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

March 4, 2026 - 04:49

A renewed surge in oil prices, driven by escalating geopolitical tensions in the Middle East, sent major U.S. stock indices lower on Tuesday. The market downturn marked a reversal from the previous session, where investors had shown resilience following the initial outbreak of violence.

The fresh wave of Israeli-led attacks has jolted markets that on Monday mostly managed to shake off the initial shock. The primary concern for traders is the potential for the conflict to disrupt global energy supplies, pushing crude oil prices sharply higher. This spike reignites fears of persistent inflation, complicating the economic outlook and putting pressure on corporate profits.

The Dow Jones Industrial Average, the S&P 500, and the technology-heavy Nasdaq Composite all closed in negative territory. The sell-off was broad-based, with particular weakness in sectors sensitive to higher fuel and input costs, such as airlines and industrials. The rising oil prices act as a tax on consumers and businesses, threatening to slow economic growth while central banks remain focused on curbing price increases.

Investors are now closely monitoring the situation for any signs of a wider regional conflict that could further destabilize energy markets. The mood on trading floors remains cautious, with many seeking safer assets amid the heightened uncertainty. Market analysts suggest volatility is likely to persist until the geopolitical landscape shows signs of stabilization.