NEW YORK, June 17 (Reuters) - U.S. stocks were lower on Tuesday, with indexes adding to losses in afternoon trading as the Israel-Iran conflict raged on for a fifth day, with the U.S. military moving fighter jets to the Middle East.
Reuters reported, citing three U.S. officials, that the U.S. military is deploying more fighter aircraft to the Middle East and extending the deployment of other warplanes.
President Donald Trump said that U.S. patience was wearing thin but it had no immediate intention to "take out" Iran's leader.
In addition, Iran's semi-official Mehr news agency said Iran's senior army commander called on Israelis to evacuate Haifa and Tel Aviv immediately.
The war began on Friday when Israel attacked Iran's nuclear facilities.
"We're in a period where visibility is not great, uncertainty is high, and the wall of worry is under construction," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota.
Besides the Middle East conflict, investors are closely watching for any new information on Trump's tariffs, his tax-cut bill and on U.S. interest rates.
The Federal Reserve is expected to announce a monetary policy decision on Wednesday, although policymakers are expected to leave rates unchanged.
All of the major S&P 500 sectors were lower except for energy (.SPNY), which was up 1.7%, while shares of Exxon Mobil (XOM.N), were up 2%. Investors have worried that the conflict could create bottlenecks for oil exports from the oil-rich Middle East.
The Dow Jones Industrial Average (.DJI), fell 323.28 points, or 0.76%, to 42,191.81, the S&P 500 (.SPX), lost 51.45 points, or 0.85%, to 5,981.53 and the Nasdaq Composite (.IXIC), lost 189.33 points, or 0.96%, to 19,511.89.
Among declining stocks, solar stocks fell after U.S. Senate Republicans late on Monday unveiled proposed changes to Trump's tax-cut bill, including a phase-out of solar, wind and energy tax credits by 2028.
Shares of Enphase Energy (ENPH.O), dropped 23.2% and Sunrun (RUN.O), fell 39.4%.
Eli Lilly (LLY.N), eased 1.6% after it agreed to acquire Verve Therapeutics (VERV.O), for up to $1.3 billion. Shares of Verve surged 79%.
Earlier Tuesday, data showed U.S. retail sales dropped more than expected in May, while factory production barely rose last month.
Declining issues outnumbered advancers by a 2.04-to-1 ratio on the NYSE. There were 76 new highs and 65 new lows on the NYSE.
On the Nasdaq, 1,369 stocks rose and 3,013 fell as declining issues outnumbered advancers by a 2.2-to-1 ratio.
Additional Reporting by Kanchana Chakravarty and Sukriti Gupta in Bengaluru; Editing by Maju Samuel
