17.06.202520:02:20UTC+00US Stocks Drop as Trump Ramps Up Iran Rhetoric

On Tuesday, U.S. stocks declined as investors focused on the intensifying tensions in the Middle East, specifically the ongoing conflict between Israel and Iran, now in its fifth day. The S&P 500 fell by 0.8%, the Dow Jones Industrial Average decreased by 299 points, and the Nasdaq Composite declined by 0.9%. These movements were driven by growing concerns that the United States might become more directly involved in the Israel-Iran standoff. President Trump heightened his confrontational language, calling for Iran's "unconditional surrender" and hinting at potential military action against Supreme Leader Khamenei through a series of posts on Truth Social.

Additionally, economic data added to investor concerns, as U.S. retail sales dropped by 0.9% in May, highlighting a slowing consumer sector and suggesting that tariffs could be increasingly impacting the economy.

In corporate developments, JetBlue Airways saw its shares fall by 7.9% after its CEO predicted that weak travel demand would likely prevent the company from achieving break-even margins this year. Shares of other major airlines, including United, Delta, and American Airlines, also saw declines of 6.2%, 4.3%, and 3.1%, respectively. In contrast, energy companies ExxonMobil and Chevron experienced gains, rising by 1.3% and 3.2%, respectively, as oil prices surged by 4%.