Wall Street Ends Modestly Lower as US-Iran Tensions Boost Crude Prices

Mixed economic data and geopolitical uncertainties weigh on markets

Published on Feb. 26, 2026

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Wall Street stocks posted modest losses on Thursday, following the example of their European counterparts. The mixed economic data, including a record-wide U.S. goods trade balance and a bigger-than-expected drop in initial jobless claims, as well as simmering tensions between the U.S. and Iran, kept uncertainties high and crude prices elevated.

Why it matters

The decline in U.S. stocks reflects the ongoing market volatility driven by a combination of economic data and geopolitical factors. Investors are closely watching the U.S.-Iran tensions and their potential impact on energy prices, as well as the broader economic indicators that could influence the Federal Reserve's monetary policy decisions.

The details

The U.S. goods trade balance hit its widest on record, while a bigger-than-expected drop in initial jobless claims provided some reassurance regarding the labor market's health. Sectors like financials and tech were among the biggest decliners, while utilities and energy led the gainers. Aerospace/defense shares outperformed the broader market, while travel-related industries like airlines, hotels, restaurants, and cruise lines posted steep declines.

  • The U.S. goods trade balance data was released on Thursday, February 19, 2026.
  • The initial jobless claims data was also released on Thursday, February 19, 2026.

The players

Wall Street

The U.S. stock market, which posted modest losses on Thursday.

United States

The world's largest economy, which saw its goods trade balance hit a record wide on Thursday.

Iran

A country that is in ongoing tensions with the United States, which contributed to the uncertainty in the markets.

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What’s next

Investors will be closely monitoring the upcoming economic data releases, including the U.S. Personal Consumption Expenditures, Advance Q4 GDP, and Flash PMI reports, as well as the potential developments in the U.S.-Iran tensions, which could further impact market sentiment and crude oil prices.

The takeaway

The mixed economic data and geopolitical uncertainties continue to weigh on the U.S. stock market, highlighting the ongoing volatility and the need for investors to closely monitor a range of factors that could influence the market's performance in the near term.