Wall Street futures edge lower as Mideast conflict continues
June 17 (Reuters) - U.S. stock index futures edged lower on Tuesday as conflict in the Middle East entered its fifth day, dampening global investor confidence ahead of the Federal Reserve's upcoming policy meeting.
Iran and Israel's air war, which began on Friday when Israel attacked Iran's nuclear facilities, has raised concerns that the conflict could create bottlenecks for oil exports from the oil-rich Middle East.
U.S. energy stocks rose in premarket trading as oil prices remained elevated on the uncertainty. Shares of Chevron (CVX.N), opens new tab and Exxon (XOM.N), opens new tab were up nearly 1% each.
The surge in oil prices comes ahead of the Fed's monetary policy decision on Wednesday, when policymakers are widely expected to keep interest rates unchanged.
Money market moves show traders are pricing in about 48 basis points of rate cuts by the end of 2025, with a 59% chance of a 25-bps rate cut in September, according to CME Group's Fedwatch tool.
At 5:33 a.m. ET, Dow E-minis were down 269 points, or 0.63%, S&P 500 E-minis were down 37.25 points, or 0.62%. Nasdaq 100 E-minis were down 138.5 points, or 0.63%
U.S. Senate Republicans late on Monday unveiled proposed changes to President Donald Trump's sweeping tax-cut bill that had cleared the House of Representatives in May.
"The Senate's version of tax legislation looks broadly similar to the House-passed version in its near-term fiscal effects but would likely cost ... a few hundred billion dollars more over the next decade," said Goldman Sachs strategists in a note.
Solar stocks dipped after the Senate's changes to Trump's tax-cut bill revealed a phase-out of solar, wind and energy tax credits by 2028.
Shares of Enphase Energy (ENPH.O), opens new tab, which makes solar inverters, dropped 17%. Solar panel sellers Sunrun (RUN.O), opens new tab fell 27.5% and SolarEdge Technologies (SEDG.O), opens new tab dropped more than 21.6%. First Solar (FSLR.O), opens new tab lost nearly 11%.
Shares of nuclear power companies rose after the Senate extended credits for nuclear energy to 2036. Oklo (OKLO.N), opens new tab was up 1.9% and Nano Nuclear Energy (NNE.O), opens new tab rose 2.2%.
As investors flock to traditional safe-haven assets amid heightened geopolitical uncertainty, a rise in U.S. Treasuries pushed yields lower across the curve. Yields on the benchmark 10-year fell about 3 basis points to 4.42%.
Among other movers, Eli Lilly (LLY.N), opens new tab is in advanced talks to acquire gene editing startup Verve Therapeutics (VERV.O), opens new tab for up to $1.3 billion, according to a report. Shares of the drugmaker fell 1.2%, while Verve advanced 82.9%.
Key data for the day includes monthly retail sales and import prices scheduled at 08:30 a.m. ET.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
9 minutes ago
- The Independent
Starmer: US not poised to intervene in Middle East conflict
Sir Keir Starmer has played down the prospect of imminent US intervention in the Middle East after Donald Trump abruptly left a major global summit amid raging conflict between Israel and Iran. The Prime Minister said 'nothing' he had heard from the US president suggested Washington was poised to get involved as western leaders continue to press for de-escalation between the two long-time foes. Mr Trump departed the G7 conference in Canada a day early for 'big stuff' and urged Iranian citizens to evacuate Tehran, which triggered speculation that American forces might join Israel. Asked whether the US could get involved as the conflict threatens to spiral into all-out war, Sir Keir told reporters with him at the conference in Kananaskis: 'There is nothing the President said that suggests he's about to get involved in this conflict, on the contrary, the G7 statement was about de-escalation.' In a statement on Monday before Mr Trump's departure, leaders had reiterated their 'commitment to peace and stability' but stopped short of calling for a truce between Israel and Iran. The Prime Minister said the wording 'faithfully reflects' the discussions of allies around the table. 'I don't think anything that the President said either here or elsewhere suggests that,' he said when pressed on the prospect of imminent US involvement. 'I think that the statement really speaks for itself in terms of the shared position of everybody who was here at the G7.' The Prime Minister was asked whether Britain would potentially support the US if it took action to limit Iran's nuclear programme, which leaders have condemned. 'On nuclear, Iran's nuclear programme, I've been very clear. We are deeply concerned about the programme. I certainly do not want Iran to have a nuclear weapon,' he said. 'But the thrust of the statement is in accordance with what I was saying on the way out here, which is to de-escalate the situation, and to de-escalate it across the region rather than to escalate it.' Hours after signing the Middle East agreement, Mr Trump has suggested that he was not interested in a truce while also attacking French President Emmanuel Macron, who had told French media that the US leader was leaving early to negotiate a ceasefire. Asked whether he was disappointed in the apparent US move to act unilaterally in relation to the conflict amid concerns the G7 could be sidelined, Sir Keir played down divisions. He told reporters: 'I think what (the president) said was he wanted to go beyond a ceasefire effectively and end the conflict. 'And I think he's right about that. I mean, a ceasefire is always a means to an end.'
Reuters
15 minutes ago
- Reuters
White House 'MAHA' efforts need farm industry input, 250+ agriculture groups tell Trump administration
WASHINGTON, June 17 (Reuters) - More than 250 groups representing farmers, ranchers and agrochemical companies urged the Trump administration on Tuesday to seek their input on future activities of the Make America Healthy Again commission, after the body's first report pointed to pesticides as a possible health risk. The farm sector has been pushing for more involvement in the work of the commission, established by President Donald Trump in February and named for the social movement aligned with Health Secretary Robert F. Kennedy Jr. The commission is tasked with identifying the root causes of chronic disease, and Kennedy has pointed to highly processed food and chemicals like food dyes as contributing to poor health outcomes. The MAHA report released in May was produced without adequate input from the farm sector and as a result, "contained numerous errors and distortions that have created unfounded fears about the safety of our food supply," said the letter sent Tuesday morning to Kennedy, Agriculture Secretary Brooke Rollins and Environmental Protection Agency Administrator Lee Zeldin. "The MAHA Commission would benefit from inviting public comment and formally including representatives from food and agriculture in any future reports," said the letter. Its signatories included the American Farm Bureau Federation and trade groups for corn, soy, livestock and other farm products. The USDA, HHS and EPA did not immediately respond to requests for comment. Before the release of the MAHA report, the farm industry had pressed the administration not to mention pesticides, which industry groups say are critical tools for maintaining a competitive American farm sector. The report, whose errors included the citation of nonexistent studies, pointed to crop protection tools like pesticides and insecticides as possible contributors to negative health outcomes, but noted that agrochemicals are subject to robust EPA review. Trump directed the MAHA commission to produce a second report in August that contains a strategy for tackling childhood chronic disease. Rollins and Kennedy have been working together to advance other MAHA priorities, including urging states to bar junk food and sodas from the nation's largest food aid program and revising the dietary guidelines that make recommendations on what Americans should eat.
Reuters
16 minutes ago
- Reuters
US Transportation chief wants civil aviation to return to zero tariffs
PARIS/WASHINGTON, June 17 (Reuters) - U.S. Transportation Secretary Sean Duffy said on Tuesday that he wanted civil aviation to return to a 1979 zero-tariff trade agreement but noted it is part of broader trade talks. Speaking at the Paris Airshow, Duffy said the White House was aware that the U.S. is a net exporter in aerospace, but added that it was dealing with a complicated tariff situation. Airlines, planemakers and several U.S. trading partners have been lobbying Trump to restore the tariff-free regime under the 1979 Civil Aircraft Agreement that has yielded an annual trade surplus of $75 billion for the U.S. industry. "You look at what free trade has done for aviation. It's been remarkable for them. It's a great space of net exporters. And so the White House understands that but if you go over there and you see the moving parts of what they're dealing with, it is pretty intense and it's a lot," Duffy said. "I think we should take aviation off the negotiating table by going back to '79 and that only helps us. And to take some tools away from our trading partners would be beneficial to us." U.S. President Donald Trump has imposed tariffs of 10% on nearly all airplane and parts imports, and in early May the Commerce Department launched a "Section 232" national security investigation into imports of commercial aircraft, jet engines and parts that could form the basis for even higher tariffs on such imports. Aerospace companies and many countries have urged Trump not to impose new tariffs. Trump's executive order on a trade deal with the United Kingdom signed Monday includes tariff free treatment of airplanes and parts. GE Aerospace (GE.N), opens new tab CEO Larry Culp said the "U.S.-U.K. trade deal eliminating tariffs on the aerospace sector is a significant step forward in preserving the duty-free environment." He praised "the Trump Administration for recognizing the critical role aerospace plays in driving the U.S. economy and support this deal as a model for future trade agreements."
