4:21pm: Israel-Iran conflict intensifies
US stocks closed lower as hopes that conflict between Israel and Iran could be resolved quickly were dashed amid reports that the US is contemplating military actions against Iran, with President Trump demanding the country “unconditionally surrender.”
The Nasdaq dropped 0.9% at 19,521 points while the S&P 500 shed 0.8% at 5,982 points and the Dow Jones fell 0.7% or about 300 points to 42,215 points.
Oil prices popped as the conflict rages on, with crude oil up 4.7% above $75 per barrel.
3:50pm: Proactive news headlines
ReconAfrica has raised C$19 million through an upsized public offering to fund the drilling of its Kavango West 1X exploration well in Namibia’s Damara Fold Belt. Northern Superior Resources is expanding its presence in Quebec’s Chibougamau Gold Camp by acquiring three properties from TomaGold Corporation. Seeing Machines received a US$1.2 million contract from a North American autonomous vehicle company to deploy its backup driver monitoring system, prompting Stifel to reaffirm its ‘buy’ rating. US Gold Corp has appointed Ken Murray of Captrics Consulting to oversee final study phases and execution planning for its CK Gold Project in Wyoming. Lisata Therapeutics has extended its AI-driven partnership with GATC Health to boost the development of its certepetide drug candidate. Gunnison Copper Corp is advancing work programs at its Gunnison Project in Arizona on time and under budget, aiming to improve economics ahead of a pre-feasibility study. Spanish Mountain Gold reported promising drill results at its flagship B.C. project, including a 100.49-meter intercept grading 0.49 g/t gold in a strategic step-out hole.
3:10pm: Coinbase explored stock trading
Coinbase Global Inc (NASDAQ:COIN) is seeking approval from the United States Securities and Exchange Commission (SEC) to offer tokenized stock trading to the crypto exchange’s US users.
In an interview with Reuters, Coinbase’s chief legal officer Paul Grewal said that the company wishes to offer “tokenized equities,” equities represented by digital tokens.
Tokenized equities, such as stocks, are currently not available to be traded in the US. It is argued by proponents that tokenized equities can reduce trading costs, accelerate settlements, and support 24/7 trading.
If approved, Coinbase would be able to facilitate stock trading using blockchain technology, positioning itself to compete directly with retail brokerage firms like Robinhood and Charles Schwab.
2:20pm: Stocks on the move
Sunrun Inc shares plunged 42% as solar stocks broadly tumbled following a U.S. Senate panel’s proposal to phase out solar and wind tax credits by 2028. Chevron Corporation is entering the lithium sector with the acquisition of two leasehold positions in Texas and Arkansas, echoing ExxonMobil’s domestic lithium push. Northern Superior Resources is expanding in Quebec’s Chibougamau Gold Camp through a deal to acquire three properties from TomaGold Corporation. T-Mobile US Inc shares dropped 4.5% after SoftBank sold 21.5 million shares in a $4.9 billion block trade, reducing its stake to 5.6%. Lisata Therapeutics has deepened its AI-focused partnership with GATC Health to enhance the development of its certepetide drug candidate.
1:15pm: Middle East jitters weigh
Stocks were still under water on Tuesday afternoon as renewed tensions in the Middle East and softer economic data gave investors pause.
The Dow fell 0.4%, while both the S&P 500 and Nasdaq slipped 0.5%.
Markets were rattled by geopolitical concerns after President Trump demanded an “unconditional surrender” from Iran, dimming hopes for a ceasefire with Israel and heightening global uncertainty. On the economic front, weaker-than-expected retail sales pointed to a possible cooling in consumer spending — one of the economy’s key drivers.
Tech stocks, which have been leading the market higher, took a breather. Giants like Microsoft, Apple, and Tesla edged down, though Nvidia and a few other chipmakers held on to small gains. In commodities, oil prices jumped nearly 2% as tensions in the Middle East pushed up crude. But it was a rough day for solar stocks, which slid after reports that Congress might roll back tax incentives for renewable energy.
12:20pm: Industrial production unexpectedly declines
U.S. industrial production slipped 0.2% in May, marking the third monthly decline so far this year and underscoring ongoing weakness in the sector. On an annual basis, output rose just 0.6%, signaling subdued momentum.
The drop was led by a 2.9% decline in utilities output, the third drop in four months. Mining edged up 0.1%, while manufacturing — the largest component of industrial production — rose a modest 0.1%, recovering only slightly from April’s 0.5% drop.
Within manufacturing, motor vehicle and parts production jumped 4.9%, helping offset declines in fabricated metals and machinery. Gains in non-durable goods such as textiles and paper were limited.
Wells Fargo analysts noted that ongoing trade policy uncertainty continues to weigh on business investment. “Continued uncertainty around where trade policy will ultimately land is preventing many businesses from taking on new capital expenditures,” the firm said. “We expect manufacturing to continue to tread water in the months ahead.”
11:45am: Escalating tensions weigh on stocks
Escalating geopolitical tensions in the Middle East are pressuring global equity markets while lifting energy prices, according to Axel Rudolph, Senior Technical Analyst at IG.
“US President Trump leaving the G7 meeting in Canada early, downplaying a ceasefire between Israel and Iran and warning Tehran residents to evacuate has dampened risk sentiment,” said Rudolph.
The heightened risk of further conflict has fueled concerns over potential disruptions to oil supply, sending crude and natural gas prices up by 2.5% to 3%. Meanwhile, gold extended its losses from earlier in the week, though silver prices gained ground, supported by a slightly firmer U.S. dollar.
“The risk of escalation in the Middle East pressures stock indices while the oil price rises,” Rudolph added.
11:10am: Eli Lilly makes moves
Eli Lilly and Co (NYSE:LLY) is moving to acquire Verve Therapeutics in a deal worth up to $1.3 billion.
Verve is developing a gene therapy aimed at lowering cholesterol, potentially to be used alongside existing treatments.
Eli Lilly is looking to bolster its pipeline of genetic medicines through this acquisition.
Verve’s approach to long-term cholesterol control through gene editing complements Lilly’s strategy of expanding into innovative biotechnologies.
10:35am: Retail sales weak
May’s weaker-than-expected retail sales data suggests consumer sentiment is finally aligning with actual spending, according to Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management.
“Weak consumer spending this morning finally shows a connection between soft data and hard data,” he noted, pointing to the 0.9% decline in headline retail sales and the softer-than-expected core sales figures.
While Zaccarelli acknowledged this could be a one-off, he warned that if consumer weakness persists, it could trigger job losses and a broader economic slowdown. He added that elevated market valuations, unresolved trade issues, and geopolitical tensions are contributing to heightened volatility and risk.
9.55am: Wall Street opens lower
US stocks have opened lower, with the Dow Jones down 0.3%, the S&P 500 dropping 0.4%, the Nasdaq falling 0.5% and the small cap Russell 2000 softening 0.6%.
Biggest fallers on the Dow are Nike, Merck, Verizon and P&G, with risers led by Chevron.
On the S&P, there were big declines for solar companies Enphase Energy and First Solar, down 24% and 19% respectively, after the Senate released a domestic policy bill with big cuts to renewable support.
US retail sales data also emerged, with a sharp fall in May as consumers pulled back after a sharp increase in spending in March to get ahead of President Trump’s tariffs.
Retail sales fell 0.9% month on month, worse than the 0.6% consensus forecast.
Core retail sales were down 0.3%, when a 0.2% rise was expected.
8am: Dow and Nasdaq called lower after Trump’s Tehran evacuation call
The major US stock indexes are predicted to open lower on Tuesday, as markets switch to a risk-off mode after Donald Trump told Iran that “everyone should immediately evacuate” the capital Tehran, as Israel’s bombardment continued.
Futures for the S&P 500, Dow Jones and Nasdaq are all down around 0.5% with an hour and a half to go to Tuesday’s opening bell.
A stock sell-off at the end of last week had been followed by a rally at the start of this week, following a re-evaluation of the Israel-Iran fighting, sending the Nasdaq 1.5% higher, while the S&P 500 added 0.9% to climb back above 6,030 and the Dow Jones rose 0.8%.
President Trump left the G7 leaders summit in Alberta, Canada early, while Israel and Iran meanwhile traded missile and drone strikes for a fifth day.
Other leaders indicated that a ceasefire offer had been made, with reports suggesting Iran is open to talks.
Trump denied he was pursuing a ceasefire and said his early departure from the summit was due to something “much bigger” than discussing a ceasefire, while Israeli PM Netanyahu said on Monday his country was “not backing down” from eliminating Iran’s nuclear programme.
Early this morning, he sent an update, adding that he has “not reached out to Iran for ‘peace talks’ in any way, shape, or form” but added that “they know how to reach me”.
Oil prices, having last week rallied from recent four-year lows to their highest levels since February, pulled back yesterday but this morning are climbing again. WTI futures are up 2% to near $73.2 a barrel.
Market analyst Kathleen Brooks at XTB said: “It is difficult to sum up the general mood in the markets on Tuesday. European stocks are extending losses as we move through the European morning session, and US equity market futures also point to a lower open.”
Oil price gains were a sign of risk aversion taking hold once more, she said, though the gold price is only moderately higher despite President Trump’s abrupt departure from the G7 and rebuffing of ceasefire talks suggesting that “things could be about to escalate in this conflict”.
“This has spooked financial markets on Tuesday morning,” she said.
In company news, Verve Therapeutics shares were up 76% premarket as Eli Lilly was reported to be in advanced takeover discussions about a deal potentially worth up to $1.3 billion.
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