Updated March 2, 2026, 2:04 p.m. ET
The stock market overcame an earlier decline by the afternoon of March 2, a good sign for investors following initial concerns in the wake of the United States and Israel attacks on Iran.
The Nasdaq Composite was at 0.64% as of 1:40 p.m. after a previous drop of 1.6%, according to CNBC. The S&P 500 was trading around the flatline after falling to a low of 1.2%, while the Dow Jones Industrial Average was down just 80 points (0.2%) after dropping nearly 600 points earlier in the day.
The rebound is promising for the market, which initially suffered amid potential long-term impacts of the conflict in the Middle East.
The drops came on the heels of airstrikes in Iran, which began Feb. 28 and resulted in the death of Supreme Leader Ayatollah Ali Khamenei. The strikes have reportedly killed hundreds throughout the region, including four U.S. service members.
The situation in the oil-rich region has already led to uncertainty reflected in the market, with crude prices rising 8% as of March 2, according to USA TODAY. Airlines are also being impacted, as companies like Delta and United each dropped more than 5% in premarket trading.
Analysts at TD Securities said, “We expect markets to react more broadly to this weekend’s attacks than other recent geopolitical events,” in a March 1 analyst, according to USA TODAY.
The Iran attacks have continued what had already been a tumultuous few weeks for the stock market dating back to late January. The repeated gains and losses were fueled by factors such as the Supreme Court ruling against President Donald Trump’s tariffs and concerns over artificial intelligence.
