Traders work on the floor of the New York Stock Exchange (NYSE) on March 3, 2026 in New York City, USA.
Brendan McDiarmid | Reuters
Stocks remained volatile on Tuesday as concerns over a protracted conflict between the United States and Iran spooked markets, but comments from President Donald Trump appeared to ease some of those concerns.
of Dow Jones Industrial Average It lost 403.51 points (0.83%) and finished at 48,501.27. of S&P500 It fell 0.94% to close at 6,816.63. Nasdaq Composite It fell 1.02% to settle at 22,516.69. At the day’s lows, the S&P 500 was down 2.5% and the Nasdaq was down about 2.7%. The Dow Jones Industrial Average (30 stocks) fell more than 1,200 points (approximately 2.6%) to its bottom.
Dow Jones Industrial Average, 2 days
President Trump said Tuesday afternoon that the U.S. Navy would escort tankers through the Strait of Hormuz if necessary.
“No matter what, the United States will ensure the free flow of energy to the world,” he said in a post on Truth Social. “America’s economic and military power is the greatest on earth, and more action will follow.”
brent crude oilthe global benchmark settled at 4.71%. This was far from the day’s high and followed a 6% jump on Monday. WTI crude oil has also broken out from its high and settled at 4.68%. It rose 6% in the previous session. Both rose by more than 9%.
The day’s first spike in energy prices pushed up Treasury yields on concerns that rising prices could spark a resurgence in inflation, just as U.S. investors look to the Federal Reserve for further interest rate cuts to boost the economy. However, the rate of increase in yields has since slowed down along with oil prices.
Trade concerns worsened after Iran’s Revolutionary Guards commander said the Strait of Hormuz, the world’s most important oil shipping route, was closed and that Iran would set fire to ships attempting to pass through it. President Trump’s warning that the conflict could last more than four weeks also exacerbated tensions. As the conflict entered its fourth day, there were other signs of further escalation.
The US embassy in Saudi Arabia’s capital Riyadh has been attacked by a drone as Iran intensifies its attacks on the country. The State Department ordered the evacuation of personnel from Bahrain, Iraq, and Jordan. Hezbollah, backed by Tehran, attacked Tel Aviv with missiles and drones. There are growing concerns about how well air defenses in Gulf states like the United Arab Emirates can hold back a barrage of Iranian missiles and drones.
“I think the potential for a longer mandate could weigh on the market in the coming weeks,” Jeffrey O’Connor, head of U.S. equity market structure at Liquidnet, told CNBC. “I think the possibility of a longer mandate could weigh on the market in the coming weeks,” he said, citing the possibility that oil prices will remain high and investors will have to juggle future developments in inflation, yields and expectations for rate cuts.
“Historically, the US market has been able to overlook geopolitical shocks like this, but with that said, the Strait of Hormuz is closed,” he continued. Given that around 20% of the world’s oil consumption passes through the strait, the continued closure of the strait “cannot be overlooked,” O’Connor added.
Every sector of the S&P 500 was in the red on Tuesday. Materials and industrial stocks suffered the most losses on concerns that rising oil prices and borrowing costs could weigh on the U.S. economy.
Some major tech stocks NvidiaIt led an intraday rally on Monday, but fell on Tuesday. Following the notable decline in Korean memory chip stocks, US memory stocks also fell. moreover, black stone The company fell 3.8% after the Financial Times reported that its private credit fund had a net outflow of $1.7 billion in the first quarter.
There was little place to hide on Tuesday, with gold prices also plummeting after Monday’s gains. of CBOE Volatility IndexWall Street’s fear gauge jumped to its highest level since November.
