US stocks rebound after strong economic updates and as oil prices stop
spiking
[March 05, 2026] By
STAN CHOE
NEW YORK (AP) — The U.S. stock market rebounded Wednesday from two days
of punishing swings after oil prices stopped spiking and reports gave
encouraging updates on the economy.
The S&P 500 rose 0.8% and made back most of its losses since the war
with Iran began. The Dow Jones Industrial Average climbed 238 points, or
0.5%, and the Nasdaq composite climbed 1.3%.
The strength followed a scary start to Wednesday, when South Korea’s
Kospi stock index plunged 12.1% for its worst loss in history.
Uncertainty about the war has sent prices in financial markets careening
up and down this week, with most taking their cues from what the price
of oil is doing.
Oil prices moderated as trading moved westward from Asia to Europe and
across the Atlantic. After briefly topping $84, the price for a barrel
of Brent crude, the international standard, settled at $81.40, back to
where it was a day earlier. A barrel of benchmark U.S. crude rose 0.1%
to $74.66.
Stocks also got a boost from signs of strength for the U.S. economy.
One report said growth for U.S. businesses in the real estate, finance
and other services industries accelerated last month at the fastest pace
since the summer of 2022. Encouragingly for inflation, it also said
prices for such businesses are increasing at a slower rate, at least
before the war with Iran began.
A second report suggested U.S. employers outside of the government
picked up their hiring last month. That could be a hopeful signal for
the more comprehensive report coming Friday from the U.S. government
about the overall job market.
In financial markets, worries are centered on how long the war with Iran
could last, how high inflation will go because of more expensive oil and
how much corporate profits will sink because of it.
The U.S. stock market has a history of shaking off military conflicts in
the Middle East relatively quickly, though that comes with the caveat
that oil prices don’t jump too high. That has some professional
investors suggesting patience through the volatility, at least when it
comes to financial markets.
Not everyone is optimistic.
“I think the Iran situation is getting out of hand, and I think that
U.S. President Donald Trump miscalculated enormously,” said Francis Lun,
CEO of Venturesmart Asia. “The situation is very grim.”
On Wall Street, a mix of companies helped drive Wednesday’s rise.
Stocks enmeshed in the crypto industry climbed as bitcoin’s price
rebounded back above $73,000. Coinbase Global jumped 14.6%, and
Robinhood Markets rallied 8.1%.
Retailers and travel companies strengthened with hopes that a solid
economy and an easing for jumps in gasoline prices will mean their
customers may have more to spend.
[to top of second column] |
Financial information is displayed on the floor at the New York
Stock Exchange in New York, Wednesday, March 4, 2026. (AP Photo/Seth
Wenig)
 Ross Stores climbed 8% after
reporting better profit and revenue for the latest quarter than
analysts expected and saying it’s entering 2026 with “solid
momentum.” Expedia Group rose 3.1%.
Big Tech stocks, meanwhile, were the strongest forces lifting the
market. Amazon rose 3.9%, and Nvidia added 1.7%. Because they’re
among the biggest stocks in the U.S. market in terms of total value,
their movements carry more weight on the S&P 500.
All told, the S&P 500 rose 52.87 points to 6,869.50. The Dow Jones
Industrial Average climbed 238.14 to 48,739.41, and the Nasdaq
composite rallied 290.79 to 22,807.48.
In stock markets abroad, indexes rose in Europe following sharp
drops in Asia. France’s CAC 40 climbed 0.8%, and Germany’s DAX
returned 1.7%. That came after losses of 2% for Hong Kong’s Hang
Seng and 3.6% for Japan’s Nikkei 225, along with Seoul’s historic
plunge.
In the bond market, Treasury yields ticked higher after jumping
early in the week with worries about worsening inflation. The yield
on the 10-year Treasury rose to 4.09% from 4.06% late Tuesday.
Wednesday’s strong reports on the economy were welcome news for the
Federal Reserve, whose job it is to keep the U.S. job market healthy
and inflation low. The Fed’s job has become more difficult because
of the jump in oil prices, which is pushing upward on already high
inflation.
The Fed could keep interest rates high to keep a lid on inflation.
But high interest rates would also keep it more expensive for U.S.
households and companies to borrow money, grinding down on the
economy.
The central bank had indicated it planned to resume its cuts to
interest rates later this year, in hopes of giving a boost to the
job market and economy. Because of the war and higher oil prices,
traders have pushed their forecasts further into the summer for when
the Fed could begin cutting rates again.
___
AP Writers Matt Ott, Kim Tong-hyung and Elaine Kurtenbach
contributed.
All contents © copyright 2026 Associated Press. All rights reserved
 |
