Market Summary - March 04, 2026

Mid-Morning Look

On March 4, 2026, U.S. stocks showed strength after a decline the previous day, buoyed by positive economic data and potential diplomatic progress regarding the U.S.-Israel conflict with Iran. The DJ Industrials rose by 275.94 points (0.57%) to 48,777, the S&P 500 increased by 50.91 points (0.75%) to 6,867, the Nasdaq climbed 317.39 points (1.41%) to 22,834, and the Russell 2000 gained 19.71 points (0.76%) to 2,628.

Geopolitical Context

Investor sentiment improved following a report from the New York Times indicating that Iran had made a secret offer to negotiate an end to the ongoing conflict with the U.S. The proposed terms included Iran curtailing its ballistic missile and nuclear programs and reducing support for proxy groups, with the possibility of U.S. President Donald Trump allowing Iran's current leadership to remain in power. Although Iranian media denied these reports, U.S. markets reacted positively, particularly in sectors affected by the conflict.

Asian Market Performance

In contrast, Asian markets faced significant declines, with the Korean KOSPI index experiencing its worst two-day drop since the Financial Crisis, plummeting 12% on March 4 after a 7.2% drop the previous day. The Nikkei Index fell by 2,033 points (3.61%) to 54,245, the Shanghai Index decreased by 40 points to 4,082, and the Hang Seng Index dropped by 518 points (2%) to 25,249.

Economic Data Highlights

• ADP National employment report indicated an increase of 63,000 private sector jobs in February, surpassing expectations of 50,000.
• ISM Services PMI for February was reported at 56.1, above the consensus of 53.5, indicating continued expansion in the non-manufacturing sector.
• Business activity index rose to 59.9, new orders index to 58.6, and employment index to 51.8, all showing positive trends.

Market Movements

Sector Movers

In the chemicals sector, DOW and LYB were upgraded to Overweight, while AVNT was downgraded. In utilities, SO was upgraded to Sector Weight, and SRE was upgraded to Buy.

Stock Gainers

• BGS +20%: Strong earnings results.
• BW +19%: Secured a $2.4B agreement for new generation capacity.
• CANF +94%: Positive results from a cancer drug trial.
• COIN +5%: Benefited from Bitcoin's rise above $71,000.
• MRNA +6%: Settled patent claims with Roivant.

Stock Laggards

• ANF -7%: Weaker Q1 outlook despite beating Q4 EPS.
• GTLB -9%: Flagged North American softness.
• INDI -19%: Announced a private offering of convertible bonds.
• MDB -2%: Results weighed on shares.
• WBTN -6%: Missed revenue expectations for Q4.

Conclusion

The U.S. stock market showed resilience amid geopolitical tensions and positive economic indicators, while Asian markets faced significant challenges. Investors are closely monitoring developments in the Iran conflict and their potential impact on global markets.