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US stock futures 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.
Dow Jones Industrial Average futures (YM=F) sank 0.5%, while those on the S&P 500 (ES=F) also fell 0.5%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also pulled back 0.6%.
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 topping $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, investors will get fresh insight into how the economy faring amid tariff uncertainty with the release of May retail sales data, due at 8:30 a.m. ET.
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.
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Investor optimism rolls over another geopolitical catalyst
Yahoo Finance’s Hamza Shaban writes in today’s Morning Brief newsletter:
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Citi calls time on gold rally amid slumping demand and Fed rate cuts
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:
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Good morning. Here’s what’s happening today.
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Trending tickers: T-mobile, Microsoft and solar stocks
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%.
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Solar stocks tumble after Senate changes to Trump’s tax megabill
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%.
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Gold prices continue to rise as investors seek safe-havens
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:
