President Trump has pledged retaliatory strikes against Iran following a recent action, threatening to expand the conflict and dim diplomatic hopes. By early afternoon, the president was still considering his options for where and how forcefully to strike, according to a senior administration official. The official indicated Trump was "not surprised" by Iran's move and is "in an escalatory mood."

In other news, Meta is investing billions in artificial intelligence to compete with rivals, though its stock fell about 10% in after-hours trading. Microsoft reported strong cloud growth and an increase in AI subscribers, with investors watching its data center spending.

Meanwhile, the Federal Reserve held interest rates steady for a second consecutive meeting, maintaining them in a range of 3.5% to 3.75%. This decision leaves inflation concerns unaddressed, as inflation has exceeded the Fed's target for five years, sparking market fears regarding Chairman Kevin Warsh's vow to combat rising prices.