Stock market today: Dow, S&P 500, Nasdaq slide as Trump shakes hopes for an Israel-Iran truce
US stocks retreated on Tuesday amid dwindling hopes for a quick resolution to Israel-Iran hostilities, as President Trump played down the prospect of a truce and air strikes continued.
The Dow Jones Industrial Average (^DJI) fell around 0.4%, while the benchmark S&P 500 (^GSPC) dipped roughly 0.3%. The tech-heavy Nasdaq Composite (^IXIC) also pulled back 0.3%.
Overall, US stocks have so far proved resilient amid the conflict. The major gauges ended higher on Monday after a report that Iran is seeking a ceasefire and return to nuclear program negotiations.
But Trump's overnight call for the evacuation of Iran's capital city amid a spike in Israel-Iran tensions has spooked markets worried about the risk of a descent into full-on regional war. The president's early exit from the G7 summit is also spurring fears of an escalation.
Early on Tuesday, Trump rejected the idea he was working on a Middle East pause in hostilities, as suggested by France's President Macron. It "certainly has nothing to do with a Cease Fire. Much bigger than that,' he posted on social media.
Pressed on what he was looking for, Trump said on Air Force One: "An end. A real end, not a ceasefire, an end." But the president did not provide more detail, including on next steps.
Oil prices jumped nearly 2% as investors weighed the stream of remarks, with Brent futures (BZ=F) rising to almost $75 a barrel and West Texas Intermediate (CL=F) crude hovering around $73.
At the same time, Wall Street is also grappling with concerns over Trump's trade policy and the direction of US interest rates.
As the date for lifting the pause on Trump's sweeping tariffs approaches, US officials have used the G7 summit to pursue trade deals. The first completed deal emerged Monday, when Trump and British Prime Minister Keir Starmer signed off on the US-UK trade pact agreed in May.
Read more: The latest on Trump's tariffs
Meanwhile, in the week's key data release, US retail sales fell 0.9% in May, more than economists expected, as consumers pulled back from a pre-tariff splurge.
Wall Street is looking to the Federal Reserve's two-day meeting that starts on Tuesday for clues to whether policymakers still want to cut interest rates twice in 2025, given recent signs of cooling inflation. The Fed is expected to hold rates steady in its decision on Wednesday.
US stocks slid on Tuesday as President Trump played down the prospect of a truce between Israel and Iran and retail sales came in below expectations.
The Dow Jones Industrial Average (^DJI) fell around 0.4%, while the benchmark S&P 500 (^GSPC) dipped roughly 0.3%. The tech-heavy Nasdaq Composite (^IXIC) also pulled back 0.3%.
Kraft Heinz (KHC) stock edged higher after the maker of Kool-Aid and Jell-O said it's eliminating synthetic dyes across the remaining 10% of its US portfolio that contains them.
Yahoo Finance's Brooke DiPalma reports that Kraft Heinz will replace artificial dyes with natural colors or reinvent items with new colors. The company will also refrain from launching new products that contain food additives.
This announcement comes amid growing scrutiny of food additives. Health and Human Services Secretary Robert F. Kennedy Jr. has said he wants to remove artificial coloring from the food supply by the time he leaves office.
Read more here.
The US Department of Defense announced Monday that it awarded OpenAI (OPAI.PVT) a $200 million contract to "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains."
"This contract is one of the largest Department of Defense contracts given to a software provider when measured by annual contract value," William Blair analyst Louie DiPalma wrote in a note to clients Monday.
DiPalma said that the "contract announcement could signal increased competition from OpenAI going forward" for Palantir (PLTR) "if OpenAI moves into Palantir's ontology territory." Ontology refers to an operational layer in Palantir's platform.
DiPalma noted that Palantir paved the way for OpenAI and others.
"Palantir has pioneered software providers serving as prime contractors for Department of Defense programs," DiPalma wrote. "Traditionally, software providers served as subcontractors to systems integrators. Under the new administration, the Department of Defense is looking to contract directly with commercial software providers when possible."
Palantir rose less than 1% on Tuesday.
In December, Palantir shares dropped as much as 5% when defense tech firm Anduril (ANIN.PVT) announced a partnership with OpenAI to "develop and responsibly deploy advanced artificial intelligence (AI) solutions for national security missions."
Retail sales fell in May, dragged down by declines in gas and auto purchases during the second month that a wide array of President Trump's tariffs were in effect.
Headline retail sales declined 0.9% in May, surpassing economists' expectations for a 0.6% decline month on month. By comparison, sales decreased 0.1% in April, according to revised Census Bureau data. A 2% decline in gasoline sales, a 3.5% slide in auto purchases, and a 2.7% decline in building materials drove the May headline number lower.
There was some positive news in the release: The control group in Thursday's release, which excludes several volatile categories and factors into the gross domestic product (GDP) reading for the quarter, rose 0.4%. That compares with a 0.1% decrease seen in April. Economists expected a 0.3% increase.
May sales, excluding auto and gas, declined 0.1%. Economists had expected a 0.3% rise. In April, sales excluding auto and gas rose 0.1%.
Reddit stock (RDDT) rose roughly 5% in premarket trading on Tuesday following the social media platform's release of new AI ad tools at the Cannes Lions festival for marketers on its platform.
Meanwhile, broader S&P 500 futures (ES=F) fell by 0.3%.
The gain follows Reddit's 6.8% jump Monday, after media reports spotlighted a recent analysis from data analytics firm Semrush, showing that Reddit is the second most cited website in Google AI overviews.
'Reddit may also perform well because Google has a partnership with Reddit and uses Reddit data to train its systems,' Semrush analyst Rachel Handley wrote in the June 9 analysis. Google announced its $60 million deal with Reddit last February.
Despite Reddit stock's climb this week, shares are far below their high of above $230 in February. The stock traded at around $131 before the market open Tuesday.
Yahoo Finance's Hamza Shaban writes in today's Morning Brief newsletter:
Read more here.
A standout record-setting rally in gold (GC=F) is about to peter out, Citigroup strategists said as they forecast a slide back below $3,000 an ounce for the precious metal in coming quarters.
Bloomberg reports:
Read more here.
Economic data: Retail sales (May); Industrial production (May); NAHB housing market index (June); Import price index (May)
Earnings: La-Z-Boy Incorporated (LZB)
Here are some of the biggest stories you may have missed overnight and early this morning:
Investor optimism has squashed another downbeat catalyst
Trump: EU not offering fair trade deal, Japan being 'tough' too
Trump says he wants 'real end' to conflict, not just ceasefire
Anne Wojcicki's 23andMe bid may not end DNA data lawsuit
How a prolonged Israel-Iran conflict could speed up Fed rate cuts
US solar stocks slammed after Senate changes to tax bill
Trump says he will probably extend TikTok deadline again
SoftBank sells T-Mobile stake for $4.8 billion to fund AI push
Here are some top stocks trending on Yahoo Finance in premarket trading:
T-Mobile US, Inc. (TMUS) stock fell 4% in premarket trading on Tuesday, after SoftBank Group Corp. (SFTBF, SFTBY) managed to raise $4.8B via the sale of T-Mobile US Inc. shares. The move is set to help fund Softbank's plans for artificial intelligence.
Microsoft (MSFT) stock fell over 1% before the bell today following reports that the Big Tech's relationship with OpenAI has become "strained." Per The Wall Street Journal, OpenAI executives are weighing the option of whether to accuse Microsoft of anticompetitive behavior, according to people familiar with the matter.
Solar stocks dropped in premarket trading Tuesday after Senate Republicans released a bill that would end tax credits for wind and solar earlier that other sources. The news caused SunRun Inc. (RUN) stock to drop by 28% and SolarEdge Technologies Inc. (SEDG) by 21%.
US solar stocks have tumbled after a Senate panel released proposals for an early and full phase-out of solar and wind energy tax credits on Monday.
The plan to remove credits by 2028 are among the several changes put forward by a Republican-controlled panel to President Trump's "big beautiful" tax and spending bill.
Shares of Enphase Energy (ENPH), which makes solar inverters, dropped 17% before the bell.
Meanwhile, solar panel seller Sunrun (RUN) tumbled 26%, while its peer SolarEdge Technologies (SEDG) sank more than 20%. First Solar (FSLR) pulled back 11%.
Gold (GC=F) prices rose higher Monday night as the ongoing Israel-Iran conflict pushed risk-averse investors into safer positions, such as gold as a haven asset.
Bloomberg reports:
Read more here.
US stocks slid on Tuesday as President Trump played down the prospect of a truce between Israel and Iran and retail sales came in below expectations.
The Dow Jones Industrial Average (^DJI) fell around 0.4%, while the benchmark S&P 500 (^GSPC) dipped roughly 0.3%. The tech-heavy Nasdaq Composite (^IXIC) also pulled back 0.3%.
Kraft Heinz (KHC) stock edged higher after the maker of Kool-Aid and Jell-O said it's eliminating synthetic dyes across the remaining 10% of its US portfolio that contains them.
Yahoo Finance's Brooke DiPalma reports that Kraft Heinz will replace artificial dyes with natural colors or reinvent items with new colors. The company will also refrain from launching new products that contain food additives.
This announcement comes amid growing scrutiny of food additives. Health and Human Services Secretary Robert F. Kennedy Jr. has said he wants to remove artificial coloring from the food supply by the time he leaves office.
Read more here.
The US Department of Defense announced Monday that it awarded OpenAI (OPAI.PVT) a $200 million contract to "develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains."
"This contract is one of the largest Department of Defense contracts given to a software provider when measured by annual contract value," William Blair analyst Louie DiPalma wrote in a note to clients Monday.
DiPalma said that the "contract announcement could signal increased competition from OpenAI going forward" for Palantir (PLTR) "if OpenAI moves into Palantir's ontology territory." Ontology refers to an operational layer in Palantir's platform.
DiPalma noted that Palantir paved the way for OpenAI and others.
"Palantir has pioneered software providers serving as prime contractors for Department of Defense programs," DiPalma wrote. "Traditionally, software providers served as subcontractors to systems integrators. Under the new administration, the Department of Defense is looking to contract directly with commercial software providers when possible."
Palantir rose less than 1% on Tuesday.
In December, Palantir shares dropped as much as 5% when defense tech firm Anduril (ANIN.PVT) announced a partnership with OpenAI to "develop and responsibly deploy advanced artificial intelligence (AI) solutions for national security missions."
Retail sales fell in May, dragged down by declines in gas and auto purchases during the second month that a wide array of President Trump's tariffs were in effect.
Headline retail sales declined 0.9% in May, surpassing economists' expectations for a 0.6% decline month on month. By comparison, sales decreased 0.1% in April, according to revised Census Bureau data. A 2% decline in gasoline sales, a 3.5% slide in auto purchases, and a 2.7% decline in building materials drove the May headline number lower.
There was some positive news in the release: The control group in Thursday's release, which excludes several volatile categories and factors into the gross domestic product (GDP) reading for the quarter, rose 0.4%. That compares with a 0.1% decrease seen in April. Economists expected a 0.3% increase.
May sales, excluding auto and gas, declined 0.1%. Economists had expected a 0.3% rise. In April, sales excluding auto and gas rose 0.1%.
Reddit stock (RDDT) rose roughly 5% in premarket trading on Tuesday following the social media platform's release of new AI ad tools at the Cannes Lions festival for marketers on its platform.
Meanwhile, broader S&P 500 futures (ES=F) fell by 0.3%.
The gain follows Reddit's 6.8% jump Monday, after media reports spotlighted a recent analysis from data analytics firm Semrush, showing that Reddit is the second most cited website in Google AI overviews.
'Reddit may also perform well because Google has a partnership with Reddit and uses Reddit data to train its systems,' Semrush analyst Rachel Handley wrote in the June 9 analysis. Google announced its $60 million deal with Reddit last February.
Despite Reddit stock's climb this week, shares are far below their high of above $230 in February. The stock traded at around $131 before the market open Tuesday.
Yahoo Finance's Hamza Shaban writes in today's Morning Brief newsletter:
Read more here.
A standout record-setting rally in gold (GC=F) is about to peter out, Citigroup strategists said as they forecast a slide back below $3,000 an ounce for the precious metal in coming quarters.
Bloomberg reports:
Read more here.
Economic data: Retail sales (May); Industrial production (May); NAHB housing market index (June); Import price index (May)
Earnings: La-Z-Boy Incorporated (LZB)
Here are some of the biggest stories you may have missed overnight and early this morning:
Investor optimism has squashed another downbeat catalyst
Trump: EU not offering fair trade deal, Japan being 'tough' too
Trump says he wants 'real end' to conflict, not just ceasefire
Anne Wojcicki's 23andMe bid may not end DNA data lawsuit
How a prolonged Israel-Iran conflict could speed up Fed rate cuts
US solar stocks slammed after Senate changes to tax bill
Trump says he will probably extend TikTok deadline again
SoftBank sells T-Mobile stake for $4.8 billion to fund AI push
Here are some top stocks trending on Yahoo Finance in premarket trading:
T-Mobile US, Inc. (TMUS) stock fell 4% in premarket trading on Tuesday, after SoftBank Group Corp. (SFTBF, SFTBY) managed to raise $4.8B via the sale of T-Mobile US Inc. shares. The move is set to help fund Softbank's plans for artificial intelligence.
Microsoft (MSFT) stock fell over 1% before the bell today following reports that the Big Tech's relationship with OpenAI has become "strained." Per The Wall Street Journal, OpenAI executives are weighing the option of whether to accuse Microsoft of anticompetitive behavior, according to people familiar with the matter.
Solar stocks dropped in premarket trading Tuesday after Senate Republicans released a bill that would end tax credits for wind and solar earlier that other sources. The news caused SunRun Inc. (RUN) stock to drop by 28% and SolarEdge Technologies Inc. (SEDG) by 21%.
US solar stocks have tumbled after a Senate panel released proposals for an early and full phase-out of solar and wind energy tax credits on Monday.
The plan to remove credits by 2028 are among the several changes put forward by a Republican-controlled panel to President Trump's "big beautiful" tax and spending bill.
Shares of Enphase Energy (ENPH), which makes solar inverters, dropped 17% before the bell.
Meanwhile, solar panel seller Sunrun (RUN) tumbled 26%, while its peer SolarEdge Technologies (SEDG) sank more than 20%. First Solar (FSLR) pulled back 11%.
Gold (GC=F) prices rose higher Monday night as the ongoing Israel-Iran conflict pushed risk-averse investors into safer positions, such as gold as a haven asset.
Bloomberg reports:
Read more here.
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