S&P 500 index turns positive, reversing drop of 0.5%

The S&P 500 index staged a significant intraday reversal on March 10, 2026, closing up 0.83% after opening the session down 1.5%. This 2.3% swing from session lows to the closing price marked one of the largest single-day reversals since the 2008 financial crisis, reflecting heightened market volatility driven by geopolitical tensions and energy price fluctuations. The Dow Jones Industrial Average mirrored this pattern, surging 239 points at the close after hitting a intraday low of -886 points.

The initial selloff was fueled by oil prices exceeding $100 a barrel, as military strikes between the U.S., Israel, and Iran disrupted tanker traffic through the Strait of Hormuz. West Texas Intermediate crude futures surged 35% in the preceding week, raising fears of stagflation and pushing the 10-year Treasury yield to 4.18%. However, the reversal gained momentum after reports surfaced that G7 finance ministers were considering releasing strategic oil reserves to alleviate supply constraints. Further relief came as former President Donald Trump stated on CBS News that the conflict was "very complete, pretty much," causing oil prices to plummet.

The Nasdaq Composite and Russell 2000 also posted gains, closing 1.38% and 1.12% higher, respectively. Despite the rally, the 10-year Treasury yield remained near a one-month high at 4.13%, indicating lingering inflationary concerns. Analysts noted that the market's shift from a "recession trade" to an "inflation trade" remains uncertain, with bond yields and oil prices serving as key indicators. The S&P 500's performance underscores the fragility of investor sentiment amid overlapping risks of energy shocks and economic slowdowns.