Early losses in S&P 500 E-minis trimmed to flat levels, Nasdaq Composite futures up 0.1%

Early losses in S&P 500 E-minis trimmed to flat levels, Nasdaq Composite futures up 0.1%

Market Volatility Persists as Middle East Tensions Influence Futures
March 3, 2026

U.S. stock futures showed mixed early movement on Wednesday, with S&P 500 E-minis narrowing previous session losses to flat levels, while Nasdaq Composite futures rose 0.1%. The partial rebound followed a sharp selloff the prior day, when the Dow Jones Industrial Average (^DJI) fell 0.8% (approximately 400 points), the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) each dropped 1%, and oil prices surged on fears of disrupted supply chains amid escalating U.S.-Iran tensions according to market data.

The market's intraday swings reflect heightened sensitivity to geopolitical risks. Fresh strikes in the Middle East, coupled with Iran's targeting of regional oil infrastructure, have intensified concerns about prolonged conflict and inflationary pressures. President Trump's assertion that the U.S. would "do whatever it takes to win the war" and provide military escorts for tankers through the Strait of Hormuz temporarily stabilized crude prices, which had earlier climbed to multi-week highs. However, traders remain cautious, with gold prices retreating up to 4% as the U.S. dollar strengthened.

Investors are closely monitoring developments, as any escalation could reignite inflationary fears and disrupt global energy markets. While futures suggest a tentative pause in the selloff, underlying uncertainties—including Tehran's potential retaliatory measures and the duration of hostilities—continue to weigh on sentiment. Analysts note that markets may remain volatile until clearer signals emerge regarding the conflict's trajectory and central bank responses.

With equities fluctuating and energy prices volatile, investors are advised to monitor geopolitical updates and policy developments for near-term guidance.

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