U.S. stock index futures dropped on Tuesday as conflict in the Middle East entered its fifth day, dampening global investor confidence ahead of the Federal Reserve's upcoming policy meeting.

Market Snapshot

At 7:50 a.m. ET, Dow E-minis were down 212 points, or 0.49%, S&P 500 E-minis were down 30.25 points, or 0.50%. Nasdaq 100 E-minis were down 121 points, or 0.55%.

Pre-Market Movers

Regencell Bioscience - Regencell Bioscience shares jumped another 30% in premarket trading. The biotech stock focused on herbal medicine has surged by more than 46,000% so far this year and yet, the company itself has made zero revenue — much less turned a profit.

Verve Therapeutics - Eli Lilly will acquire gene-editing startup Verve Therapeutics for up to $1.3 billion, the companies said on Tuesday, sending Verve's shares up 75% in premarket trading.

Solar Stocks - U.S. solar stocks sank in premarket trading on Tuesday after a Senate panel proposed a full phase-out of solar and wind energy tax credits by 2028, as part of changes suggested to President Donald Trump's sweeping tax-cut and spending bill. Sunrun fell 36%, SolarEdge fell 30%, Enphase Energy fell 21%, and First Solar fell 18%.

Oil Stocks - Oil stocks jumped again in premarket trading as oil prices rose on Tuesday on rising disruptions from the Iran-Israel conflict, although major oil and gas infrastructure and flows have so far been spared from any substantial impact. Robin Energy rose 21%; US Energy and Houston American rose 9%; TMD Energy rose 6%; Indonesia Energy rose 5%; TotalEnergies rose 2%; Shell, BP, ConocoPhillips, Exxon Mobil, Halliburton, Occidental, and Chevron rose 1%.

AMD - AMD was up 0.6% in premarket trading. 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.

SRM Entertainment - SRM Entertainment shares pulled back 5% in premarket trading on Tuesday after soaring 533.8% on Monday. Justin Sun’s digital asset platform Tron is preparing to go public in the United States through a reverse merger with SRM Entertainment, according to the Financial Times.

Redwire - Aerospace and defense technology company Redwire tumbled 14.4% in premarket trading after the company announced it has commenced an underwritten registered public offering of $200 million of its common stock.

T-Mobile - T-Mobile shares dropped 4.6% in premarket trading. Japan's SoftBank raised $4.8 billion from a sale of 21.5 million T-Mobile shares at $224 each, according to a term sheet reviewed by Reuters.

MakeMyTrip - MakeMyTrip is seeking to raise more than $2 billion in concurrent sales of shares and convertible bonds, as the US-listed Indian travel firm aims to buy back a stake held by Trip.com. MakeMyTrip shares sank 8.9% in premarket trading.

Lennar - Lennar stock gained 2.7% in premarket trading on Tuesday after-hours trading after the homebuilder turned in mixed fiscal Q2 results, with earnings missing consensus and revenue topping the average analyst estimate. The outlook for Q3 was also uneven.

Market News

Trump Leaves G-7 Summit Early as Israel-Iran Tension Spikes

US President Donald Trump’s hasty exit from the Group of Seven conference in Canada deepened questions about his promise to bring peace to an increasingly violent world and added fresh evidence of his skepticism toward the institutions that have long underpinned US diplomacy.

The president said he was departing the meeting of some of the world’s most powerful leaders in the Canadian Rockies because of the unfolding tensions in the Middle East, where Israel is bombarding Iran’s nuclear and military sites. That fanned speculation the US may be preparing to join Israel in its attacks.

In past crises, the Group of Seven was the very forum where US presidents corralled support for a coordinated response. That was the case when Russia invaded Ukraine and the G-7 was the venue through which allies organized support for Kyiv.

Trump Says Pharma Tariffs Coming Very Soon

US president Donald Trump said pharmaceutical tariffs are coming 'very soon'. 

Speaking to reporters on Air Force One on the way back from attending a meeting of G7 leaders, Trump said also said pharmaceutical tariffs were coming very soon.

"We're going to be doing pharmaceuticals very soon. That's going to bring all the companies back into America," he said. "It's going to bring most of them back into, at least partially back in."

EU Refused Meeting With China on Lack of Trade Progress, FT Says

The European Union is refusing to hold an economic meeting with China due to a lack of progress on trade disputes, the Financial Times reports, underscoring tensions between the two sides even as Beijing tries to warm ties.

European officials decided to spurn the flagship EU-China High-Level Economic and Trade Dialogue, the FT reported citing four people familiar with the matter. The economic meeting would lay the groundwork for a leaders’ summit set for July 24-25 in China, the newspaper reported.

One of the people told the FT that Beijing wants to have the dialogue but the EU is seeing no progress in talks.

US and UK Announce a Trade Deal, but Steel Imports Unresolved

U.S. President Donald Trump signed an agreement on Monday formally lowering some tariffs on imports from Britain as the countries continue working toward a formal trade deal.

The deal, announced by Trump and British Prime Minister Keir Starmer on the sidelines of the G7 Summit in Canada, reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the U.K. aerospace sector, but the issue of steel and aluminum remains unresolved.

Other critical industries, such as pharmaceuticals, were not mentioned.