U.S. stocks have been mixed on Monday, shaking off early morning losses tied to escalating conflict in the Middle East as investors rotated into energy and defense names while trimming exposure to travel and select tech shares.
Stocks Whipsaw as Middle East Conflict Lifts Energy and Defense SharesBy noon, the Dow Jones Industrial Average slipped 0.08% to 48,936.56 after falling more than 500 points earlier in the session. The S&P 500 edged up 0.06% to 6,883.21, and the Nasdaq Composite rose 0.35% to 22,746.56, rebounding from steeper session declines logged in the morning.
Analysts have projected U.S. defense spending at roughly $961.6 billion for fiscal 2026, up from prior years, amid administration calls for expanded budgets. Some strategists cautioned that sharp, single-session moves can reflect positioning adjustments as much as long-term earnings revisions.
Investors are now focused on Wednesday’s ISM services report and Friday’s nonfarm payrolls data, with economists expecting about 60,000 jobs added in February and the unemployment rate near 4.3%. Retail sales figures later in the week are projected to show modest growth of 0.1%.
FAQ Why did the stock market move on March 2, 2026? U.S.-Israel strikes on Iran pushed oil and gold higher, driving volatility and sector rotation in U.S. equities. Which sectors led the market today? Energy and defense stocks outperformed, while airlines and cruise operators lagged. How did the Dow, S&P 500 and Nasdaq close? The Dow fell 0.08%, the S&P 500 rose 0.06%, and the Nasdaq gained 0.35%. What economic data are investors watching this week? Traders are focused on ISM services data and Friday’s U.S. jobs report for clues on growth and Federal Reserve policy.
