U.S. stocks fell at the end of trading today, Tuesday, as the Israeli-Iranian conflict continued for the fifth consecutive day, increasing investors' concerns, with the U.S. military moving fighter jets to the Middle East.
The S&P 500 index fell by 0.85 percent, closing at 5982 points, while the Nasdaq Composite lost 0.92 percent, closing at 19,521 points, and the Dow Jones Industrial Average declined by about 0.72 percent, reaching 42,209 points.
Reuters reported, citing three U.S. officials, that the U.S. military is deploying more fighter jets to the Middle East and expanding the deployment of other warplanes.
President Donald Trump called on Iran for 'unconditional surrender,' and the war began last Friday when Israel attacked Iranian nuclear facilities.
Terry Sandven, Chief Equity Strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota, said: 'We are in a period characterized by weak visibility, high uncertainty, and increasing concerns.'
Alongside the conflict in the Middle East, investors are closely monitoring any new information regarding Trump's tariffs, the tax cut bill, and U.S. interest rates.
The Federal Reserve is expected to announce its decision on monetary policy on Wednesday, although policymakers are expected to keep interest rates unchanged.
Earlier on Tuesday, data showed that U.S. retail sales fell more than expected in May, while factory production rose slightly last month.
Brian Jacobsen, Chief Economist at Annex Wealth Management, said, 'The data-dependent Federal Reserve will have to provide a lot of clarification on why it is not responding to the data.'