Market Commentary: Tuesday 3rd March

Stocks extended their selloff as the conflict between the US, Israel, and Iran intensified, pushing oil higher and reviving inflation concerns. S&P 500 futures fell 0.9% and Nasdaq 100 futures dropped 1.1%, with European futures also pointing sharply lower. Asian equities slumped 2.9%, marking the worst two-day decline since April, while South Korea’s Kospi tumbled 7.2% as markets reopened after a long weekend.

Oil remained the focal point, with Brent climbing back toward $80 a barrel after a surge of more than 7% in the prior session, as Iran threatened to close the Strait of Hormuz. The jump in crude added to concerns that higher energy prices could delay Fed easing, prompting traders to scale back rate-cut expectations. US 10-year yields rose to 4.06% as government bonds were sold across major markets.

The dollar strengthened as investors sought safety, while gold and silver reversed earlier gains to trade lower in volatile conditions. Markets are now weighing whether this proves to be a short-lived spike in geopolitical risk or a more prolonged shock that begins to weigh on global growth.

• S&P 500 futures −0.9%
• Nasdaq 100 futures −1.1%
• US 10-year yield +3 bps to 4.06%
• Bitcoin −2.0% to $68,035
• Gold −0.3% to $5,305
• WTI +2.4% to $72.94

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