The major averages sold off in the afternoon after being higher in the morning as tensions and further strikes against Iran caused some investors to take profits. The Dow Jones Industrial Average fell 299 points, or 0.7%. The S&P 500 shed 50 points or 0.84%, while the Nasdaq Composite fell 180 points or 0.9%.

President Donald Trump threatened Iran’s leader in a series of Truth Social posts Tuesday and demanded “UNCONDITIONAL SURRENDER!” Trump met with his national security team in the White House Situation Room Tuesday afternoon. Meanwhile, the Pentagon simultaneously moved assets to the Middle East to strengthen U.S. military’s defensive capabilities and expand Trump’s options.

The price of oil and energy stocks moved higher. Oil jumped 4% while the energy sector was up a percent. Defense stocks were higher as well reversing yesterday’s declines. Most other sectors were lower today.

A few tech stocks were higher like Jabil up 8% on earnings. The chip stocks were quiet today, but have performed well of late.

 Solar stocks took a hit. First Solar was down 18% after the Senate maintained the full removal of clean-energy tax credits in the budget bill, even as it extended the time frame for the phaseout beyond the House’s bill. Citigroup downgraded the sector with a sell rating on residential solar stocks.

Interest rates were lower following weak consumer data. The 10-year Treasury note was down 6 basis points to 4.38%. The 2-year Treasury was down 2 basis points to 3.94%.

In the commodity space, gold was modestly lower while bitcoin fell down 3%.

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