Wall Street Stocks Struggled as Iran War Weighed On Market Sentiment

Barry Adams
05 Mar, 2026
New York City

Wall Street stocks headed lower in early trading on Thursday amid growing signs that the conflict in the Middle East is likely to drag on.

The S&P 500 index decreased 0.3%, and the tech-heavy Nasdaq Composite fell 0.4% as the U.S.-Iran conflict spreads to a wider region in the Middle East.

At least twelve nations in the region are involved in the latest military conflict, as Iran stepped up missile strikes at the U.S. assets and military bases in Qatar, UAE, Kuwait, Bahrain, Syria, Saudi Arabia, and Jordan.

Crude oil prices rose 3% to $76.46 a barrel, and worries of global energy supply disruptions remained high following the closure of the Strait of Hormuz for the third consecutive session. 

Iran's primitive and two-decade-old drones are managing to penetrate air defense covers in the UAE and Qatar, rapidly exhausting U.S. missile resources and straining relationships in the region. 

So far, a barrage of attacks by Israel and the U.S., despite causing severe damage to Iran's military assets, has failed to dent Iran's ability to inflict severe pain on allies in the Middle East. 

On the economic front, the weekly initial claims of jobless benefits are likely to confirm slow-hire and slow-fire labor conditions later today. 

Investors are awaiting the release of quarterly results from Costco, Kroger, Burlington Stores, and Marvell Technology. 

 

U.S. Movers 

Broadcom advanced 7.4% to $341.05 after the advanced chip designer posted strong results for the fiscal first quarter ending on February 2, 2025. 

Revenue jumped 29% to $19.3 billion from $14.9 billion, net income advanced 34% to $7.3 billion from $5.5 billion, and diluted earnings per share rose to $1.50 from $1.14 a year ago. 

The company held its quarterly cash dividend at 65 cents, payable on March 31 to shareholders on record on March 23. 

Broadcom estimated fiscal second quarter revenue to rise by 47% to $22 billion and announced a new stock repurchase program worth $10 billion.