Market Update
On May 13, 2026, traders were engaged at the New York Stock Exchange, navigating a challenging trade environment marked by rising oil prices and disappointing earnings from two major companies affecting the overall stock market.
The S&P 500 futures saw a modest increase of 0.2%, while Nasdaq 100 futures remained steady. In contrast, Dow Jones Industrial Average Futures led the upward movement with a rise of approximately 0.4%. However, in regular market transactions, the Dow experienced a decline of over 500 points, which is around 1%, representing the fifth negative day within a six-day period for both the S&P 500 and Nasdaq. This marked the most significant one-day drop since stocks fell 1.2% and 2.2% on June 23.
Amid this backdrop, U.S. President Donald Trump has indicated he would soon make a decision regarding a “massive attack” on Iran, as tensions escalate in the Middle East, particularly in the Red Sea region.
In an interview, he noted that the planned attack would be unprecedented in scale, asserting that Iran “hasn’t suffered enough yet.” He stated, “We’re considering a large-scale attack—larger than we’ve ever had before. We’re getting closer to making a decision. We’re ready.”
Meanwhile, U.S. forces have been actively targeting Iranian positions for the last two weeks, executing 13 consecutive night strikes.
On the European front, stock markets opened the day positively, reflecting a rise in investor sentiment across the continent. The pan-European Stocks 600 index increased by 0.2%. Although the London FTSE 100 remained unchanged, the French CAC 40 gained 0.1%, and Germany’s index saw an increase of 0.4%.
Conversely, Asian markets closed down, particularly with Korean stocks leading the declines, as the Kospi index fell by more than 5.7%, while Japan’s Nikkei Stock Average saw a decrease of 2.7%. The Australian benchmark S&P/ASX 200 also fell by 0.75%.
Oil prices have reached a significant milestone, with Brent crude oil futures climbing over $100 a barrel for the first time since late May. After spiking around 7% on Thursday, prices adjusted to around $96.88 on Friday, while West Texas Intermediate futures settled at approximately $88.96.
Adam Turnquist, chief technical strategist at LPL Financial, commented, “While the current situation doesn’t ensure further rises in oil prices, it suggests that the market has entered a phase that could be sensitive to supply surprises.” He added that a slight deterioration in supply expectations could provoke a notable price reaction, especially when sentiment is so bearish.
Earnings reports from Tesla and Alphabet also had a negative impact on market performance. Tesla’s stock dropped nearly 15% after the company reported second-quarter earnings that fell short of expectations—its worst daily performance since March 10, 2025. Alphabet’s decision to increase its full-year capital spending forecast led to a 7% loss for the tech giant, marking the largest single-day decline since May 7, 2025.
The market movements on Thursday have set the stage for anticipated weekly declines, with the Dow and S&P 500 down 0.8% and 0.7%, respectively. The Nasdaq lagged further with a decline of 1.5%.
