Stock market today: Dow falls by 700 points, S&P 500 and Nasdaq sink as oil surges amid war worries

March 4, 2026 - 02:07

A sharp escalation in Middle East hostilities sent financial markets into a tailspin on Tuesday, erasing the fragile stability established just a day prior. Major indices plummeted as a fresh wave of Israeli-led attacks reignited deep-seated investor fears over a broadening regional war.

The Dow Jones Industrial Average plunged approximately 700 points, while the S&P 500 and Nasdaq Composite also sank significantly. The sell-off was widespread, reflecting a rapid shift from cautious optimism to a clear risk-off sentiment. The dramatic move was fueled by the looming threat of a protracted conflict that could destabilize a critical region for global energy supplies.

This anxiety manifested directly in the commodities market, where oil prices surged. The spike underscores concerns that the conflict could directly impact production or transit routes, potentially reigniting inflationary pressures. The simultaneous plunge in equities and rally in crude oil highlights a market bracing for heightened geopolitical volatility and its potential to disrupt the global economic landscape. Investors are now swiftly reassessing risks, moving away from assets perceived as vulnerable to the uncertainty. The mood on trading floors turned decidedly defensive, marking a stark reversal from Monday's attempted recovery.