Opening Comment — Tuesday, March 03, 2026
DJIA: 48,904.78, down 73.14
S&P 500: 6,881.62, up 2.74
NASDAQ: 22,748.86, up 80.65
Stocks lower as conflict continues
Stock futures are lower Tuesday morning amid the ongoing Middle East conflict, with oil prices continuing to rise sharply following Iran reportedly closing the Strait of Hormuz. Markets may be anticipating fewer Federal Reserve (Fed) rate cuts this year as concerns over inflation have risen. In terms of economic data, market participants are looking forward to tomorrow’s release of the Institute for Supply Management (ISM) February services purchasing managers’ index (PMI) and the Fed’s March Beige Book survey of regional economic conditions. As of 7:20 AM ET, the Dow is decreasing 1.5%, while the S&P 500 is down 1.4%. The Nasdaq 100 is falling 1.9% relative to fair value on the GLOBEX.
U.S. equities were mixed on Monday as investors digested the news from over the weekend and assessed new developments. Meanwhile, the Institute for Supply Management’s manufacturing purchasing managers’ index (PMI) for February declined less than anticipated to 52.4, while the prices paid component rose significantly more than expected. The Dow was down 0.2%, while the tech-heavy Nasdaq Composite rose 0.4%. The S&P 500 was little changed with four of 11 sectors finishing in positive territory. The Energy sector was the top performer, rising 2.0%, while the Consumer Staples sector was the bottom performer, falling 1.4%.
Across the pond, European stocks are lower in mid-day trading as the eurozone’s preliminary February headline and core Consumer Price Index (CPI) rose more than expected, coming in at 1.9% and 2.4% year over year (YOY), respectively.
Overnight in Asia, stocks were mostly lower as Japan’s jobless rate rose to 2.7% in January, compared to the prior month’s 2.6%, and the job-to-applicant ratio fell to 1.18. The country’s capital spending rose 6.5% YOY in the fourth quarter, exceeding expectations. Meanwhile, Australia’s building approvals unexpectedly declined, falling by 7.2% month-over-month in January. South Korea’s manufacturing PMI for February fell to 51.1
In FOREX trading, the U.S. dollar is higher following market uncertainty.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 8.1% higher at $76.98/barrel following the cessation of production in several countries and transportation disruptions.
In the metals complex, gold is 3.2% lower at $5,150.31/ounce following a strengthening U.S. dollar.