A fresh wave of Israeli-led attacks stoked new fears about the breadth of the conflict, as oil surged again.
U.S. stocks sold off on Tuesday after Israel and U.S. jets launched new strikes on Iran, as the widening conflict stoked worries about a drawn-out regional war.
The S&P 500 (ES=F) slid down by roughly 1.6%, while the Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) both dived a steeper 1.8% as oil prices continued to rally on concerns about blocked supply.
The fresh wave of Israeli-led attacks has jolted markets that on Monday mostly managed to shake off the initial shock of the outbreak of US-Iran hostilities. The major US gauges staged a comeback from that day’s steep intraday losses to close mostly higher, as dip-buyers stepped in.
The air strikes on Iran and Lebanon intensify a conflict that Wall Street expects to pressure global markets. The focus is now on Tehran’s response after Iran targeted oil infrastructure and other targets across a huge swathe of the region, with at least nine countries reporting hits.
President Trump fueled fears that the US would be drawn into a prolonged war, as he refused to rule out putting American boots on the ground. “Whatever the time is, it’s OK — whatever it takes,” Trump said. “Right from the beginning, we projected four to five weeks. But we have the capability to go far longer than that.”
Crude prices (BZ=F, CL=F) continued to rise on concerns of disruption to key supply routes, up over 8.5% as inflation worries grew. Meanwhile, gold (GC=F) prices turned lower after a four-day rally, slipping more than 3%.
Beyond geopolitics, investors are watching corporate earnings. Shares in Target (TGT) rose in premarket after the retail giant posted lackluster holiday and full-year sales that met Wall Street estimates. Results from Ross Stores (ROST), AutoZone (AZO), and Best Buy (BBY) are also on Tuesday’s docket.
Daily Market Coverage Mar. 3, 2026 9AM-11AM (ET) | Yahoo Finance
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