India fires missiles on Pakistan. Islamabad calls it an 'act of war'

ISLAMABAD (AP) — Pakistan said Wednesday it will avenge those killed by India's missile strikes that New Delhi called retaliation for last month’s massacre of Indian tourists in India-controlled Kashmir. Pakistan called the strikes an act of war and claimed it downed several Indian fighter jets.

The missiles killed 31 people, including women and children, in Pakistan-administered Kashmir and the country’s Punjab province, Pakistan's military said. The strikes targeted at least nine sites “where terrorist attacks against India have been planned,” India’s Defense Ministry said. Two mosques were hit.

Pakistani Prime Minister Shehbaz Sharif said his country would avenge the dead but gave no details, fanning fears of all-out conflict between the nuclear-armed rivals. Already, it’s their worst confrontation since 2019, when they came close to war.

A heavy exchange of fire continued to follow the missile strikes, and officials in each country confirmed people killed. Sharif commended the armed forces for shooting down five Indian jets, which he said were hit after they fired their missiles but while still in Indian airspace.

There was no comment from India, but three planes fell onto villages in India-controlled territory, according to police and residents.

Tensions have soared between the neighbors since the April attack in which gunmen killed 26 people, mostly Indian tourists. Some survivors told Indian media that gunmen in some cases singled out Hindu men and shot them at close range.

India accuses Pakistan of being behind the attack, which was claimed by a militant group calling itself Kashmir Resistance. India has said the group is linked to Lashkar-e-Taiba, a disbanded Pakistani militant group that New Delhi long accused of being backed by Pakistan.

Islamabad denies involvement.

India and Pakistan have fought two of their three wars over the Himalayan region of Kashmir, which is split between them and claimed by both in its entirety.

In the wake of the massacre, the rivals have expelled each other’s diplomats and nationals, closed their borders and shuttered airspace. India has also suspended a critical water-sharing treaty with Pakistan.

“Pakistan has every right to give a robust response to this act of war imposed by India, and a strong response is indeed being given,” the prime minister said, and later accused India of acting out of arrogance.

The country's National Security Committee said Pakistan reserves the right to respond “in self-defense, at a time, place and manner of its choosing.”

The statement said the strikes were carried out “on the false pretext of the presence of imaginary terrorist camps” and said they killed civilians. The prime minister said he had attended the funeral of a 7-year-old boy.

South Asia analyst Michael Kugelman said the strikes were some of the highest-intensity ones from India on its rival in years and that Pakistan’s response would “surely pack a punch as well.”

“These are two strong militaries that, even with nuclear weapons as a deterrent, are not afraid to deploy sizeable levels of conventional military force against each other,” Kugelman said. “The escalation risks are real."

In 2019, the countries came close to war after a Kashmiri insurgent rammed an explosive-laden car into a bus carrying Indian soldiers, killing 40. India responded with airstrikes.

U.S. President Donald Trump called the escalating conflict “so terrible” and urged both sides to stop the violence.

U.N. Secretary-General Antonio Guterres called for maximum restraint because the world cannot “afford a military confrontation” between India and Pakistan, according to spokesperson Stephane Dujarric.

Neighboring China also called for calm. Beijing is the largest investor in Pakistan by far and has multiple border disputes with India, including one in the northeastern part of the Kashmir region.

Several Indian states held civil defense drills Wednesday to train civilians and security personnel to respond in case of attack. Indian Prime Minister Narendra Modi postponed his upcoming trip to Norway, Croatia and the Netherlands.

The missile strikes hit six locations and the dead included women and children, said Pakistan’s military spokesperson, Lt. Gen. Ahmed Sharif.

Officials said another 57 people were injured, and five more people were killed in Pakistan during exchanges of fire later in the day along the Line of Control, which divides Kashmir between India and Pakistan.

Sharif late Wednesday said the exchanges of fire continued.

In Muzaffarabad, the main city of Pakistan-controlled Kashmir, resident Abdul Sammad said he heard several explosions as blasts ripped through houses. He saw people running in panic, and authorities immediately cut power to the area.

“We were afraid the next missile might hit our house,” said Mohammad Ashraf, another resident.

Indian jets damaged infrastructure at a dam in Pakistan-administered Kashmir, according to Sharif, the military spokesman, calling it a violation of international norms.

The strikes also hit close to at least two sites previously tied to militant groups that have since been banned, according to Pakistan.

One hit Subhan Mosque in Punjab’s Bahawalpur city, killing 13 people, according to Zohaib Ahmed, a doctor at a nearby hospital.

The mosque is near a seminary that was once the central office of Jaish-e-Mohammed, a militant group outlawed in 2002. Officials say the group has had no operational presence at the site since then.

Another missile hit a mosque in Muridke in Punjab, damaging it. A building located nearby served as the headquarters of Lashkar-e-Taiba until 2013, when Pakistan banned the militant group and arrested its founder.

India’s Defense Ministry called the strikes “focused, measured and non-escalatory in nature," adding that “no Pakistan military facilities have been targeted.”

Indian politicians from various political parties praised the operation, which was named “Sindoor,” a Hindi word for the vermilion powder worn by married Hindu women on their foreheads and hair. It was a reference to the women whose husbands were killed in front of them in the Kashmir attack.

Indian police and medics said 12 civilians were killed and at least 40 wounded by Pakistani shelling in Poonch district near the highly militarized de facto border. At least 10 civilians were also injured in Kashmir’s Uri sector, police said.

Shortly after India’s strikes, aircraft fell in three villages: two in India-controlled Kashmir, a third in India's own Punjab state.

Debris from one plane was scattered across one village, including in a school and a mosque compound, according to police and residents.

“There was a huge fire in the sky. Then we heard several blasts also,” said Mohammed Yousuf Dar, a resident of Wuyan village in India-controlled Kashmir.

Another aircraft fell in an open field in Bhardha Kalan village. Resident Sachin Kumar said he heard massive blasts and saw a huge ball of fire. He said he and several others rushed to the scene, where they saw Indian soldiers carry away the pilots.

A third aircraft crashed in a field in Punjab, a police officer told The Associated Press, speaking on condition of anonymity because they were not authorized to speak to the media.

This story has been updated to correct that all three planes did not fall in India-controlled Kashmir. Two fell in India-controlled Kashmir, while a third fell in India's Punjab state.

Saaliq and Roy reported from New Delhi, and Hussain reported from Srinagar, India. Associated Press writers Ishfaq Hussian in Muzaffarabad, Pakistan; Babar Dogar in Lahore, Pakistan; Asim Tanveer in Multan, Pakistan; Huizhong Wu in Bangkok and Seung Min Kim in Washington contributed to this story.

National Cadet Corps members participate during a mock drill to train civilians and security personnel to respond in case of attack, in Guwahati, India, Wednesday, May 7, 2025 amid rising fears of wider conflict following India's strikes in Pakistan. (AP Photo/Anupam Nath)

A girl who lives in a village near the Line of Control between India and Pakistan, and was wounded during shelling by Pakistan is treated at a hospital in Uri, Indian controlled Kashmir, Wednesday, May 7, 2025. (AP Photo/Nasir Kachroo)

People are escorted to a safe place during a security mock drill at a mall in Ahmedabad, India, Wednesday, May 7, 2025, amid rising fears of wider conflict following India's strikes in Pakistan. (AP Photo/Ajit Solanki)

National Disaster Response Force team members carry out a mock drill in a market to train civilians and security personnel to respond in case of attack, in New Delhi, India, Wednesday, May 7, 2025. (AP Photo/Manish Swarup)

Fire brigade workers and paramedics participates in a security mock drill at a mall in Ahmedabad, India, Wednesday, May 7, 2025, amid rising fears of wider conflict following India's strikes in Pakistan. (AP Photo/Ajit Solanki)

Civil defense members carry out a mock drill at a metro station to train civilians and security personnel to respond in case of attack, in New Delhi, India, Wednesday, May 7, 2025. (AP Photo/Manish Swarup)

Volunteers carry a body after recovering it from the rubble of a mosque building damaged by a suspected Indian missile attack near Muzaffarabad, the capital of Pakistan controlled Kashmir, on Wednesday, May 7, 2025. (AP Photo/M.D. Mughal)

Debris of an aircraft lie in the compound of a mosque at Pampore in Pulwama district of Indian controlled Kashmir, Wednesday, May 7, 2025. (AP Photo/Dar Yasin)

People read morning newspapers leading with the story of India firing missiles into Pakistani territory, in Karachi, Pakistan, Wednesday, May 7, 2025. (AP Photo/Fareed Khan)

A woman looks at a part of an aircraft which landed in the compound of a mosque at Pampore in Pulwama district of Indian controlled Kashmir, Wednesday, May 7, 2025. (AP Photo/Dar Yasin)

Protesters burn an Indian flag during a demonstration condemning Indian missile strikes, in Hyderabad, Pakistan, Wednesday, May 7, 2025. (AP Photo/Pervez Masih)

Ambulances leave from a complex near the site of a suspected Indian missile attack, in Muridke, a town in Pakistan's Punjab province, Wednesday, May 7, 2025. (AP Photo/K.M. Chaudary)

Indian army officer Colonel Sofiya Qureshi addresses a press conference after India struck multiple sites inside Pakistani controlled territory with missiles under Operation Sindoor, in New Delhi, India, Wednesday, May 7, 2025. (AP Photo/Manish Swarup)

Local residents stand outside a mosque of an Islamic seminary partially damaged by a suspected Indian missile attack, outskirts of Bahawalpur, Pakistan, Wednesday, May 7, 2025. (AP Photo/Asim Tanveer)

Fire fighters douse smoke coming out from the debris of an aircraft near Akhnoor on the outskirts of Jammu, India, Wednesday, May 7, 2025. (AP Photo/Channi Anand)

Protesters chant slogans during a demonstration to condemn Indian missile strikes, in Hyderabad, Pakistan, Wednesday, May 7, 2025. (AP Photo/Pervez Masih)

Indian Air Force soldiers arrive at Pampore in Pulwama district of Indian controlled Kashmir, Wednesday, May 7, 2025. (AP Photo/Dar Yasin)

Rescue workers recover a body from a damaged building at the site of a suspected Indian missile attack, in Muridke, a town in Pakistan's Punjab province, Wednesday, May 7, 2025. (AP Photo/K.M. Chaudary)

Debris of an aircraft lie in the compound of a mosque at Pampore in Pulwama district of Indian controlled Kashmir, Wednesday, May 7, 2025. (AP Photo/Dar Yasin)

Army soldiers stand guard at a mosque building damaged by a suspected Indian missile attack near Muzaffarabad, the capital of Pakistan controlled Kashmir, on Wednesday, May 7, 2025. (AP Photo/M.D. Mughal)

Rescue workers and an ambulance arrive at the site of a suspected Indian missile attack, in Muridke, a town in Pakistan's Punjab province, Wednesday, May 7, 2025. (AP Photo/K.M. Chaudary)

Rescue workers enter a building near the site of a suspected Indian missile attack, in Muridke, a town in Pakistan's Punjab province, Wednesday, May 7, 2025. (AP Photo/K.M. Chaudary)

EDS NOTE: GRAPHIC CONTENT - In this photo released by the Inter Services Public Relations, a woman injured in a suspected Indian missile attack, receives treatment at a hospital in Bahawalpur, Pakistan, May 7, 2025. (Inter Services Public Relations via AP)

Local residents examine a building damaged from a suspected Indian missile attack near Muzaffarabad, the capital of Pakistan controlled Kashmir, in Wednesday, May 7, 2025. (AP Photo/M.D. Mughal)

Security force officials stand outside a damaged building at a site of a suspected Indian missile attack near Muzaffarabad, the capital of Pakistan controlled Kashmir, in Wednesday, May 7, 2025. (AP Photo/M.D. Mughal)

Indian students walk home after attending school near international border India Pakistan at Jora farm village, in Ranbir Singh Pura about 35 kilometers (22 miles) from Jammu, India, Tuesday, May 6, 2025. (AP Photo/Channi Anand)

Indian children walk on bunker near India - Pakistan International border at in Jora farm village, in Ranbir Singh Pura about 35 kilometers (22 miles) from Jammu, India, Tuesday, May 6, 2025. (AP Photo/Channi Anand)

Indian child walk on bunker near India - Pakistan International border at in Jora farm village, in Ranbir Singh Pura about 35 kilometers (22 miles) from Jammu, India, Tuesday, May 6, 2025. (AP Photo/Channi Anand)

NEW YORK (AP) — Stocks of credit-card companies are tumbling on Monday after President Donald Trump threatened moves that could eat into their profits. The rest of Wall Street, meanwhile, was showing only modest signals of concern after tensions ramped to a much higher degree between the White House and the Federal Reserve.

The S&P 500 edged down by 0.1% from its all-time high as U.S. stocks drifted through mixed morning trading, while prices for gold and other investments that tend to do well when investors are nervous rose. The value of the U.S. dollar also dipped against the euro and other currencies amid concerns that the Fed may have less independence in setting interest rates to keep inflation under control.

The Dow Jones Industrial Average was down 179 points, or 0.4%, as of 10 a.m. Eastern time, and the Nasdaq composite was nearly unchanged.

Some of the market's sharpest drops came from credit-card companies, as Synchrony Financial, Capital One Financial and American Express all fell between 4% and 7%. They sank after Trump said he wanted to put a 10% cap on credit-card interest rates for a year. Such a move could eat into profits for credit card companies.

But it was a separate move by Trump that was grabbing more attention on Wall Street. Over the weekend, the Federal Reserve's chair, Jerome Powell, said the U.S. Department of Justice subpoenaed the Fed and threatened a criminal indictment over his testimony about renovations underway at its headquarters.

With an unusual video statement released on Sunday, Powell said his testimony and the renovations are “pretexts” for the threat of criminal charges, which is really “a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.”

The Fed has been locked in a feud with the White House about interest rates. Trump has been loudly calling for lower interest rates, which would make borrowing cheaper for U.S. households and companies and could give the economy a kickstart.

The Fed did cut its main interest rate three times last year and has indicated more cuts may be arriving this year. But it’s been moving slowly enough that Trump has nicknamed Powell “Too Late.”

In a brief interview with NBC News Sunday, President Donald Trump insisted he didn’t know about the investigation into Powell. When asked if the investigation is intended to pressure Powell on rates, Trump said, “No. I wouldn’t even think of doing it that way.”

Powell’s term as chair ends in May, and Trump administration officials have signaled that he could name a potential replacement this month. Trump has also sought to fire Fed governor Lisa Cook.

The Fed has traditionally operated separately from the rest of Washington, making its decisions on interest rates without having to bend to political whims. Such independence, the thinking goes, gives it freedom to make unpopular moves that are necessary for the economy’s long-term health.

Keeping interest rates high, for example, could slow the economy and frustrate politicians looking to please voters. But it could also be the medicine needed to get high inflation under control.

In the bond market, the yield on the 10-year Treasury ticked up to 4.19% from 4.18% late Friday. A less independent Fed and higher inflation in the long term could also erode the value of the U.S. dollar, and it slipped 0.3% against the euro and 0.4% against the Swiss franc.

In stock markets abroad, indexes rose across much of Europe and Asia. Stocks jumped 1.4% in Hong Kong and 1.1% in Shanghai for two of the world’s bigger gains following reports that Chinese leaders were preparing more help for the economy.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Traders work on the floor at the New York Stock Exchange in New York, Friday, Jan. 9, 2026. (AP Photo/Seth Wenig)

James Lamb works on the floor at the New York Stock Exchange in New York, Friday, Jan. 9, 2026. (AP Photo/Seth Wenig)

Specialist Anthony Matesic works on the floor of the New York Stock Exchange, Thursday, Jan. 8, 2026. (AP Photo/Richard Drew)

Daniel Kryger works on the floor at the New York Stock Exchange in New York, Friday, Jan. 9, 2026. (AP Photo/Seth Wenig)

Dealers watch computer monitors near the screens showing the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Monday, Jan. 12, 2026. (AP Photo/Lee Jin-man)

A dealer walks near the screens showing the foreign exchange rate between U.S. dollar and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Monday, Jan. 12, 2026. (AP Photo/Lee Jin-man)

Dealers talk near the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Monday, Jan. 12, 2026. (AP Photo/Lee Jin-man)

A dealer walks near the screens showing the foreign exchange rates at a dealing room of Hana Bank in Seoul, South Korea, Monday, Jan. 12, 2026. (AP Photo/Lee Jin-man)