US stock markets edged lower on Tuesday as signs of weaker consumer spending and escalating geopolitical tensions weighed on investor sentiment.The S&P 500 slipped 0.2%, the Dow Jones Industrial Average dipped 42 points (0.1%), and the Nasdaq composite fell 0.2% as of 12:32 p.m. Eastern time.Fresh data showed a decline in US retail sales in May, raising concerns about the resilience of household spending — a key engine of the world’s largest economy. Analysts attributed part of the slowdown to consumers front-loading purchases in April ahead of impending tariffs on automobiles.“Today’s data suggests consumers are downshifting, but they haven’t yet slammed the brakes,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, as quoted AP.Adding to the unease, President Donald Trump left the G7 summit early and urged immediate evacuation of Tehran, just hours after calling a nuclear deal with Iran “achievable.” The shift in tone added to market anxiety over the Israel-Iran conflict, which threatens to disrupt global oil supplies through the Strait of Hormuz.In response, oil prices surged. Benchmark US crude rose 2.7% to $73.71, while Brent crude gained 2.8% to $75.25 per barrel, extending Friday’s 7% rally before easing slightly on Monday.Despite usually benefiting from high oil prices, solar stocks tumbled on fears that US Congress may roll back clean energy tax credits. Enphase Energy plunged 24.4% and First Solar fell 18%.On the upside, Jabil jumped 11.6% after posting better-than-expected earnings, with CEO Mike Dastoor citing strong AI-related demand.Verve Therapeutics soared 79% after Eli Lilly announced it would acquire the genetic medicine firm in a deal worth up to $1.3 billion, including milestone payments. Shares of Lilly dipped 1.3%.Meanwhile, the Federal Reserve began its two-day policy meeting with markets widely expecting rates to remain unchanged. The Fed has held off on further cuts after easing once late last year, as it monitors the impact of Trump’s tariffs and watches inflation trends.While inflation has remained near the Fed’s 2% target, the central bank’s updated economic and interest rate projections — due Wednesday — are expected to provide clearer cues for the second half of the year.Bond yields fell slightly after the retail report. The 10-year Treasury yield eased to 4.41% (from 4.46% Monday), while the 2-year yield — more sensitive to Fed expectations — slipped to 3.95% from 3.97%.Globally, European stock indexes fell, while Asia saw mixed trade. Tokyo’s Nikkei 225 gained 0.6% after the Bank of Japan held its key interest rate steady, continuing its gradual tightening cycle.
