Dow drops after US airstrike on Iranian general

The Dow Jones Industrial Average plunged Friday morning in response to the U.S. killing of Iran’s top military commander, Maj. Gen. Qassem Soleimani, in Baghdad.

The Dow fell more than 360 points at the open, though it then cut its losses and was down around 200 points, CNBC reports.

U.S. crude oil futures jumped about 3.5 percent to $63.31 per barrel. 

“Global oil markets will be volatile for weeks to come,” Greg Valliere, chief U.S. policy strategist at AGF Investments, told the network.

“There’s a reason, finally, for caution in the stock market,” he added.

The Cboe Volatility Index, considered to be the best gauge of fear on Wall Street, rose about 2 points to 14.77.

Defense stocks also saw an uptick, with Boeing, Lockheed Martin, Northrop Grumman and Raytheon all going up.

US defense stocks rise as tensions with Iran increase #Soleimani pic.twitter.com/1He4zTMjNn

— Marcus Weisgerber (@MarcusReports) January 3, 2020