Stock Market News Review: SPY, QQQ Sink amid Israel-Iran Escalation, Weak Retail Sales Data
Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) closed in red territory as the Israel-Iran conflict drags into its fifth day. On Tuesday, President Trump convened a National Security Council meeting in order to discuss the turmoil. According to Axios, Trump is ' seriously considering ' launching an attack on Iran's nuclear facilities. The U.S. has also beefed up its defensive measures by sending planes and aircraft carriers to the Middle East.
Confident Investing Starts Here:
The SPX and NDX opened the trading session lower after May's retail sales data showed a 0.9% month-over-month (MoM) fall, lower than the estimate for a 0.6% drop. Core retail sales, which exclude volatile items like gas, cars, and building materials, rose by 0.4% MoM, ahead of the estimate for a 0.3% rise.
The lower opening comes despite the U.S. and UK finalizing their trade deal reached last month. Under the deal, tariffs on the first 100,000 UK vehicles imported to the U.S. will be set at 10%, down from 27.5%, while the U.S. baseline tariff on imported UK goods will remain in place. In the meantime, both sides will continue to negotiate steel, aluminum, and pharmaceutical tariffs. The market's muted reaction to the signed deal is likely due to the fact that it contained no new material developments compared to the initial deal.
Meanwhile, sentiment among single-family homebuilders is on the decline. June's Housing Market Index (HMI) tallied in at 32, the lowest reading since December 2022 and below the estimate for 36. A reading above 50 signals that most surveyed homebuilders feel confident about the current and near-term housing landscape.
The main market catalyst in the short-term remains the Israel-Iran conflict. In a Truth Social post, Trump demanded ' UNCONDITIONAL SURRENDER ' from Iran and said that the U.S. knows where Supreme Leader Ayatollah Ali Khamenei is hiding but will refrain from targeting him.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
26 minutes ago
- Bloomberg
Pakistan's Army Chief Set to Meet Trump Amid Iran Tensions
By and Faseeh Mangi Updated on Save President Donald Trump is expected to meet Pakistan's army chief for talks as the US considers supporting Israeli airstrikes on Iran — a partner of the government in Islamabad. The lunch meeting between Trump and Pakistan's Asim Munir is scheduled to take place at 1 p.m. Washington time Wednesday in the White House Cabinet Room, according to the president's daily public schedule. It would be the first of its kind with a high-ranking Pakistani official since Trump returned to the White House.
Bloomberg
34 minutes ago
- Bloomberg
European Gas Rises for Sixth Day With Hormuz Traffic in Focus
European natural gas prices extended gains for a sixth day, the longest streak in almost four weeks, as the conflict between Israel and Iran raises concerns over vessel traffic via the Strait of Hormuz, a key energy trade route. Benchmark futures gained as much as 1.4% on Wednesday, approaching €40 a megawatt-hour, a level last seen in early April.
Yahoo
41 minutes ago
- Yahoo
Trump meets with military leaders over Iran, after PM insists he wants peace
Donald Trump met with top military advisers over Israel's conflict with Iran, just hours after Sir Keir Starmer insisted the US President was interested in de-escalating the fighting. Mr Trump met with his National Security Council in the White House's situation room shortly after a series of sabre-rattling social media posts, and following his abrupt exit from the G7 summit in Canada. After the high-level meeting, news reports soon followed that the US President was considering joining in Israel's strikes on Iran. Sir Keir earlier 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. But Mr Trump then suggested Iran's supreme leader Ayatollah Ali Khamenei was an 'easy target' whom the US could 'take out' if it chose. Writing on his Truth Social platform, Mr Trump said: 'We know exactly where the so-called 'Supreme Leader' is hiding. 'He is an easy target, but is safe there – We are not going to take him out (kill!), at least not for now. 'But we don't want missiles shot at civilians, or American soldiers. Our patience is wearing thin.' Without further explanation he also wrote 'UNCONDITIONAL SURRENDER!' on the platform. And he suggested the US had 'complete and total control of the skies over Iran'. Mr Trump spoke to Israel's Prime Minister Benjamin Netanyahu on Tuesday, according to a White House official. Israeli military spokesman Brigadier General Effie Defrin said strikes were taking place around Tehran early on Wednesday after planes had targeted missile launch and storage facilities on Tuesday night. Air raid sirens have been heard in parts of Israel while the US State Department announced it was closing the embassy in Jerusalem for the rest of the week. Iran's Revolutionary Guard said the latest attacks included the use of a hypersonic Fatah missile, while Israel claimed it had killed General Ali Shadmani who it described as Iran's most senior remaining military commander. Mr Trump left the G7 conference in Canada a day early to deal with what he called 'big stuff' and urged Iranian citizens to evacuate from Tehran, which triggered speculation that American forces might join Israeli strikes. 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 reiterated their 'commitment to peace and stability' but stopped short of calling for a truce between Israel and Iran. In Westminster, not long after the American president's social media posts, Defence Secretary John Healey suggested Mr Trump was 'leading the calls' for a diplomatic solution to the conflict. Speaking at the Royal United Services Institute's land warfare conference in central London, Mr Healey said British Typhoon fighter jets could be used to help the UK's allies in the region. He said: 'The deployment of Typhoons and other military assets the Prime Minister has announced are part of the moves to reinforce de-escalation in the region, to reinforce security in the region, and may also be used to help support our allies.' Elsewhere, Israel's ambassador to the UK, Tzipi Hotovely, told LBC her country is 'absolutely not' intending to institute regime change in Iran. 'We are in this military operation for one reason, to defend Israel, to defend the region, to defend the world and to make sure that Iran won't have nuclear capabilities,' she added.
