Stan Choe, AP Business Writer
NEW YORK (AP) – US stocks fell under the weight of another jump on Tuesday due to oil prices. It was to return to financial market shape after Wall Street appeared to have settled a bit on Monday about Israel’s fight against Iran.
The S&P 500 fell 0.8% following a signal that the Israeli-Iran conflict may be exacerbated and one of the major engines of the US economy is weakening. Swing sent Wall Street’s main health measure to where he returned almost the week.
The Dow Jones industrial average fell 299 points (0.7%), while the Nasdaq composite fell 0.9%.
The shares have sunk under increased pressure from oil prices registered in the latest seesaw move. The US crude oil benchmark barrel jumped to 4.3% to $74.84. International standard Brent Crude added 4.4% to $76.45 per barrel.
Their profits accelerated after President Donald Trump raised temperatures in Israel’s fight against Iran by asking for an “unconditional surrender!” He says on his social media platform, “We’re not going.”
Before that, Trump left the group of seven summits early, warning that people in Iran’s capital should be evacuated soon. It only took about eight hours from Trump’s proposal to a nuclear deal with Iran that it would remain “attainable” until he urged Tehran’s 9.5 million residents to escape their lives.
As Iran is a major producer of oil and sits in the narrow straits of Hormuz where many of the world’s crude lies through, the battle could raise prices of crude oil and gasoline. Past conflicts in the region have caused a surge in oil prices, but historically proven to be temporary after showing that they did not disrupt the flow of oil.
In many cases, rising oil prices can support stakes in companies in the solar industry, increasing the incentive to switch to alternative energy sources. However, solar power fell on Tuesday as it could phase out tax credits for solar, wind and other energy sources, which would change the Earth’s climate.
Enphase Energy fell 24%, with the first sun down 17.9%.
Treasury yields also fell in the bond market after it was reported that shoppers spent less on US retailers than economists had expected from last month. Such solid spending is one of the lynch pins, keeping the economy away from recession, but some of the May decline may just have returned to a more normal trend.
In April, some shoppers were rushing to buy cars to preempt Trump’s tariffs.
“Today’s data suggests that consumers are downshifting, but they haven’t criticised the brakes yet,” says Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management.
Wall Street’s winning side was Jabil, who jumped 8.9% after reporting profits in the most recent quarter than analysts expected. CEO Mike Dastoor credited the strength from the accelerated demand associated with artificial intelligence technology.
Verve Therapeutics rose 81.5% after Eli Lilly said he would buy a company developing genetic drugs for cardiovascular disease in a billion-dollar deal worth up to $1.3 billion if certain conditions were met. Lily’s inventory fell by 2%.
The S&P 500 lost 50.39 points at 5,982.72. The Dow Jones industrial average fell from 299.29 to 42,215.80, while the Nasdaq composite sinks from 180.12 to 19,521.09.
All measures have happened as the Federal Reserve launched a two-day meeting on interest rates. A nearly unanimous expectation among traders and economists is that the Fed will not move.
The Fed is hesitant to lower interest rates and has been put on hold this year after cutting at the end of last year. Because they are waiting to see Trump’s tariffs hurt the economy and raise inflation. Inflation has remained relatively tame lately, with the Fed’s target approaching 2%.
More important to financial markets on Wednesday is perhaps the latest set of forecasts Fed officials will release for the economy and where interest rates are headed over the next few years.
In the bond market, the 10-year Treasury yield eased from 4.46% to 4.38% in the second half of Monday.
In overseas stock markets, indexes fell through much of Europe after being mixed in Asia.
Tokyo’s Japan 225 Index rose 0.6% after the Bank of Japan chose to keep its key interest rates changed. It gradually raises the rate from near zero, reducing Japanese government bond purchases, and helps counter-inflation.
AP Business Writer Elaine Kurtenbach contributed.
Original issue: June 17, 2025 10:35am EDT
