US Stocks Slip Amid Geopolitical Tensions, Weak Retail Sales, and Fed Policy Watch

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: REUTERS/Andrew Kelly/File Photo

U.S. stock markets opened lower Tuesday as investors reacted to rising geopolitical tensions in the Middle East, disappointing retail sales data, and anticipation ahead of this week’s Federal Reserve policy meeting. Meanwhile, Wall Street digested news of a trademark filing by JPMorgan Chase that signals growing interest in cryptocurrency markets.

The Dow Jones Industrial Average fell 128.10 points (-0.3%) to 42,386.99, the S&P 500 slipped 18.26 points (-0.3%) to 6,014.85, and the Nasdaq dropped 85.12 points (-0.43%) to 19,616.09 as of 9:40 a.m. ET. Oil prices climbed 1.37% to $72.75 per barrel, while the yield on the 10-year U.S. Treasury note dipped to 4.426%.

Geopolitical Uncertainty: Israel-Iran Conflict Escalates

Market sentiment remained fragile following President Donald Trump’s abrupt departure from the Group of Seven summit in Canada. Trump, who signed a joint G-7 statement calling for peace in the Middle East, reiterated warnings toward Iran, urging immediate evacuation of Tehran and criticizing its decision not to sign a nuclear deal.

Israeli Strategic Affairs Minister Ron Dermer signaled a continuation of military operations against Iran, referring specifically to missile and nuclear threats. “Whether Iran will decide to meet with the United States… that’s up to Iran to decide,” Dermer said during a Bloomberg interview.

Economic Worries: Retail Sales Drop

Adding to the pressure, the U.S. Commerce Department reported that retail sales in May dropped by 0.9% from the previous month worse than the 0.6% decline economists had forecast. The biggest weakness came from the auto sector, which had previously seen a spike in sales ahead of new tariffs.

Fed in Focus: Rate Decision and Economic Outlook

The Federal Reserve is widely expected to hold interest rates steady at 4.25% to 4.50% during its midweek meeting. Market participants await updated economic projections from central bank officials, which are expected to show higher inflation, low unemployment, and a slowdown in economic growth through the second half of 2025.

Investors are also watching Congress as it debates what President Trump has dubbed the "One Big Beautiful Bill." The Senate version includes significant revisions: a full phase-out of solar and wind tax credits by 2028, further cuts to Medicaid, and a lower cap on state and local tax (SALT) deductions.

In crypto news, JPMorgan Chase has filed a trademark application for “JPMD” with the U.S. Patent and Trademark Office. The application hints at potential plans for a JPMorgan-backed stablecoin, as it includes services such as trading, exchanging, and transferring digital assets.