04:58 PM EDT, 06/17/2025 (MT Newswires) -- US equities fell on Tuesday, while oil prices advanced as tensions remained high between Israel and Iran.

The Nasdaq Composite ended down 0.9% at 19,521.1, while the S&P 500 fell 0.8% to 5,982.7. The Dow Jones Industrial Average lost 0.7% to 42,215.8. Barring energy, all sectors were in the red, led by health care.

Israel and Iran traded strikes for a fifth day. Israel launched airstrikes across Iran late last week, targeting its military infrastructure and nuclear facilities, with Tehran firing missiles at Tel Aviv in response.

US President Donald Trump on Tuesday demanded "unconditional surrender" by Iran, stressing that the Middle Eastern country should have signed a deal with Washington.

In a prior social media post, Trump called for the evacuation of Tehran.

West Texas Intermediate crude oil was up 4% at $74.67 a barrel in Tuesday late-afternoon trade.

"The market remains on edge with the biggest fear a potential blockage of the Strait of Hormuz, which would lead prices to soar further," ING said in a note, referring to the strait through which almost a third of global seaborne oil trade passes.

The International Energy Agency reduced its projections for global oil demand growth for 2025 and 2026. "While the market looks comfortably supplied now, the recent events sharply highlight the significant geopolitical risks to oil supply security," the agency said.

On Monday, the Organization of the Petroleum Exporting Countries trimmed its global oil demand projections for this year.

US Treasury yields were lower, with the 10-year rate falling 6.4 basis points to 4.39% and the two-year rate dropping 2.7 basis points to 3.96%.

In economic news, US retail sales fell more than market expectations in May amid declines in purchases of motor vehicles and building materials, government data showed.

"A flurry of activity in anticipation of tariffs boosted consumer spending earlier this year, but that momentum is now looking to have run its course, with retail sales declining in both April and May," TD Economics said.

US homebuilder confidence in June reached its lowest level since December 2022 amid affordability headwinds and macro uncertainty, according to data released by the National Association of Home Builders and Wells Fargo.

"Given current market conditions, NAHB is forecasting a decline in single-family starts for 2025," Chief Economist Robert Dietz said.

The Federal Reserve's two-day monetary policy meeting kicked off, with markets widely expecting the Federal Open Market Committee to again hold interest rates steady Wednesday. The committee is also scheduled to release its latest Summary of Economic Projections Wednesday.

"The FOMC will likely be more dovish than the market expects and stick to its forecast of two rate cuts this year," Nomura said in a Tuesday note.

US Industrial production unexpectedly fell last month as utilities' output declined, data from the Fed showed Tuesday.

New risks to industrial output have emerged, Oxford Economics said in remarks emailed to MT Newswires, pointing to higher oil prices and a tax proposal that could deter foreign direct investment.

"Nevertheless, industrial activity is poised for a rebound in 2026 thanks to increased defense spending, tax incentives for certain business investment, and further interest-rate relief from the Federal Reserve," Oxford Lead US Economist Bernard Yaros said.

In company news, Jabil ( JBL ) raised its full-year outlook as the manufacturing solutions provider reported better-than-expected fiscal third-quarter results and announced a $500 million investment plan to expand its footprint in the US. The company's shares jumped 8.9%, the top gainer on the S&P 500.

Enphase Energy ( ENPH ) shares sank 24%, the worst performer on the S&P 500, after a US Senate committee proposed phasing out renewable energy credits and KeyBanc downgraded the stock. First Solar ( FSLR ) followed Enphase on the S&P 500, down 18%.

Gold fell 0.4% at $3,402.2 per troy ounce, while silver rose 2% to $37.17 per ounce.