Market Summary: What Happened Yesterday and What Awaits Us Today (March 6)

Oil Shock Hits Global Markets... Losses on Wall Street and Widespread Market Volatility

US equities closed sharply lower on Thursday as rising geopolitical tensions in the Middle East rattled investors and pushed energy prices higher. Reports that Iran had targeted an oil tanker in the Strait of Hormuz, one of the world’s most critical oil shipping routes, triggered a wave of risk-off sentiment across global markets.

The Dow Jones Industrial Average led the decline, falling about 785 points, or 1.6%, while the S&P 500 lost 0.6%. The Nasdaq Composite held up better but still slipped 0.3%, as weakness in cyclical sectors offset resilience in some technology stocks.

The drop came just one day after markets staged a rebound, with the Dow snapping a three-session losing streak in Wednesday’s trading.

Within the Dow, selling was broad-based, with 24 of the 30 components ending the day lower. Goldman Sachs, Walmart, and Caterpillar were among the biggest laggards, each falling more than 3%. By contrast, Salesforce stood out on the upside, gaining over 4%.

Nvidia also drew attention after reports that the US government may introduce new restrictions on exports of advanced AI chips. The stock recovered from earlier losses and finished the session slightly higher, up around 0.2%, while Microsoft led gains among the megacap tech names with a 1.4% rise.

Oil surge drives market caution

Energy markets remained the key driver of sentiment. West Texas Intermediate (WTI) crude briefly climbed above $82 per barrel, its highest level since July 2024, after Iran announced the tanker attack.

Prices later eased slightly but still traded near $80 per barrel, marking a weekly gain of nearly 19% as investors priced in the risk of supply disruptions through the Strait of Hormuz.

Higher oil prices also pushed bond yields upward. The yield on the 10-year US Treasury rose to around 4.13%, up from 4.10% the previous session and significantly above last week’s 3.95% level.

Precious metals pulled back despite the geopolitical tension. Gold fell about 1% to roughly $5,085 per ounce, while silver declined 1.2% to around $82.15.

The US dollar index strengthened 0.3% to 99.04, reflecting continued demand for safe-haven assets.

In the crypto market, Bitcoin remained volatile. The cryptocurrency dropped to around $63,000 following the initial attacks earlier in the week before recovering to trade near $71,200, though still below its recent highs above $73,500.

Earnings and corporate developments also drove notable stock moves. On the upside, Broadcom rose 4.8%, Kroger climbed 5.3%, and Burlington Stores surged 6.7% following their latest financial results.

Meanwhile, Ciena fell about 13%, leading losses on the S&P 500, while StepHub declined roughly 12%. Costco slipped 2.4% ahead of its earnings release after the market close.

One standout was Trade Desk, which jumped 18% after reports that OpenAI had held preliminary discussions with the company about potential advertising partnerships.

Elsewhere, global markets reflected a cautious tone. Asian markets closed mixed. Japan’s Nikkei 225 declined amid pressure from higher energy costs, while Hong Kong’s Hang Seng posted modest gains led by technology stocks. China’s Shanghai Composite traded largely flat as investors monitored geopolitical developments.

In Europe, equities broadly moved lower, with the Stoxx Europe 600 slipping as airline and industrial stocks came under pressure from rising oil prices and escalating geopolitical risks.

Market outlook

Looking ahead, analysts expect continued volatility in global markets as investors track developments in the Middle East and monitor oil price movements.Traders will also focus on upcoming US economic data, which could provide further clues about inflation trends and the future policy path of the Federal Reserve.