S&P 500 Slips on Weak Retail Sales and Escalating Israel‑Iran Tensions

The S&P 500 fell 0.8% on Tuesday as investors grappled with softer U.S. retail sales and the prospect of U.S. involvement in the Israel‑Iran conflict. At the close (4:00 p.m. ET), the Dow Jones Industrial Average dropped 335 points (−0.8%), the S&P 500 fell 0.8%, and the Nasdaq Composite declined 0.9%.

Retail Sales Miss Adds to Recession Fears

May retail sales plunged 0.9%, outpacing economists' 0.7% expected decline and signaling waning consumer demand—particularly in auto purchases as the rush to beat potential tariff‑driven price hikes faded. This deterioration came just as the Federal Reserve began its two‑day policy meeting, where rates are widely expected to remain unchanged.

Track all upcoming U.S. economic data releases—including this week's May retail sales and FOMC rate decision—in the Economic Calendar API.

Geopolitical Risk: Trump Mulls Strikes on Iran

Reports from the Wall Street Journal indicate President Trump is weighing options—including direct strikes against Iran—after recent Situation Room briefings. In a social‑media statement, Trump demanded Iran's “unconditional surrender” and claimed U.S. “complete and total control over the skies” in response to ongoing missile exchanges.

Although the U.S. hasn't formally entered the conflict, heavy weapon transfers to Israel and Trump's rhetoric have intensified market jitters. The G7's earlier call for de‑escalation did little to assuage concerns that the conflict could broaden.

Fed Meeting in Focus

With cooling inflation data—and now weak retail sales—traders are closely watching Fed Chair Jerome Powell's remarks for clues on future rate paths. Any shift in tone toward further easing or tighter language on inflation risks could swing markets sharply.

Market Movers and Sector Impact

Technology and consumer‑discretionary stocks led declines, reflecting sensitivity to both consumer spending trends and risk sentiment. For a real‑time snapshot of today's volume leaders and most active names, consult the Market - Most Active API.

Bottom Line:
Tuesday's session underscored the fragile balance between economic data and geopolitical shocks. By tracking the Economic Calendar for U.S. data releases and monitoring active stock flows, investors can better navigate potential volatility ahead of the Fed's policy decision and any further escalation in the Middle East.