Rich Asplund
8 min read
In This Article:
The S&P 500 Index ($SPX) (SPY) Tuesday closed down -0.84%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.70%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -1.00%. June E-mini S&P futures (ESM25) are down -0.86%, and June E-mini Nasdaq futures (NQM25) are down -0.99%.
Stock indexes retreated Tuesday, and crude oil surged more than +4% as market sentiment turned negative after President Trump played down the chance of an Israel-Iran ceasefire. After leaving the G-7 meeting in Canada, President Trump said that he hasn't reached out to Iran for peace talks "in any way, shape or form" and that a "permanent end and not a ceasefire" to the nuclear dispute with Iran would be the goal.
Losses in stocks accelerated Tuesday afternoon as President Trump was set to meet his national security team, fueling speculation that the US may be on the verge of joining the attack against Iran. Israel said it will intensify its attacks on Tehran, and President Trump said he wants "unconditional surrender" from Iran.
Stock indexes were also undercut on Tuesday due to concerns about stagflation, following the weaker-than-expected US retail sales report and stronger-than-expected import price report. In addition, homebuilder sentiment slumped to a 2-1/2 year low.
US May retail sales fell -0.9% m/m, weaker than expectations of -0.6% m/m, and May retail sales ex-autos unexpectedly fell -0.3% m/m versus expectations of a +0.2% m/m increase.
The US May import price index ex-petroleum rose +0.2% m/m, stronger than expectations of +0.1% m/m.
US May manufacturing production rose +0.1% m/m, right on expectations.
The US June NAHB housing market index unexpectedly fell -2 to a 2-1/2 year low of 32, weaker than expectations of an increase to 36.
Hostilities between Israel and Iran entered a fifth day Tuesday with no signs of easing. Israel said it saw a drop-off in Iranian attacks on Tuesday, saying only "a few dozen" missiles had been launched since midnight compared with the hundreds seen over the weekend. Israel also said it is too early to assess the success of the current campaign in Iran, but strikes on the country's nuclear facilities are "deepening" every day.
So far, there's also been nocausedof the vital Strait of Hormuz that handles about 20% of the world's daily crude shipments, although navigational signals from over 900 vessels moving through the strait have been disrupted due to "extreme jamming" of signals from the Iranian port of Bandar Abbas, which caused a collision of two tankers Tuesday near the Strait of Hormuz.
