US stocks fall amid Wall Street concerns over Iran conflict

New York – US stocks posted significant losses on Tuesday (3/3), though major indices recovered from a sharp sell-off earlier in the session, as investors faced worries over military operations in Iran and the Middle East. The Dow Jones Industrial Average fell 0.83% to 48,501.27. The S&P 500 declined 0.94% to 6,816.63, while the Nasdaq Composite dropped 1.02% to 22,516.69, as reported by Xinhua. All 11 major sectors in the S&P 500 ended in the red, with materials and industrials leading declines, down 2.69% and 1.96% respectively. The financial sector posted the smallest loss, down 0.18%. Market anxiety rose as investors worried the conflict could widen and trigger further military involvement. The Cboe Volatility Index, Wall Street’s fear gauge, surged 9.93% to its highest level in three months. In energy markets, Brent crude and U.S. West Texas Intermediate (WTI) crude both closed up more than 4.5% for the session, marking a significant retreat from their intraday highs. The initial energy-price surge had briefly pushed up U.S. Treasury yields due to fears prolonged energy shocks could rekindle inflation, complicating the Federal Reserve’s rate-cut plans. However, yields later pared gains as oil prices cooled. Despite the volatility, some analysts viewed the market reaction as a reassessment rather than outright panic. “It isn’t a move suggesting investors believe this will have a meaningful long-term impact on the stock market. If that were the case, you would likely see a five-percent decline. It seems more like investors are adjusting expectations from a very short-lived conflict that could last a few weeks,” said CIO David Miller of Catalyst Funds. U.S. energy giants, including Exxon Mobil, Chevron, Marathon Petroleum, Occidental Petroleum, and Phillips 66, reversed and closed lower after gains earlier in the session. Similarly, defence contractors such as Lockheed Martin, RTX and Northrop Grumman edged down after a sharp bounce on Monday (3/2). In company earnings news, Target shares rose 6.74% after the retailer issued full-year earnings and revenue guidance that topped market expectations. Meanwhile, other earnings moves saw Plug Power leap 23.2%, while MongoDB fell 22.24% on management reshuffles and cautious near-term guidance triggering a broad sell-off not aligned with the firms’ fundamentals.