(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

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Futures down: Dow 0.48%, S&P 500 0.45%, Nasdaq 0.5%

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Solar stocks down as Senate proposes to phase out tax

credits

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Eli Lilly ( LLY ) to acquire Verve Therapeutics ( VERV ) for up to $1.3 bln

(Updates before markets open)

By Kanchana Chakravarty and Sukriti Gupta

June 17 (Reuters) -

Wall Street's main indexes were on track for a lower open on

Tuesday as the Israel-Iran conflict entered its fifth day,

denting global investor confidence ahead of the Federal

Reserve's upcoming monetary policy decision.

Iran and Israel's air war, which began on Friday when Israel

attacked Iran's nuclear facilities, has raised concerns that the

conflict could create bottlenecks for oil exports from the

oil-rich Middle East.

"(Wall Street believes) that the situation is going to

be contained. The market is definitely paying attention to it,

but right now there's no panic in the market over it," said

Larry Tentarelli, chief technical strategist at Blue Chip Daily

Trend Report.

U.S. energy stocks rose in premarket trading as oil prices

remained elevated on the uncertainty. Chevron ( CVX ) and Exxon

edged up 0.7% each, while Occidental Petroleum ( OXY )

advanced 0.8%, and Devon Energy ( DVN ) gained 1.2%.

The surge in oil prices comes ahead of the Fed's monetary

policy decision on Wednesday, when policymakers are widely

expected to keep interest rates unchanged.

Money market moves show traders are pricing in about 48

basis points of rate cuts by the end of 2025, with a 59% chance

of a 25-bps rate cut in September, according to CME Group's

FedWatch tool.

At 8:49 a.m. ET, Dow E-minis were down 204 points,

or 0.48%, S&P 500 E-minis were down 27.25 points, or

0.45%, and Nasdaq 100 E-minis were down 108.25 points,

or 0.5%.

Data on Tuesday showed

U.S. retail sales dropped

more than expected in May. Retail sales fell 0.9% last

month, while economists polled by Reuters had forecast a 0.7%

decline.

U.S. Senate Republicans late on Monday unveiled proposed

changes to President Donald Trump's sweeping tax-cut bill that

had cleared the House of Representatives in May.

Solar stocks dipped after the Senate's changes to Trump's

tax-cut bill revealed a phase-out of solar, wind and energy tax

credits by 2028.

Shares of Enphase Energy ( ENPH ), which makes solar

inverters, dropped 21%. Solar panel sellers Sunrun ( RUN ) fell

36% and SolarEdge Technologies ( SEDG ) dropped 31.3%. First

Solar ( FSLR ) lost nearly 17.6%.

Shares of nuclear power companies rose after the Senate

extended credits for nuclear energy to 2036. Oklo ( OKLO ) was

up 5.2% and Nano Nuclear Energy ( NNE ) rose 4.3%.

As investors flock to traditional safe-haven assets amid

heightened geopolitical uncertainty, a rise in U.S. Treasuries

pushed yields lower across the curve. Yields on the benchmark

10-year fell about 5 basis points to 4.40%.

Among other movers, Eli Lilly ( LLY ) edged down 0.4% after

it agreed to acquire Verve Therapeutics ( VERV ) for up to $1.3

billion. Shares of Verve surged over 75%.

T-Mobile fell 4.3% after Japan's SoftBank

raised $4.8 billion from a sale of 21.5 million of the wireless

carrier's shares at $224 each, according to a term sheet

reviewed by Reuters.