Palantir, Energy Stocks Rally as Cruise Lines Tumble on Iran War Tensions

Wall Street reversed overnight losses as investors shrugged off escalating Middle East tensions.

Mar. 2, 2026 at 1:23pm

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Wall Street traded firmly higher at midday on Monday, with the Nasdaq 100 gaining 0.3% and the S&P 500 rising 0.1%. Defense-linked names and energy stocks led the gains, while travel-related shares like cruise lines lagged. Palantir Technologies was the top performer in the S&P 500, climbing 6.5%. Oil prices rallied 5.1% to $70 per barrel, and the 10-year Treasury yield jumped 11 basis points to 4.07%.

Why it matters

The market's resilience in the face of heightened geopolitical tensions reflects investors' belief that the conflict with Iran will be contained and not significantly disrupt the broader economy. The divergent performance of different sectors highlights how investors are positioning for the potential impacts, with defense and energy benefiting from the tensions while travel-related stocks suffer.

The details

President Trump defended 'Operation Epic Fury' as a campaign to dismantle Iran's military and nuclear capabilities, signaling a four- to five-week timeline but warning the U.S. is prepared to stay engaged longer if necessary. The SPDR S&P Aerospace & Defense ETF climbed 2%, emerging as the top-performing industry group, while Palantir Technologies surged 6.5%. The energy sector gained about 1.3%, with Marathon Petroleum up 4.5%, as oil prices rallied. However, the U.S. Global Jets ETF, which tracks airline stocks, dropped 2.2%.

  • Wall Street trading took place on Monday, March 2, 2026.

The players

Donald Trump

The President of the United States who defended the 'Operation Epic Fury' campaign against Iran.

Palantir Technologies Inc.

A technology company whose stock surged 6.5%, emerging as the top performer in the S&P 500.

Marathon Petroleum Corp.

An energy company whose stock gained 4.5%, leading the energy sector higher.

U.S. Global Jets ETF

An exchange-traded fund that tracks airline stocks and dropped 2.2% amid the market tensions.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

The takeaway

The market's ability to shrug off geopolitical tensions and focus on the potential economic impacts of the conflict with Iran highlights the resilience of the U.S. economy and the adaptability of investors. However, the divergent performance of different sectors underscores the need for careful analysis and positioning to navigate the evolving landscape.