Stock Market Today: Dow Jones Futures Plunge 700 Points, S&P 500 and Nasdaq Crater as Oil Prices Hit $84 on Iran War and Strait of Hormuz Crisis

Wall Street is in full retreat. Dow Jones futures have crashed more than 700 points Tuesday morning, March 3, 2026 ET, as a widening US-Iran conflict enters its fourth day and oil prices today surge to their highest levels since last summer. The S&P 500 and Nasdaq composite are both deep in the red at the open, reversing Monday's hard-fought comeback entirely.

Dow Jones Futures and S&P 500 Futures: Where Markets Stand Right Now

As of 8:00 AM ET Tuesday, Dow Jones Industrial Average futures dropped approximately 707 points, or 1.45%. S&P 500 futures declined by 1.66%, while the tech-heavy Nasdaq 100 futures plunged 2.17%.

US equities tumbled on Tuesday, undoing a Monday equity comeback, as oil prices spiked again and traders began to worry the US-Iran conflict could drag on longer than anticipated. The Dow Jones Industrial Average lost 844 points, or 1.7%, while the S&P 500 slipped 1.7% and the Nasdaq Composite was down 2% in early trading.

The SPDR S&P 500 ETF, widely tracked as SPY stock, fell 1.64%, or $11.23. The VIX, Wall Street's fear gauge, surged to 25.40 — up $5.53 on the session — signaling elevated anxiety across US stock market participants.

Monday's Close: How the DJIA and Nasdaq Composite Finished

Monday's session was a rollercoaster that ended just above flat. The S&P 500 inched up 0.04% to close at 6,881.62, while the Nasdaq Composite advanced 0.36% to 22,748.86. The Dow Jones Industrial Average dropped 73.14 points, or 0.15%, to 48,904.78. The broad market index cut its losses after falling 1.2% at its lows during the session.

Investors bought heavily into the tech leaders of the bull market — Nvidia and Microsoft — as cash-rich companies expected to be resilient to any war impact. Defense stocks also led: Northrop Grumman gained 6%, Palantir Technologies rose 5.8%, and drone maker AeroVironment jumped more than 10%.

The dip-buying playbook worked Monday, but it is failing Tuesday. After initially taking the Middle East war in stride, market anxiety ratcheted higher overnight amid concerns that a leaderless Iranian government and military could execute a prolonged retaliatory response targeting key economic and energy infrastructure for weeks to come.

Oil Prices Today: Brent Crude Hits $84, WTI Tops $77 as Strait of Hormuz Closes

Brent crude oil prices today are trading at $84.18 per barrel, up nearly 15% from the previous trading day. WTI crude oil is at $77.00 per barrel, up 14.40% from the prior session and up nearly 17% from one week ago at $65.90.

Brent crude topped $84 a barrel Tuesday, up 8% on the session following a 6% spike Monday. WTI crude jumped 8% to above $77 per barrel after an identical 6% jump the previous day. Iranian Revolutionary Guard commanders declared the Strait of Hormuz closed, warning they would set ablaze any ships attempting to pass through the world's most vital oil transit route.

Barclays analysts warned clients that Brent could hit $100 per barrel as the security situation in the Middle East spirals. UBS analysts went further, calling it possible that the market faces a material disruption that sends Brent spot prices above $120 per barrel. "How this ends is extremely uncertain at this point, but in the meantime oil markets will have to face their worst fears," one Barclays analyst wrote.

Inflation Warning: Energy Shock Threatens US Economy and Fed Policy

Higher global energy prices mean consumers will pay more at the pump and for groceries at a time when many are already feeling the impacts of inflation. Eight OPEC+ members announced production increases of 206,000 barrels per day in April to help offset supply concerns — more than analysts had been expecting — but the move has failed to calm oil markets.

US factory activity expanded at a slightly slower pace in February as the number of companies reporting higher input prices soared. The ISM manufacturing index posted a reading of 52.4, down from 52.6 in January, with the price components accelerating sharply — a troubling sign for Federal Reserve policymakers already watching the Middle East conflict closely.

Global currencies swung widely Tuesday as foreign exchange traders priced in the effects of what has become an increasingly broad supply-side inflationary shock. The dollar is gaining on an index basis and against a basket of other currencies, as the market assesses that the US is less exposed to direct physical supply disruption — though not immune.

Magnificent Seven Stocks Under Pressure: Nvidia, Tesla, Apple Fall Premarket

The Magnificent Seven tech giants faced collective pressure in premarket trading Tuesday. Nvidia fell over 3% despite the company announcing its GTC 2026 conference for later this month. Apple declined more than 1% following the launch of its low-cost iPhone 17e. Tesla shed over 2%, and Google dropped 2% amid broader tech weakness.

Semiconductor stocks are being repriced sharply to the downside. Micron, Sandisk, and Lumentime are off 6%, while Western Digital, ASML, and Taiwan Semi are down 5%. The Philadelphia Semiconductor Index is set to open approximately 8% below its record high.

Target and Best Buy Earnings Offer Bright Spots in a Dark Session

Not everything is red on the tape Tuesday. Target jumped more than 3% on better-than-expected earnings for the fourth quarter. The retailer earned an adjusted $2.44 per share, topping the $2.16 per share analysts were anticipating, while revenue of $30.45 billion came in just below consensus.

Best Buy rallied more than 9% after posting adjusted per-share earnings of $2.61 in the fourth quarter, better than the $2.47 analysts were expecting. Revenue of $13.81 billion fell short of the consensus estimate of $13.88 billion, but investors focused on the earnings beat and upbeat same-store sales guidance for the first quarter of 2026.

The S&P 500 closed February in negative territory — down almost 1% for the month — before the war erupted over the weekend. The Nasdaq-100 dropped 2.3% in February. The SPX is up only marginally for the year while the Nasdaq-100 is down 1.1% in 2026. Heading into Tuesday's open, the S&P 500 was testing a critical 6,800 support level that analysts say must hold to avoid triggering broader short-selling pressure across the US stock market.