US Stocks Fall on Iran-Israel Conflict, Truce Hopes Fizzle

U.S. stock markets declined on June 17 amid escalating tensions between Israel and Iran, with the S&P 500, Nasdaq 100, and Dow futures all falling as hopes for a swift ceasefire faded. President Donald Trump downplayed prospects for a truce, leaving the G7 meeting early to convene the National Security Council and calling for a complete surrender by Iran, which further dampened investor sentiment. Retail sales data showed a larger-than-expected decline, signaling slowing consumer spending and raising concerns about economic momentum ahead of the Federal Reserve's upcoming policy decision. Industrial production also slipped, with ongoing trade policy uncertainty weighing on business investment and manufacturing growth remaining subdued. Rising geopolitical risks have pushed oil and natural gas prices higher, adding pressure to global equity markets, while the Cboe VIX index indicated increased market caution. Overall, markets are navigating a complex mix of geopolitical conflict, economic data, and monetary policy uncertainty.