Markets plunged early Friday, June 13, 2025, after Israel launched a wave of airstrikes on Iran, sending oil prices soaring and sparking a broad sell-off in equities.
The Dow dropped more than 600 points at the open. Meanwhile, crude oil futures surged more than 8%, gold climbed, and defense stocks jumped. How the markets will continue to react in the hours and days ahead remains to be seen.
While conflict is obviously a tragedy for those directly involved, it also functions as a wake-up call for investors as they attempt to determine what it means for their money.
Defense and energy surge
Shares of Lockheed Martin, RTX, and Northrop Grumman rallied as investors moved toward companies tied to military readiness. Chevron, ConocoPhillips, and other energy firms also spiked as oil crossed $74 a barrel.
In moments like this, markets often reward businesses positioned to profit from disruption — even when the broader tone is one of fear.
Investors who had exposure to defense or oil have already seen gains. For others, the move serves as a reminder that traditional “safe havens” aren’t limited to cash or gold — some sectors thrive in uncertainty.
Reexamining sector balance could be smart if your portfolio is leaning too heavily on growth or tech.
Big Tech falters
Nvidia, Tesla, and other high-flying stocks that helped drive the recent rally slipped as risk appetite waned.
These companies remain long-term plays, but their valuations are vulnerable when markets seek safety.
If you’ve been putting most of your money into tech stocks, this could be a time to think about how you want to spread out future investments.
Flight to safety
The dollar strengthened. Bond prices rose slightly — a typical move when investors seek safer places to park their money. Gold gained. (To learn more about gold investing, see As Gold Nears All-Time Highs, 3 Things You Need to Know.)
These are familiar patterns during geopolitical shocks, but they also signal what investors value during instability: liquidity, predictability, and tangible assets.
Many are investing in defense exchange-traded funds (ETFs), with over $8 billion flowing in already this year, according to Reuters.
Steady ahead
For everyday investors, the takeaway isn’t to make knee-jerk trades. It’s to stay grounded and revisit your long-term plan.
Defensive sectors may hold up better if tensions persist. Energy prices could remain high, while growth stocks may soon feel more pressure.
Understanding how different parts of your investments respond to global events can help you stay focused and avoid reacting out of fear.
In a shifting market, confidence comes not from constant moves but from knowing why you’re invested in the first place.
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