Market Analysis: Wall Street Unfazed by War
By Elior Manier - March 2, 2026
Market Overview
US stock benchmarks opened lower but have since rebounded significantly, indicating a resilient investor sentiment despite the onset of conflict in the Middle East. Initial declines of 1.50% across all major indices have been mitigated, with stocks now approaching unchanged levels, effectively filling the gaps created at the open.
Investor Sentiment and Recommendations
J.P. Morgan's recommendation to "buy the dips" has contributed to a more optimistic risk sentiment among investors. However, US Treasuries have seen a sell-off, with the 10-year yield rising above 4.00%, which is unexpected given the geopolitical tensions. Meanwhile, Bitcoin and other cryptocurrencies are experiencing significant gains.
Key Market Levels
As the week progresses, it is crucial to monitor market sentiment, especially considering the potential economic repercussions of the ongoing war. The Strait of Hormuz remains a focal point, as any disruptions could further impact market dynamics.
Technical Analysis of Major Indices
Dow Jones
The Dow Jones has rebounded from its overnight lows of 48,103 and is currently testing significant resistance levels at 48,925 (50-Hour MA). A close above this level could indicate a continuation of buy-the-dip flows, while a rejection may lead to further downside.
Resistance Levels:
- 48,925 - Current rejection & Morning highs
- 49,270 - 200-Hour MA
- 49,500 to 49,700 - January ATH Resistance
- 50,000 - Range Highs
Support Levels:
- 48,660 to 48,740 - Past week Support
- 48,300 to 48,500 - Minor Support
- 48,103 - Overnight futures lows
Nasdaq
The Nasdaq has also shown resilience, breaching back above its 50-Hour MA. The key level to watch is 25,000, with potential for further dip-buying if this level holds.
Resistance Levels:
- 25,000 to 25,250 - Immediate rejection
- 25,400 to 25,500 - Intraday resistance
Support Levels:
- 24,744 - Mini-intraday support
- 24,441 - Overnight lows
S&P 500
The S&P 500 is facing similar conditions to the Dow, with a critical test at the 200-Hour MA (6,874). A close above this level could lead to a test of 7,000.
Resistance Levels:
- 6,874 - Morning highs and 200-Hour MA
- 6,880 to 6,900 - Key Pivot Zone
Support Levels:
- 6,830 to 6,850 - Mini-Support
- 6,760 - Overnight lows