Stocks rose and oil prices retreated on Monday as investors shrugged off the continuation of hostilities between Israel and Iran over the weekend.

NEW YORK (AP) — U.S. stocks are nudging lower on Tuesday, and oil prices are rising again. It’s a modest return to form for financial markets after worries had seemed to calm on Wall Street Monday.

Investor attention is also fixed on the Federal Reserve, which begins its two-day policy meeting Tuesday. The outcome is expected on June 18 Experts predict that this could mark the fourth consecutive meeting where the Fed keeps interest rates unchanged.

The International Energy Agency tweaked its global oil demand forecast, now expecting demand to rise by 720,000 barrels a day this year versus 740,000 barrels previously, citing weak second-quarter deliveries in the U.

At the time of writing, S&P 500 futures are down 0.6% slightly below the psychological level of 6,000. Down futures ease over 240 points, and slides to near 42,720.

Wholesale data showed milder inflationary pressures while Trump renewed his threat to impose "take it or leave it" tariffs on trading partners.

Oil prices leaped, and stocks slumped on worries that escalating violence following Israel’s attack on Iranian nuclear and military targets could damage the flow of crude around the world, along with the global economy.

Monday’s bullish push has pared back some of last week’s late losses, pushing the Dow Jones Industrial Average back above 42,500. However, the major equity index remains embroiled in a consolidation zone that has plagued the Dow since mid-May.

The Dow dropped more than 750 points Friday as investors fret over the risk of a widening war in the Middle East.

Chinese media outlet Xinhua reported Thursday that President Donald Trump and China President Xi Jinping held a phone call.