Global Tensions & Market Reactions: An Update on the U.S. Stock Indexes

U.S. stock index futures took a downturn on Tuesday as the prolonged Israel-Iran conflict weighed on global investor sentiment ahead of the Federal Reserve's monetary policy meeting. The ongoing airstrikes, resulting from Israel's assault on Iran's nuclear sites, have heightened oil export concerns, elevating U.S. energy stocks.

With the Fed's decision imminent, the market anticipates no change in interest rates, although there's speculation about future cuts. Analysts are also grappling with the Senate's tax proposal changes that impact solar incentives while extending nuclear credits, affecting related stocks.

Key economic data and corporate maneuvers are influencing further market movements, including Eli Lilly's acquisition deal and SoftBank's significant sale of T-Mobile shares. Investors are retreating to safer assets amidst the geopolitical instability, evident in the decline of U.S. treasury yields.

(With inputs from agencies.)