The Dow Jones Industrial Average (^DJI) was down 73.14 (-0.15%) points today, closing at 48,904.78, while Dow Futures (YM=F) similarly fell 73.00 (-0.15%). Market sentiment was primarily dictated by a sharp escalation in geopolitical tensions following weekend military strikes by the U.S. and Israel against Iran. This conflict triggered a significant spike in crude oil prices, with West Texas Intermediate (WTI) climbing toward $72 per barrel, raising immediate concerns regarding energy-driven inflation and global supply chain stability.
Adding to the cautious atmosphere, the ISM Manufacturing PMI for February registered at 52.4%. While this marked the second consecutive month of expansion, the report highlighted a massive jump in the Prices Index to 70.5%, fueled by rising raw material costs and protectionist tariff policies. This inflationary signal, combined with the 10-year Treasury yield rising above 4.00%, placed immense pressure on interest-rate-sensitive sectors and safe-haven assets like Gold, which surged above $5,400 per ounce.
Despite the broader decline, Nvidia (NVDA) surged 2.86% to $182.37 and Microsoft (MSFT) gained 1.86% to $400.40 as investors rotated into high-growth AI leaders. Caterpillar (CAT) and Chevron (CVX) rose 1.25% and 1.24% respectively, benefiting from industrial resilience and soaring energy valuations. Conversely, the housing and retail sectors suffered; Home Depot (HD) fell 2.44% to $371.89 and Sherwin-Williams (SHW) dropped 2.41% as higher yields threatened mortgage affordability. Disney (DIS) also struggled, sliding 2.25% amid broader consumer discretionary weakness and rising fuel costs.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.