Trump SLUMPS Retail Sales Due to War Rhetoric!

As President Trump calls for Iran’s “UNCONDITIONAL SURRENDER” and hints at targeted strikes, investors are fleeing stocks faster than a confused politician trying to find the exit at a press conference.

At a Glance

• U.S. stocks have plummeted as the Israel-Iran conflict escalates, with oil prices surging to three-year volatility highs.
• President Trump warned Iran’s “Supreme Leader” is an “easy target” and demanded an unconditional surrender on its nuclear program.
• U.S. retail sales dropped 0.9% in the latest report, nearly twice what economists expected, signaling a weakening consumer.
• The Fed is caught between persistent inflation, fueled by past spending, and a slowing economy, leaving it with no good options.
• The CBOE Volatility Index, Wall Street’s “fear gauge,” jumped over 4% as investors fled to the safety of U.S. Treasury bonds.

Markets Tank as Middle East Tensions Boil Over

Wall Street took a nosedive as investors ran for cover amid escalating tensions between Israel and Iran, with all major indices flashing red. The S&P 500, Dow Jones Industrial Average, and Nasdaq slumped while oil prices surged, creating the perfect storm for an already fragile economy. This is no surprise to anyone who has watched the consequences of projecting weakness on the world stage.

As Bloomberg reported, the CBOE Volatility Index—Wall Street’s “fear gauge”—jumped over 4%, reflecting the market’s growing anxiety that this conflict could spiral into something much larger.

President Trump Puts Iran On Notice

President Trump did not mince words when addressing the conflict, demanding Iran’s “UNCONDITIONAL SURRENDER” in a direct message that sent shockwaves through global markets. “We know exactly where the so-called ‘Supreme Leader’ is hiding,” Trump stated. “He is an easy target but is safe there – We are not going to take him out (kill!), at least not for now.”

This statement, detailed by Financial Juice, sent crude oil prices skyrocketing. Americans already struggling with inflation will likely see gas prices climb even higher, adding insult to injury for families barely keeping up.

Consumers Are Finally Throwing in the Towel

As if geopolitical tension wasn’t enough, new Commerce Department data revealed that U.S. retail sales plummeted 0.9%—far worse than the 0.6% economists predicted. As reported in the Press Democrat, Americans are cutting back on restaurants, auto purchases, and building materials.

“Today’s data suggests consumers are downshifting, but they haven’t yet slammed the brakes,” said economist Ellen Zentner. But when retail sales drop nearly twice as much as expected and homebuilder confidence hits its lowest level since 2022, that’s not “downshifting”—the check engine light is coming on.

The Fed’s No-Win Situation

The Federal Reserve is now stuck in an impossible position. This economic mess is the direct result of trillions in unnecessary government spending under past administrations, followed by wasteful “infrastructure” and “inflation reduction” bills that did precisely the opposite of what their Orwellian names suggested.

Markets hate uncertainty, and right now we have it in spades. “For now, markets will remain mostly on edge until they lower the temperature in the region,” said market strategist Kenny Polcari. Treasury yields dropped as investors fled to safety, while the U.S. dollar experienced its most significant climb in a month. As usual, Main Street feels the pain while Washington figures out how to spend more of your grandchildren’s money.