March 5, 2026
Wall Street's major indices closed higher on Wednesday. A moderation in military tensions between the US/Israel and Iran caused oil prices to retreat from recent gains, while concerns about a slowdown in US economic growth also eased. At the close, the Dow Jones Industrial Average rose by 238.14 points, or 0.49%, to 48,739.41. The Nasdaq Composite Index advanced 1.29% to 22,807.48, and the S&P 500 index gained 0.78% to 6,869.50.
Technology stocks bolstered the market, with the semiconductor sector showing particularly strong performance: Micron Technology and Advanced Micro Devices (AMD) both climbed more than 5%. Broadcom and NVIDIA rose 1.18% and 1.66%, respectively. Tesla Motors increased by 3.44% after Bank of America reinstated coverage of the electric vehicle maker's stock with a "Buy" rating. Amazon.com advanced 3.88%, Meta Platforms, Inc. gained 1.93%, Microsoft edged up 0.31%, while Google's parent Alphabet dipped 0.04%, and Apple declined 0.47%. On Wednesday, Apple announced on its website the new MacBook Neo laptop with a starting price of 4,599 yuan, marking its most significant push into the lower-priced notebook market.
The Nasdaq Golden Dragon China Index rose 0.80%. NetEase gained 1.32%, Pinduoduo added 0.48%, Baidu inched up 0.23%, while JD.com fell 0.94%, and Alibaba dropped 1.71%. US Treasury Secretary Besant revealed on Wednesday that the United States would announce a series of measures to ensure the security of oil transport through the Persian Gulf. Both Brent crude and West Texas Intermediate crude oil prices turned lower on Wednesday for the first time since the conflict began. Several Middle Eastern countries have temporarily halted oil and gas production, and the US is seeking to expand military operations within Iran. However, announcements of two initiatives by the Trump administration provided some relief: the US Navy will provide escorts for oil tankers transiting the Strait of Hormuz and offer political risk insurance for related shipping. Media reports suggested that Iranian intelligence personnel had contacted the CIA through indirect channels, though Iranian officials subsequently denied these reports. There remains skepticism about whether the Trump administration or Iran is prepared to de-escalate the situation in the short term. Chris Zacarelli, Chief Investment Officer at Northlight Asset Management, stated that the potential for further escalation persists. He added that US investors have shown relative resilience since the conflict began. "Unless the market perceives the Middle East situation as triggering a recession, investors are likely to remain tolerant of equities," he noted. Anthony Sagliambene, Chief Market Strategist at wealth management firm Ameriprise, cautioned that a further deterioration in the Middle East could have broader ripple effects on global markets, asset prices, and economic outlooks, but suggested it is too early to make such judgments.
Multiple economic reports released during the day exceeded expectations, significantly boosting investor confidence. US private sector employment increased by 63,000 in February, the highest since last July, while January's figure was revised down to 11,000 new jobs. The US February non-farm payrolls report is due on Friday. The US ISM Services PMI for February rose to 56.1 from 53.8 in January, reaching a three-and-a-half-year high and surpassing market expectations of 53.5. Sagliambene commented, "Current data is challenging the market's previous concerns about a softening, or even worsening, labor market. The US economic foundation appears solid." The Federal Reserve's Beige Book indicated generally optimistic economic expectations, with most districts anticipating slight to modest growth in the coming months. However, economic uncertainty, increased price sensitivity, and reduced spending by lower-income consumers were noted as factors restraining sales. New York Fed President John Williams said on Tuesday that the US economy has proven resilient to energy price shocks. Policymakers hold differing views on how the conflict might influence the Fed's monetary policy outlook. Goldman Sachs CEO David Solomon indicated that markets might need time to fully digest the impact of the conflict.
Medium and long-term US Treasury yields continued to climb. The 2-year Treasury yield, sensitive to interest rate expectations, rose 4.1 basis points to 3.541%. The benchmark 10-year yield increased 2.5 basis points to 4.081%. Pricing in federal funds rate futures suggests investors have pushed back expectations for a 25-basis-point Fed rate cut from July to September. Amid widespread safe-haven inflows triggered by the Iran conflict, total assets in US money market funds reached a record high of $8.271 trillion. According to the latest data from Crane Data LLC, approximately $49 billion flowed into money market funds in the week ending March 3.
International oil prices stabilized. The WTI crude near-month contract edged up 0.13% to $74.66 per barrel, while the Brent crude near-month contract ended flat at $81.40 per barrel. Precious metals retreated from their intraday highs. At the time of writing, the COMEX April gold futures contract was trading near $5,140 per ounce, up 0.31%, having lost the $5,200 level after briefly surpassing it. COMEX silver futures fell 0.22% to $83.29 per ounce, after earlier gaining more than 4% during the session.
Comments