US close: Stocks higher despite escalating Middle East conflict
By Iain Gilbert
Date: Wednesday 04 Mar 2026
(Sharecast News) - Major indices closed higher on Wednesday as stocks partially recovered from Tuesday's volatile session.
At the close, the Dow Jones Industrial Average was up 0.49% at 48,739.41, while the S&P 500 advanced 0.78% to 6,869.50 and the Nasdaq Composite saw out the session 1.29% firmer at 22,807.48.
The Dow closed 238.14 points higher on Wednesday, reclaiming some losses recorded in the previous session.
Stocks closed higher on Wednesday as geopolitical tensions in the Middle East eased slightly after Donald Trump said the US would provide risk insurance for all maritime trade through the Persian Gulf, a move aimed at getting tanker traffic moving through the Strait of Hormuz after the Iranian Revolutionary Guard threatened to block the route.
Trump's intervention comes as Israel launched another round of strikes on Tehran, with its defence minister vowing to "crush" Iran's capabilities, keeping markets on alert even as energy prices steadied. Brent crude pared earlier gains to trade up around 1.4% on Wednesday morning, while West Texas Intermediate rose roughly 0.9%.
Iran also dismissed a New York Times report on Wednesday claiming its intelligence operatives had signalled a willingness to open indirect talks with the US to end the conflict, calling the story baseless. Tasnim, the semi‑official news agency, cited a Ministry of Intelligence source describing the report as pure falsehood and psychological warfare. According to the New York Times, Iranian operatives had reached out to the CIA through another country's spy agency, a claim attributed to Middle Eastern and Western officials speaking anonymously.
Also in focus were comments from Treasury Secretary Scott Bessent, who said Donald Trump's plan to increase the global tariff to 15% from 10% will likely be implemented this week. Asked on CNBC's 'Squawk Box' when the increase would be implemented, Bessent said: "That's likely sometime this week." Bessent added that he believes the tariff will go back to the old rate "within five months".
Trump announced last month that he was planning to increase worldwide tariffs to a blanket 15%, after the Supreme Court struck down his reciprocal tariff regime.
Market participants were also zeroed in on February's ADP private payrolls report, which revealed US private‑sector employment rose 63,000 in February - the strongest monthly gain since July 2025 - after January's increase was revised down to 11,000. Education and health services led the gains with 58,000 new roles, while construction added 19,000. Offsetting this, professional and business services shed 30,000 jobs, manufacturing lost 5,000, and trade, transportation and utilities slipped by 1,000. Economists were expecting to see 48,000 jobs added last month.
Elsewhere on the macro front, US mortgage demand picked up last week as borrowing costs hovered near a four‑year low, according to the Mortgage Bankers Association, with total applications rising 11% from the previous week. Applications to refinance a mortgage jumped 14.3% and were up 109% on the year, reflecting a sharp drop in rates as the average contract rate for 30‑year fixed mortgages with conforming balances held at 6.09%, the lowest since 2022. Applications to purchase a home rose 6.1% for the week and 10% for the year.
On another note, S&P Global's services and composite PMIs both cooled in February, with both surveys pointing to the slowest expansion in ten months. The US services PMI slipped to 51.7 from 52.7 in January, revised down from the flash reading of 52.3 and missing market expectations for a print of 53 - signalling a softer rise in new business, held back by a drop in export orders as overseas clients grappled with uncertainty around retaliatory trade policies.
The composite PMI, which combines the manufacturing and services PMIs, also eased, falling to 51.9 from 53.0 in January and coming in below the preliminary estimate of 52.3. Growth was constrained by weaker output across both sectors, alongside a moderation in new business midway through the first quarter.
Finally, the Institute for Supply Management's services sector registered its strongest expansion in more than three years in February, with activity accelerating sharply across key components. The ISM services PMI rose to 56.1 in February from 53.8 in January, comfortably ahead of expectations for 53.5 and marking the fastest pace of growth since August 2022. The pickup was driven by a jump in business activity, which rose to 59.9 from 57.4, its highest reading since September 2024. New orders posted their sharpest rise in 17 months at 58.6 versus 53.1, while employment growth strengthened to 51.8, the quickest in a year.
In the corporate space, Abercrombie & Fitch traded higher in early action after the retailer posted fourth‑quarter numbers that topped Wall Street expectations. Adjusted earnings came in at $3.68 per share, ahead of the $3.58 expected, while revenues rose 5% year‑on‑year to $1.7bn, slightly above the $1.67bn consensus.
After the close, chipmaker Broadcom posted better-than-expected earnings and revenue growth and provided strong guidance for the current period as it continues to benefit from the AI boom.
Reporting by Iain Gilbert at Sharecast.com
Dow Jones - Risers
Intel Corp. (INTC) $45.80 7.13%
Dow Chemical Co. (DOW) $32.34 5.20%
Cisco Systems Inc. (CSCO) $80.87 3.18%
Microsoft Corp. (MSFT) $405.20 2.54%
International Business Machines Corporation (CDI) (IBM) $250.06 1.95%
3M Co. (MMM) $160.89 1.52%
Boeing Co. (BA) $227.31 1.42%
Caterpillar Inc. (CAT) $731.97 1.36%
American Express Co. (AXP) $311.21 1.10%
Unitedhealth Group Inc. (UNH) $291.96 0.95%
Dow Jones - Fallers
Coca-Cola Co. (KO) $78.10 -1.56%
Salesforce.Com Inc. (CRM) $193.08 -1.51%
Chevron Corp. (CVX) $186.03 -1.45%
Nike Inc. (NKE) $58.64 -1.26%
Procter & Gamble Co. (PG) $158.30 -0.89%
Johnson & Johnson (JNJ) $245.30 -0.59%
Apple Inc. (AAPL) $262.52 -0.37%
JP Morgan Chase & Co. (JPM) $299.39 -0.29%
Walt Disney Co. (DIS) $103.04 -0.25%
McDonald's Corp. (MCD) $331.74 -0.13%
S&P 500 - Risers
Ross Stores Inc. (ROST) $213.52 9.07%
Arista Networks Inc. (ANET) $134.83 8.21%
Seagate Technology Plc (STX) $386.32 7.97%
Intel Corp. (INTC) $45.80 7.13%
Akamai Technologies Inc. (AKAM) $102.98 7.04%
TripAdvisor Inc. (TRIP) $10.26 6.54%
LyondellBasell Industries (LYB) $61.92 6.37%
Expedia Group Inc. (EXPE) $221.73 6.31%
Advanced Micro Devices Inc. (AMD) $202.07 6.13%
Amazon.Com Inc. (AMZN) $215.60 5.77%
S&P 500 - Fallers
Brown Forman Corp. Class B (BF.B) $26.26 -6.65%
Royal Caribbean Cr (RCL) $287.21 -4.68%
Under Armour Inc. Class A (UAA) $6.82 -4.21%
Under Armour, Inc. (UA) $6.70 -3.87%
DENTSPLY Sirona Inc. (XRAY) $13.44 -3.83%
Rockwell Automation Inc. (ROK) $383.35 -3.80%
Rollins Inc. (ROL) $58.00 -3.61%
Darden Restaurants Inc. (DRI) $203.41 -3.41%
Microchip Technology Inc. (MCHP) $69.90 -3.18%
Clorox Co. (CLX) $117.43 -3.07%
Nasdaq 100 - Risers
Ross Stores Inc. (ROST) $213.52 9.07%
Qvc Group Inc Series A (QVCGA) $3.38 9.03%
Seagate Technology Plc (STX) $386.32 7.97%
Intel Corp. (INTC) $45.80 7.13%
Workday, Inc. (WDAY) $143.04 6.44%
Expedia Group Inc. (EXPE) $221.73 6.31%
Amazon.Com Inc. (AMZN) $215.60 5.77%
Western Digital Corp. (WDC) $261.30 4.80%
Intuit Inc. (INTU) $440.86 4.73%
Synopsys Inc. (SNPS) $430.98 4.66%
Nasdaq 100 - Fallers
DENTSPLY Sirona Inc. (XRAY) $13.44 -3.83%
Microchip Technology Inc. (MCHP) $69.90 -3.18%
Monster Beverage Corp (MNST) $78.61 -2.64%
Skyworks Solutions Inc. (SWKS) $56.28 -2.22%
Mondelez International Inc. (MDLZ) $58.69 -1.50%
Kraft Heinz Co. (KHC) $23.93 -1.42%
Texas Instruments Inc (TXN) $202.39 -0.90%
Illumina Inc. (ILMN) $128.97 -0.62%
Align Technology Inc. (ALGN) $182.16 -0.55%
Costco Wholesale Corp. (COST) $1,006.74 -0.45%
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