I'm Jessica Ettinger. CNBC Wall Street

opens Friday morning after a stock

sell-off on worries that the US war with

Iran is dramatically escalating, oil

spiking. Investors are dumping tech

shares on concern there's some

overspending on AI. The Dow was down 506

points off its low, down 1% Thursday,

led lower by shares of Google parent

Alphabet down 7%. Amazon down 4 and 1/2%

on Thursday.

The S&P 500 index was down 90 points,

1.2%.

The Nasdaq down 553

points. That was more than 2%. Among the

chip names, really only Micron was in

the green. It was up 3%. Everybody else

was in the red. There are companies

whose shares hit fresh all-time highs

Thursday, including Travelers, Quest

Diagnostics, railroads, CSX, Norfolk

Southern, Union Pacific, plus General

Dynamics, Packard, and United Rentals.

And higher in after-hours trading on

Thursday, Intel, it reported strong

quarterly results after the closing

bell. Shares were up on initial

reaction. CNBC's Rick Santelli notes

that financial markets might be getting

a little tired of a dragged-out Iran

war.

>> All the uncertainty of chapter two in

this Mideast war, significantly

different than chapter one. Chapter one,

before the MOU, was, you know, we're

looking at more optimistic endings. That

isn't the case anymore, and interest

rates are on the rise.

>> The yield on the 10-year Treasury

hitting its highest since President

Trump took office in January of 2025,

topping 4.7%,

and with that 10-year Treasury yield at

its highest in a year and a half,

mortgage rates popped on Thursday.

Mortgage News Daily says the average

rate on a 30-year fixed home loan hit

6.85%,

the highest in more than a year, since

June of 2025. US crude oil topping $92 a

barrel Thursday, more than $20 a barrel

above where it was before the US sent

missiles into Iran back in February.

Brent crude, the world's benchmark,

topping $100 a barrel Thursday.

>> I didn't think we'd get back above that

90 end of things, but clearly, uh

there's a lot of people on the lower end

of the income scale that are very

sensitive to that. You know, you see oil

at $100, gasoline's going to be

meaningfully higher. I'm going to start

to worry. If we see $100 oil for any

length of time, that's going to be a

problem for consumers.

>> Wells Fargo's Scott Wren on CNBC.

Meantime, AAA says American drivers are

paying more at the pump again. The

national average for a gallon of regular

now $4.09

a gallon. American Airlines CEO Robert

Isom telling CNBC's Phil LeBeau that air

fares are higher, but people are paying

it and the cost is worth it.

>> You have raised your fares. They're up,

I think, anywhere between 15 and 20%

year-over-year. Or do you think there's

potential even more in fare increases?

>> Well, we have 60% of the revenue on the

books for the third quarter, and we see

record revenue performance, but we're

giving our customers the reason to buy

up. A better customer experience, a

network that gets them to where they

want to go, leading in loyalty, and

really making sure that they have the

ability to buy up.

>> Now, over at Southwest, its CEO Bob

Jordan wouldn't tell Phil whether air

fares will continue to go up.

>> You mentioned that you have some room to

move higher for fares if need be.

>> I'm not going to talk about future

pricing. I think the real point is that

uh fares have moved quite a bit here in

the second quarter with fuel up. I think

the main point is that we've seen no

resistance to to higher fares. Demand is

incredibly strong.

>> On Friday's watch list, we get earnings

from American Express and Verizon, and

we get new home sales numbers for June.

You can get details on these stories and

much more at cnbc.com.

I'm Jessica Ettinger, CNBC.