It’s a tense week for the markets, and investors are watching with bated breath.
Wall Street’s major indexes slipped Tuesday morning as the Israel-Iran conflict intensified, creating fresh anxiety ahead of the U.S. Federal Reserve’s interest rate decision.
On Tuesday, June 17, 2025, Dow Jones was down 0.26%, S&P 500 slipped 0.36%, and Nasdaq fell 0.45%.
Investors are digesting a volatile mix of geopolitics, energy price spikes, weak retail data, and looming Fed uncertainty.
Markets are reacting cautiously as Israel’s strikes on Iranian nuclear sites stretch into a fifth day, triggering fears of disruptions in global oil supply.
While there’s no panic selling (yet), strategists say the risks are rising.
“The market is paying attention… but right now there’s no panic,” said Larry Tentarelli of Blue Chip Daily Trend Report.
The winners of the moment are energy stocks. Chevron gained 1.8%, Exxon Mobil rose 1.7%, and the S&P 500 Energy Index was up 1.6%.
What About the Fed?
The conflict is brewing just before the Federal Reserve’s rate announcement on Wednesday. While the Fed is widely expected to hold interest rates steady, traders are already betting on cuts later in the year.
According to the CME FedWatch Tool, Markets are pricing in 46 basis points of rate cuts by year-end, and there’s a 57% chance of a 25-bps rate cut in September 2025.
Meanwhile, U.S. Treasury yields slipped slightly as investors moved into safer assets. The benchmark 10-year yield fell 2 bps to 4.43%.
In a Sharp Reversal for Clean Energy
Solar stocks were hammered after the U.S. Senate proposed phasing out solar and wind tax credits by 2028, part of a revision to former President Trump’s tax cut bill.
The fallout was brutal; Sunrun crashed 39.4%, Enphase Energy fell 23.3%, and Invesco Solar ETF (TAN) lost 8.8%.
On the flip side, nuclear energy stocks rallied, thanks to extended credits through 2036. Oklo rose 3.3% and Nano Nuclear Energy gained 4.3%.
With rising Middle East tensions, a Fed decision incoming, and major shifts in energy policy, it’s no surprise that stocks are stalling.
If you’re investing this week, stay alert and buckle up; there’s turbulence ahead.
