Corp.’s purchase of United States Steel Corp., the latest milestone in the long-running saga over the sale of an iconic American firm.

The Trump administration submitted a proposed national security agreement to the companies on Friday and amended former President Joe Biden’s move to block the deal, according to an executive order published by the White House on Friday.