US stocks edged lower in early trade Tuesday as investors reacted to weaker-than-expected retail spending data and fresh geopolitical concerns stemming from intensifying conflict in the Middle East.The S&P 500 dropped 0.3%, the Dow Jones Industrial Average fell 163 points or 0.4%, and the Nasdaq Composite declined 0.3%. Treasury yields also slipped as bond traders digested data showing that US shoppers pulled back on spending last month, missing both month-on-month and analyst expectations, AP reported.Market sentiment remained cautious after solar stocks dipped on concerns that tax credits for renewable energy may be rolled back in Congress.US industrial production unexpectedly fell 0.2% in May, according to the Federal Reserve, as a drop in utilities output offset slight gains in manufacturing and mining, both of which rose 0.1%. This marks the second decline in three months, defying expectations of a 0.1% increase.The losses followed a strong session on Monday, when the S&P 500 recovered 0.9% from Friday’s losses, the Dow added 0.8%, and the Nasdaq gained 1.5%. U.S. Steel rose 5.1% after President Trump signed an executive order enabling a new investment from Japan’s Nippon Steel, giving him unique influence over its operations.Markets across Asia and Europe fell sharply after Israel issued an evacuation warning to 330,000 residents in Tehran — raising fears of a broader conflict that could disrupt global oil flows.Germany’s DAX was down 1.3%, France’s CAC 40 fell 0.9%, and the UK’s FTSE 100 dipped 0.5%. In Asia, Hong Kong’s Hang Seng shed 0.3%, while Shanghai and Bangkok were flat. Japan’s Nikkei 225 rose 0.6% after the Bank of Japan left interest rates unchanged at 0.5%, citing moderate growth and weak consumer sentiment.Oil prices climbed over $1 per barrel. Brent crude rose $1.13 to $74.34, and WTI crude gained $1.05 to $72.82. This followed last week’s 7% spike after Israel struck Iranian military targets.Gold prices declined $18.40 to $3,398.70/oz after recent safe-haven inflows. The US dollar strengthened slightly to 144.80 yen, while the euro eased to $1.1557.Looking ahead, investors await Wednesday’s US Federal Reserve decision. While the Fed is widely expected to hold rates steady, markets are watching for updates on economic and rate projections — especially in light of ongoing tariffs and subdued inflation near the Fed’s 2% target.