Wall Street closes down as oil prices spike on Middle East conflict
By Sabrina Valle and Johann M Cherian
Thu March 5, 2026
It appears that Trump’s move to placate the oil markets by ordering U.S. naval escorts for oil tankers in the Strait of Hormuz lasted only one day as today huge rout turned into a repeat of Tuesday’s with the only difference being that Tuesday recovery after a huge morning drawdown began mid-morning whereas an equally huge drawdown today didn’t begin a recovery until mid-afternoon. At 2:30 pm, the Dow was down almost 1200, the Nasdaq 300, the S&P 100 as oil prices went from $65/barrel last Friday to $71 on Monday to $85 today.
After only five days, the feared benchmark of $100/barrel is coming quickly as the worst-case scenario of a prolonged conflict begins to sink in. As today’s expert put it, “Oil tells you everything you need to know about why the market’s down.” Ironically, the rapid spike in oil is benefitting energy stocks which has been helpful in limiting losses. Other good news includes no change in applications for unemployment and stronger manufacturing and services numbers have also helped boost unofficial payrolls. All eyes are then on the official payroll numbers coming tomorrow but with today’s selloff, any good news is likely already discounted. Volume at 22.3 billion is way above the 17.8 4-week average.
DJ: 48,739.41 +238.14 NAS: 22,807.48
+290.79 S&P: 6,869.50 3/4
DJ: 47,954.74 -784.67 NAS: 22,748.99
-58.50 S&P: 6,830.71
-38.79 3/5
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