US Stocks Dip Amid Escalating Israel-Iran Conflict, Fed Rate Meeting

U.S. stock markets opened lower amid escalating conflict between Israel and Iran, which began with Israeli airstrikes on Iran's nuclear facilities, raising concerns over potential disruptions to Middle Eastern oil exports. Energy stocks, including Chevron and Exxon, rose as oil prices remained elevated due to the uncertainty. Investors are cautious ahead of the Federal Reserve's upcoming policy meeting, where rates are expected to remain unchanged, although markets are pricing in possible rate cuts by the end of 2025. Senate Republicans proposed changes to President Donald Trump's tax-cut bill, including a phase-out of solar and wind energy tax credits by 2028, which led to significant declines in solar stocks, while nuclear energy credits were extended to 2036, boosting nuclear sector shares. President Trump called for an immediate evacuation of Tehran, emphasizing that Iran should not possess nuclear weapons, further intensifying geopolitical tensions. Overall, the Middle East conflict and related political developments are weighing heavily on market sentiment and investor confidence.