[New York Stock Exchange] All Three Major Indices Plunge on Signs of Expanding Iran War... Dow Down 2.28%, Gold Price Drops

Interest Rate Pause Expected to Last amid Oil Price Surge
Gold Drops More Than 5% on Inflation Fears
LNG Prices Soar after Qatar Attacks
All Three Major Indexes Fall... Even Tech Stocks Slide

On March 3 (local time), all three major U.S. stock indices opened lower and continued to decline amid signs of an expanding war in Iran. As rising oil prices heightened concerns over inflation, expectations grew that the Federal Reserve would keep its key interest rate unchanged, which in turn drove gold prices down.

At 10:05 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was down 113.67 points (-2.28%) at 47,791.11. The S&P 500 index, which focuses on large-cap stocks, was down 150.22 points (-2.18%) at 6,731.40, while the tech-heavy Nasdaq index fell 504.65 points (-2.21%) to 22,244.21.

The U.S. stock market appears to be shaken by concerns over a prolonged war. After the United States and Israel launched a military operation against Iran and Iran responded by attacking U.S. military bases throughout the Middle East, President Donald Trump mentioned the possibility of deploying ground troops. As a result, there are growing expectations that the conflict could turn into a long-term war.

In particular, investor sentiment was dampened as the Iranian Revolutionary Guard closed the Strait of Hormuz late in the previous session and warned that it would set fire to any ship attempting to pass through the strait, which led to a rise in oil prices and heightened inflation fears.

As of 10:10 a.m., the price of West Texas Intermediate (WTI) crude oil for April 2026 delivery was up 7.58% from the previous session at $76.63 per barrel.

Adam Crisafulli of Vital Knowledge said in a report, "While the market was relatively calm about the Middle East war on Monday, anxiety surged overnight," adding, "Concerns are growing that the Iranian government and military, which have lost their leader, will launch long-term retaliatory attacks over the next several weeks, targeting major economies and energy infrastructure across the region and causing widespread chaos."

Market observers point out that the surge in natural gas prices is a bigger concern than the rise in international oil prices, as Qatar's liquefied natural gas (LNG) production has been suspended due to Iran's attacks. Qatar's LNG market accounts for about one-fifth of the world's supply. As a result, European natural gas futures prices have soared by more than 70% in just two days.

Richard Pratt of Precision LNG Consulting commented, "This is unprecedented in LNG history," and added, "Because global LNG storage capacity is much smaller than for oil, a sharp increase in LNG spot prices is inevitable. There is no buffer in the LNG supply chain."

Defense and energy stocks, which closed higher the previous day, are also all trending downward. ExxonMobil is down 1.57%, Chevron 0.38%, Lockheed Martin 1.99%, and Northrop Grumman 1.45%, all giving up previous gains.

Aerospace stocks are falling for the second consecutive trading day as the number of canceled flights has reached 12,000. Delta is down 3.45%, American Airlines 4.44%, and United Airlines 4.45%, all posting significant declines.

Technology stocks, which helped defend the indices from declines the previous day, are also falling across the board. Nvidia is down 2.37%, Apple 0.33%, Microsoft (MS) 1.11%, Amazon.com 2.55%, Alphabet A 2.67%, and Meta 1.74%, all showing marked losses.

CNBC reported, "U.S. memory-related stocks are also under pressure and are expected to follow the sharp declines seen in Korean memory chip stocks."

The price of gold, a safe-haven asset, is also declining on inflation fears due to rising oil prices. On this day, the spot price of gold fell 5.3% from the previous session to $5,034.22 per ounce. This comes as expectations grow that the Federal Reserve will keep its key interest rate unchanged for an extended period. Generally, interest rate hikes put downward pressure on gold prices.

This content was produced with the assistance of AI translation services.