The major indices on the New York Stock Exchange opened lower. The armed conflict between Israel and Iran, along with weaker-than-expected U.S. retail sales figures, are believed to have influenced this.
As of 9:31 a.m. local time on the 17th, the Dow Jones Industrial Average opened down 142.24 points (0.33%) at 42,372.85 on the New York Stock Exchange (NYSE). The Standard and Poor's (S&P) 500 index was down 23.50 points (0.39%) at 6,009.61, while the Nasdaq index moved down 77.97 points (0.40%) at 19,623.24.
The U.S. Department of Commerce reported that retail sales in May fell by 0.9% compared to the previous month, totaling $715.4 billion. This decline was more substantial than expected, falling short of the Dow Jones' forecast of a 0.6% decrease. Monthly retail sales figures are preliminary statistics primarily aggregating sales of goods, serving as an indicator for changes in U.S. consumption.
Concerns over a decline in consumer sentiment appear to have impacted the stock market. Chris Rupkey, chief economist at Forward Bonds, noted that "consumers are reducing expenditures and choosing to save amid uncertainty about the future economy," adding that this could be interpreted as a signal of economic slowdown.
The military skirmishes between Israel and Iran are also ongoing. U.S. President Donald Trump urged people in Tehran, the capital of Iran, where intensive Israeli airstrikes are continuing, to leave the area immediately the previous night. Trump was in Canada for the G7 (Group of Seven) summit but returned early without reaching trade agreements with some member countries due to the situation in the Middle East. Jim Reid, a strategist at Deutsche Bank, analyzed that "the market is in a state of confusion over whether Trump’s remarks and his early return signal new information."
On that day, all sectors were down except for energy, which rose by 1.3%. Healthcare fell by 0.8%, communication services by 0.6%, and consumer staples by 0.5%.
In terms of individual stocks, solar-related stocks are plummeting following news of the elimination of renewable energy tax credits. The U.S. Senate Finance Committee announced a revised version of President Trump’s massive tax cut and spending bill, stating that tax credits for renewable energy sources like solar and wind would be gradually eliminated by 2028. As a result, Enphase Energy's stock price fell by 22%, and Sunrun dropped by 39%, with selling pressure concentrated on related stocks.
On the other hand, shares of Verb Therapeutics are soaring 74% following news that Eli Lilly agreed to acquire the company at $10.50 per share. The acquisition price represents about a 67.5% premium over the previous day's closing price. The total transaction amount is expected to reach up to $1.3 billion.
The homebuilder Lennar is seeing its stock rise by 2% following the announcement of quarterly results that exceeded market expectations.
European stock markets are also falling sharply. The Euro Stoxx 50 index is down 0.85%. Germany's DAX index fell by 0.78%, the UK's FTSE index by 0.46%, and France's CAC 40 index by 0.72%.
As of 9:43 a.m. local time, the price of West Texas Intermediate (WTI) crude oil for July delivery is up 1.41% to $72.78 per barrel. The price of Brent crude for August delivery, a global benchmark, has risen by 1.67% to $74.45 per barrel.