Stock market today: Dow falls more than 1,000 points, S&P 500 and Nasdaq tank as Iran war jitters return with another oil surge

March 6, 2026 - 00:10

A severe sell-off gripped U.S. markets, with major indices plummeting as investor anxiety over the Middle East conflict intensified. The Dow Jones Industrial Average plunged over 1,000 points, while the S&P 500 and Nasdaq Composite also posted steep losses, erasing gains from a tentative rally earlier in the week.

The sharp decline was fueled by renewed fears of a widening war in the Middle East, now in its sixth day. These geopolitical jitters triggered a fresh surge in global oil prices, stoking concerns about prolonged inflation and more aggressive interest rate policies from the Federal Reserve. The combination presents a dual threat to the economic outlook: higher energy costs could dampen consumer spending and corporate profits, while persistent inflation may delay anticipated rate cuts.

The dramatic drop underscores the market's extreme sensitivity to developments abroad, with traders swiftly moving to de-risk portfolios. The volatility has ended a period of relative calm, reminding investors that the path ahead remains fraught with uncertainty. All major sectors finished deeply in the red, reflecting a broad-based retreat from risk assets as the flight to safety dominated trading sentiment.