Stocks declined last week as investors assessed the economic implications of a new Middle East conflict while also digesting mixed signals from the U.S. labor market. Rising oil prices and uncertainty around global trade routes contributed to volatility as the week progressed.

Key Takeaways

Escalating conflict in the Middle East pressured global markets
Oil prices surged amid disruptions to tanker traffic in the Strait of Hormuz
A weaker than expected U.S. jobs report added to economic uncertainty
Early-week dip buying gave way to broader selling later in the week

YCharts.com, March 7, 2026. Weekly performance is measured from Monday, March 2 to Friday, March 6.

Market Performance Snapshot

The S&P 500 Index declined 2.02% for the week, while the Nasdaq Composite fell 1.24%. The Dow Jones Industrial Average dropped 3.05%, reflecting broader selling pressure across cyclical sectors.

Developed international stocks experienced even steeper declines, with the MSCI EAFE Index falling 6.62% as geopolitical risks weighed heavily on global markets. Energy markets were a major driver of volatility, with oil prices surging sharply and contributing to wider risk-off sentiment.

Middle East Conflict Drives Market Volatility

Markets opened the week under pressure following news of military action in the Middle East. Initial selling was relatively brief, however, as investors stepped in to buy the early dip. By the end of Monday’s session, most major indexes had recovered much of their intraday losses.

Volatility persisted on Tuesday as investors weighed the possibility of a prolonged conflict. Afternoon comments from the White House indicating plans to provide risk insurance and naval escorts for oil tankers and other commercial vessels traveling through the Persian Gulf helped calm markets and led to a partial recovery.

Optimism carried into Wednesday as technology stocks rebounded and oil prices stabilized. Stronger-than-expected private-sector hiring reported by ADP also helped support sentiment. By the close, both the S&P 500 and Nasdaq had briefly moved into positive territory for the week.

Oil Prices Add a New Layer of Risk

The market tone shifted later in the week as concerns about a widening conflict resurfaced. Stocks opened lower on Friday after the Bureau of Labor Statistics reported that the economy unexpectedly lost 92,000 jobs last month.

Energy markets became a focal point. U.S. crude oil prices surged 36% for the week, marking the largest weekly increase since 1983. The conflict significantly disrupted tanker traffic through the Strait of Hormuz, one of the world’s most important energy shipping routes.

In addition to supply concerns, investors began evaluating how heightened geopolitical risks could affect shipping insurance rates and energy supply chains in the coming weeks.

This Week: Key Economic Data

Tuesday
NFIB Small Business Optimism Index
Existing Home Sales

Wednesday
Consumer Price Index (CPI)
Federal Budget

Thursday
Weekly Jobless Claims
Trade Deficit
Housing Starts
Building Permits

Friday
Gross Domestic Product (Q4, first revision)
Personal Consumption Expenditures Index* (January)
Durable Goods* (January)
Job Openings* (January)
Consumer Sentiment

This Week: Companies Reporting Earnings

Tuesday
Oracle Corporation (ORCL)

Thursday
Adobe Inc. (ADBE)
Wheaton Precious Metals Corp. (WPM)

It can be measured despite lacking length, width, or height. What is it?

All about but unseen, can be captured but can’t be held, has no throat but can be heard. What is it?

Answer: The wind.

Footnotes And Sources

1. WSJ.com, March 6, 2026
2. Investing.com, March 6, 2026
3. CNBC.com, March 2, 2026
4. CNBC.com, March 3, 2026
5. CNBC.com, March 4, 2026
6. WSJ.com, March 5, 2026
7. WSJ.com, March 6, 2026
8. CNBC.com, March 6, 2026
9. Investors Business Daily - Econoday economic calendar: March 6, 2026.
10. Zacks, March 6, 2026

This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with Bethesda Wealth Planning Group.

Weekly: Geopolitical Tensions and Oil Shock Weigh on Markets