US Stocks Rebound After Economic Updates, Easing Oil Prices

S&P 500 erases losses since start of Iran conflict as reports show economic strength

Published on Mar. 4, 2026

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The U.S. stock market rebounded on Wednesday, with the S&P 500 rising 1% and erasing its losses since the start of the war with Iran. This came as oil prices moderated and reports showed encouraging signs for the U.S. economy, including accelerating growth in the services sector and stronger-than-expected hiring outside of government.

Why it matters

The volatility in financial markets this week has been largely driven by uncertainty around the ongoing conflict with Iran and the impact of higher oil prices on inflation and corporate profits. The rebound in stocks suggests investors see signs of economic resilience, but concerns remain about how long the Iran situation could last and its broader economic implications.

The details

The S&P 500 rose 1% on Wednesday, with the Dow Jones Industrial Average up 0.7% and the Nasdaq composite gaining 1.5%. Stocks were boosted by a report showing accelerating growth in the U.S. services sector, as well as signs of stronger-than-expected hiring outside of government. Oil prices also moderated, with Brent crude settling at $81.40 per barrel after briefly topping $84.

  • On Wednesday, South Korea's Kospi stock index plunged 12.1% for its worst loss in history.
  • On Wednesday, the price for a barrel of Brent crude oil settled at $81.40, back to where it was a day earlier.

The players

S&P 500

A stock market index that tracks the performance of 500 large-cap U.S. publicly traded companies.

Dow Jones Industrial Average

A stock market index that tracks 30 large publicly traded companies.

Nasdaq Composite

A stock market index that tracks the performance of over 3,000 stocks listed on the Nasdaq exchange.

Brent Crude

A major global benchmark for crude oil prices.

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What they’re saying

“I think the Iran situation is getting out of hand, and I think that U.S. President Donald Trump miscalculated enormously. The situation is very grim.”

— Francis Lun, CEO of Venturesmart Asia (wral.com)

The takeaway

While the stock market rebound provides some optimism, the ongoing conflict with Iran and its impact on oil prices and inflation remain significant concerns that could continue to roil financial markets in the coming weeks and months.