U.S. stocks finished with losses on Tuesday as the Israel-Iran conflict raged on for a fifth day and kept investor anxiety high, with the U.S. military moving fighter jets to the Middle East.

Market Snapshot

The Dow Jones Industrial Average fell 299.29 points, or 0.7%, to 42,215.80, the S&P 500 lost 50.39 points, or 0.84%, to 5,982.72 and the Nasdaq Composite lost 180.12 points, or 0.91%, to 19,521.09.

Market Movers

Sunrun sank 40%, Enphase Energy fell 24%, and First Solar declined 18% as Senate Republicans detailed changes to Trump's tax-and-spending bill that would phase out solar, wind, and energy tax credits by 2028.

Verve Therapeutics rose 82% to $11.38 after Eli Lilly agreed to acquire the gene editing start-up for up to $1.3 billion. As part of the agreement, Lilly will pay $10.50 a share for Verve, or about $1 billion upfront, with another $300 million contingent on Verve achieving certain clinical milestones. Lilly shares declined 2%.

Advanced Micro Devices rose 0.6%. The chip maker ended Monday's session up 8.8% at $126.39, the stock's largest daily percentage gain since April 9, when it rose nearly 24%, according to Dow Jones Market Data. Analysts have been bullish on the company's new artificial-intelligence chips, the Instinct MI350 series, which were designed to compete with market leader Nvidia.

Nvidia, meanwhile, was down 0.4% to $144.12. Analysts at Barclays raised their price target on the stock to $200 from $170 and maintained their Overweight recommendation.

Palantir Technologies was down 2.3% after the artificial intelligence data-analytics company closed Monday at a record high of $141.41, gaining 2.9% in the session. While the stock has rallied 81% this year and 430% over the past 12 months, analysts have repeatedly expressed concern over its lofty valuation.

Shares of Tesla fell 3.9%. The electric-vehicle company's robotaxi launch is tentatively scheduled for June 22, according to CEO Elon Musk, and analysts have been split on how the taxis -- and the stock -- will perform. CFRA analyst Garrett Nelson recently wrote the launch should be "largely anticlimactic and lacking the fanfare of last October's Robotaxi Day," while Piper Sandler analyst Alexander Potter said he expects the stock to "sustain upward momentum in the coming weeks as more information is disclosed."

T-Mobile US declined 4.1%. A report from Bloomberg said SoftBank has trimmed its stake in the wireless network operator to help pay for its AI plans. The Japanese tech conglomerate raised about $4.8 billion from an overnight unregistered block sale of T-Mobile stock, dumping 21.5 million shares for $224 each, according to a report that cited the deal terms.

Lennar declined 4.5% as the home builder reported fiscal second-quarter earnings of $1.90 a share, excluding mark-to-market technology investment losses, on $8.4 billion in revenue. Analysts had expected earnings of $1.94 a share on revenue of about $8.2 billion. Lennar's average sales price of homes delivered fell 9% to $389,000 in the quarter.

Jabil rose 8.9% after the supplier of electronic parts beat quarterly earnings expectations, raised its fiscal-year forecast, and announced a new series of U.S. manufacturing investments.

JetBlue Airways tumbled 7.9%. The low-cost carrier told staff it will further cut costs and flights amid weaker travel demand, according to a report from CNBC.

Market News

Senate Passes Stablecoin Bill in Win for Crypto, Trump

The US Senate passed stablecoin legislation setting up regulatory rules for cryptocurrencies pegged to the dollar, in a landmark win for the ascendant crypto industry and President Donald Trump.

The 68-30 vote on Tuesday evening marked a rare moment of bipartisanship in the deeply divided Senate, despite Republicans blocking Democratic efforts to bar Trump from profiting from his many crypto ventures while in office.

Trump Tax Bill to Boost Biden's Chip Tax Credit to 30%

The Senate’s draft tax bill calls for increasing an investment credit for semiconductor manufacturers, a potential boon for chipmakers that the Trump administration is urging to increase the size of their US projects.

The measure would increase the tax credit to 30% of investments in plants, up from 25%, giving chipmakers further incentive to break ground on new facilities before an existing 2026 deadline. Companies that start projects by the end of next year can continue to claim credits for continuous construction after that date — a policy that’s designed to get sites up and running while recognizing that chip factories take years to build.