Stock market today: Dow, S&P 500, and Nasdaq pare losses as oil rises amid war worries

March 4, 2026 - 02:37

A fresh wave of Israeli-led attacks has jolted financial markets, which on Monday had mostly managed to shake off the initial shock of the weekend's outbreak. Early Tuesday trading saw significant volatility, with major indices dipping into negative territory as investors sought safer assets. The heightened geopolitical tensions fueled a sharp rise in oil prices, stoking concerns over broader inflation and economic stability.

However, in a display of resilience, U.S. equities pared their steepest losses through the afternoon. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite each climbed off their session lows, signaling a tentative calm among traders assessing the situation's global implications. The market's partial recovery suggests investors are cautiously weighing the conflict's potential scope against a still-strong domestic economic backdrop.

The primary focus remains on the risk of a wider regional war, which could disrupt critical energy supplies and shipping lanes. This uncertainty is expected to maintain pressure on commodity prices and ensure continued market sensitivity to headlines from the Middle East in the coming days. Analysts note that while the immediate panic has subsided, a new ceiling for volatility has likely been established until the geopolitical picture becomes clearer.