Market Indexes Fight Off Deep Lows 2nd-Straight Day

• Oil prices reached their highest levels since July 2024, with WTI at $81/barrel and Brent crude at $85/barrel, amid fears Iran could close the Strait of Hormuz which transports 20 million barrels of oil daily
• The Dow recovered approximately 400 points from its intraday low, the S&P 500 lost 0.56%, the Nasdaq declined 0.26%, and the Russell 2000 fell 1.95%
• After-hours earnings included Costco posting its fourth consecutive quarterly beat at $4.58 per share, Gap meeting estimates at $0.45 per share, and Marvell Technology slightly beating on both top and bottom lines with $0.80 per share

Market Summary: Indexes Recover from Intraday Lows Amid Middle East Tensions

Date: Thursday, March 5th, 2026

Market Performance

U.S. equity indexes recovered from steep intraday losses for the second consecutive day, though still closed in negative territory. The Dow Jones fell 784 points (-1.61%) after being down 1,200 points during afternoon trading. The S&P 500 declined 38 points (-0.56%), the Nasdaq dropped 58 points (-0.26%), and the Russell 2000 lost 51 points (-1.95%).

Key Market Driver: Oil Price Surge

Oil prices reached their highest levels since July 2024, driven by concerns over potential closure of the Strait of Hormuz amid Middle East tensions. WTI crude climbed to $81 per barrel, while Brent crude hit $85 per barrel. The strait is critical to global oil supply, handling 20 million barrels per day—a volume that cannot be easily replaced through alternative sources.

After-Hours Earnings

Costco (COST) reported its fourth consecutive quarterly earnings beat at $4.58 per share.

Gap Inc. (GAP) met Q4 estimates at $0.45 per share.

Marvell Technology (MRVL) posted slight beats on both revenue and earnings in its Q4 report, with earnings of $0.80 per share.

Market Implications

Geopolitical risks in the Middle East continue to pressure markets, with energy security concerns driving volatility. The market's ability to recover from intraday lows suggests some investor resilience, though small-cap stocks (Russell 2000) showed relative weakness, indicating risk-off sentiment persists.