The Dow Jones Industrial Average fell to its lowest intraday level amid heightened tensions following reported U.S. military strikes against Iranian targets. Energy and defense-related equities rallied sharply, with crude oil futures spiking and select materials stocks posting double-digit gains.
- DJIA dropped 278 points (0.8%) by close, reaching session lows after U.S.-Iran military actions
- CL=F crude futures rose 6.3% to $92.40/bbl on supply disruption fears
- XLF energy ETF gained $1.2B in early trading, with XOM and CVX up 5.1% and 4.7%
- LMT and RTX rose 8.2% and 7.9%, signaling defense sector strength
- NTR surged 12.3% amid fertilizer supply chain concerns
- 10-year Treasury yield climbed to 4.32% on heightened risk premium
The U.S. stock market opened lower on March 2, 2026, as news of coordinated military actions between U.S. forces and Iranian defense assets triggered immediate market volatility. The Dow Jones Industrial Average (DJIA) dipped as much as 420 points, marking its worst intraday decline of the session, before partially recovering. The benchmark index ended the day down 278 points, or 0.8%, amid growing concerns over regional instability and potential supply disruptions. Energy markets reacted sharply to the escalation, with West Texas Intermediate crude futures (CL=F) surging 6.3% to $92.40 per barrel—its highest level since October 2025. The price spike reflected fears over reduced oil flows from the Strait of Hormuz, a critical shipping lane. Energy sector ETFs (XLF) saw inflows exceeding $1.2 billion in early trading, driven by gains in major integrated oil producers including ExxonMobil (XOM) and Chevron (CVX), which rose 5.1% and 4.7%, respectively. Defense and aerospace stocks also posted strong gains, with Lockheed Martin (LMT) up 8.2% and Raytheon Technologies (RTX) gaining 7.9% on expectations of increased defense spending. The materials sector saw notable activity, particularly in fertilizer producers; Nutrien (NTR) jumped 12.3% on heightened demand concerns amid fears of supply chain disruptions in global agricultural exports from the Middle East. Market participants are closely monitoring developments in the Persian Gulf, with analysts warning of prolonged volatility. The Federal Reserve has not yet commented on potential economic impacts, but traders are adjusting forward rate expectations, with 10-year Treasury yields rising to 4.32%.