US Stock Markets Plunge Amid Middle East Tensions and Air India Crash, Adobe Earnings Grab Attention

I summarized the economic news I saw on my way to work.

First, US stock futures dropped sharply due to the situation in the Middle East.

Israel carried out a large-scale airstrike on Iran, targeting military and nuclear facilities.

This caused international oil prices to spike, as the Middle East is a major oil-producing region, so any heightening tensions easily push prices up.

Iran is preparing drone and missile attacks in response, making the situation very tense.

In the stock market, Dow Jones futures fell 1.3%, and S&P 500 and Nasdaq 100 futures dropped 1.4% and 1.5%, respectively.

Investors became anxious as Middle East tensions escalated.

Previously, the concern was that President Trump's tariff policies might severely impact the economy, but now geopolitical risks have been added.

Funds flowed into safe-haven assets like gold and the Swiss franc, and the 10-year US Treasury yield fell.

A falling yield means bond prices rose, indicating increased risk aversion among investors.

Rising oil prices could push inflation higher, raising inflation concerns even more.

Another major news was the Air India passenger plane crash in India.

A Boeing 787-8 Dreamliner departing from Ahmedabad in western India crashed shortly after takeoff, killing more than 240 people.

Boeing's stock dropped over 4% on this news, and shares of engine supplier GE Aerospace and parts supplier Spirit AeroSystems also fell.

It's natural for related companies’ stocks to decline after a plane crash because of increased risk from the accident.

Adobe posted better-than-expected Q2 revenue and raised its full-year outlook, but its stock dipped slightly.

Thanks to AI, Adobe’s digital media segment continues to thrive, and it upgraded its 2025 revenue and earnings per share forecasts.

Finally, there is growing interest in the University of Michigan’s consumer sentiment index and inflation expectations, to be released today.

Consumer sentiment has fallen over recent months but is expected to recover slightly in June.

However, inflation expectations remain high, indicating that consumers are still worried about rising prices.

There are also suggestions that the impact of the Trump administration’s tariffs has not yet been fully reflected.

Overall, investor sentiment worsened due to Middle East military tensions and the tragic plane crash, creating a complex situation with soaring oil prices and safe-haven demand.

Although companies like Adobe with strong earnings stand out, these external factors are significantly affecting the market.

In the short term, volatility is likely to increase further due to geopolitical risks and inflation concerns.