The S&P 500 index experienced a decline of 0.8% on Tuesday as investors grappled with disappointing U.S. retail sales alongside rising tensions between the U.S. and Iran. The day ended with the Dow Jones Industrial Average falling 335 points while the Nasdaq Composite dropped 0.9%.

Retail Sales Report Triggers Concerns

Retail sales declined by 0.9% in May, exceeding economists’ expectations of a 0.7% decline. This illustrates a drop in consumer spending, particularly in the automotive sector, raising alarms about dwindling demand as the Federal Reserve begins its awaited policy meeting.

Geopolitical Tensions Heighten Market Uncertainty

Reports indicate that President Trump is considering military options against Iran, which has escalated market fears. The effects of these geopolitical developments leave investors on edge.

Fed Meeting Implications

As inflation data cools down alongside weak retail sales reports, all eyes are on Fed Chairman Jerome Powell for insights regarding future rate adjustments.

Technology and Consumer Stocks Dominate Decline

Notably, technology and consumer discretionary stocks led the market declines, highlighting their sensitivity to consumer spending and risk perceptions.

Conclusion:
The market’s reaction underscored the delicate balance between economic data and geopolitical risks.