Key takeout
- The S&P 500 dipped by 0.8% on Tuesday, June 17, 2025, amid rising worries over heightened tensions in the Middle East as President Trump took a more aggressive stance toward Iran.
- Shares of solar and renewable energy companies fell as Senate budget discussions indicated a phase-out of clean energy tax credits.
- Jabil’s stock surged after circuit board manufacturers exceeded quarterly earnings expectations, reflecting strong demand driven by AI.
The major U.S. stock indexes have seen declines as President Donald Trump intensified his rhetoric against Iran, reigniting fears about potential conflicts in the Middle East and the chance that the U.S. could become more involved.
The S&P 500 dropped by 0.8% on Tuesday, with the Dow Jones Industrial Average closing down 0.7%, and the tech-heavy Nasdaq seeing a 0.9% decline.
Stocks in renewable energy, previously boosted by Senate budget proposals, took a hit as the plans included eliminating clean energy tax credits. The draft Senate bill suggests phasing out solar and wind tax incentives by 2028 but extends incentives for hydro, nuclear, and geothermal energy until 2036. Enphase Energy’s shares fell dramatically, losing 24%, while First Laker saw an 8.1% decrease, a company that generates much of its revenue from wind and solar.
Airline stocks faced a rough patch after JetBlue’s CEO announced that airlines would cut unprofitable routes due to decreased travel demand. JetBlue’s shares fell 7.9%, with competitors United Airlines and Delta Air Lines experiencing drops of 6.2% and 4.3%, respectively, compounded by rising oil prices impacting the sector.
T-Mobile US shares slid by 4.1% after news emerged that Japanese firm SoftBank sold a significant portion of its stake in the telecommunications company. Reports indicated that SoftBank unloaded 21.5 million shares at a price below Monday’s closing value, potentially raising $4.8 billion for investments in artificial intelligence.
In contrast, Jabil’s stock jumped 8.9%, reaching record levels after reporting strong performance, spurred by robust demand for intelligent infrastructure related to AI, despite challenges in the electric vehicle and 5G markets.
Crude oil futures rose as fears of escalating violence in the Middle East resurface, positively impacting stocks in the oil and gas sectors. Valero Energy, the largest independent oil refinery globally, saw its shares increase by 2.9%.
Crowdstrike Holdings added 2.6% following Amazon Web Services’ introduction of a new incident response offering. The company’s AI-driven Falcon cybersecurity platform enhances how Amazon’s cloud services address incidents quickly.
