US markets ended lower on Tuesday, hit by an unexpected decline in US retail sales and a further rise in oil prices amid an escalation in the conflict between Israel and Iran.
The S&P 500 index lost 0,8% during the session, while the Dow Jones fell 0,6% (-267 points) and the Nasdaq, which is more sensitive to technology stocks, lost 0,9%.
Bond yields also fell, with the 10-year Treasury yield falling to 4,39% from 4,46% on Monday. The two-year yield edged down to 3,94%.
According to the latest data, retail sales fell in May, while analysts had expected an increase. This decline, linked in part to a return to normal after a surge in car purchases in April (consumers having anticipated new customs duties imposed by Donald Trump), fuels fears of a slowdown in consumption, the pillar of American growth.
"Consumers are slowing down, but not yet hitting the brakes," said Ellen Zentner, chief economist at Morgan Stanley Wealth Management.
The barrel is rising again
Oil prices resumed their rise, with US WTI crude rising 3,5% to $74,29 and Brent rising 3,6% to $75,85. This rise follows the intensification of regional tensions after Donald Trump prematurely left the G7 summit to manage the crisis and urged Tehran residents to flee the capital.
Iran, a major oil producer, controls the Strait of Hormuz, a strategic transit point for about 20% of the world's oil. Any disruption there could affect global supply and drive up energy prices.
Solar stocks fall, Jabil and Verve Therapeutics soar
Paradoxically, renewable energy stocks plummeted as investors feared a withdrawal of tax incentives by the US Congress. Enphase Energy plunged 23,2%, and First Solar 18,3%.
Conversely, Jabil jumped 10,2% after better-than-expected results, driven by strong demand for artificial intelligence. Verve Therapeutics soared 78,9% after the announcement of its acquisition by Eli Lilly for $1 billion, or up to $1,3 billion under conditions. Eli Lilly fell slightly (-1,7%).
The Fed in the crosshairs
The Federal Reserve has begun its two-day interest rate meeting. The market is not expecting any change in monetary policy, but will be scrutinizing the central bank's new economic projections on Wednesday. Investors are wondering about the potential impact of new tariffs and geopolitical tensions on growth and inflation.
Elsewhere in the world
European stock markets ended lower. In Asia, Tokyo gained 0,6% after the Bank of Japan kept its rates unchanged, while continuing its strategy of gradually phasing out ultra-accommodative measures.
