Daily Market Update
War Fears Grip Markets: Asian Stocks Plunge, Oil Surges & Tech Under Pressure
04 March 2026
Today in Brief
Global markets were rattled by an escalating U.S.-Iran conflict now in its fifth day, triggering circuit breakers in South Korea, a sharp Wall Street sell-off, and a surge in oil prices as the Strait of Hormuz remained disrupted. Amid the turmoil, corporate earnings and strategic moves from Apple, CrowdStrike, and Pinterest offered pockets of resilience for investors.
South Korea's Kospi Plunges 12% Amid Broader Asian Declines as Iran Conflict Rages
South Korea's Kospi plunged over 12% on Wednesday before paring some losses, extending a steep sell-off from the previous session amid an escalating war in the Middle East. The Korea Exchange temporarily halted trading via a circuit breaker, while the Kosdaq also activated a halt after falling about 13%. The Kospi was last down about 8%, with heavyweights SK Hynix and Samsung Electronics falling more than 6% and over 9%, respectively. The South Korean market had been on a strong run, soaring more than 75% last year, with the Kospi hitting fresh highs on the back of semiconductor demand — making the reversal all the more sharp.
Dow Closes Down 400 Points After Falling as Much as 1,200 Points as Iran Conflict Volatility Continues
Stocks had another wild session on Tuesday as concerns around a prolonged U.S.-Iran conflict rattled markets, though comments from President Trump appeared to somewhat ease those fears. The Dow Jones Industrial Average lost 403.51 points (0.83%), closing at 48,501.27. The S&P 500 slipped 0.94% to 6,816.63, while the Nasdaq Composite shed 1.02% to settle at 22,516.69. At their intraday lows, the S&P 500 had lost 2.5% and the Nasdaq was down about 2.7%, with the Dow off more than 1,200 points. Trump said the U.S. Navy will escort tankers through the Strait of Hormuz, if necessary.
Gold Rises Back Above $5,170 Per Ounce as Investors Track Middle East Developments
Gold rose back above $5,170 per ounce on Wednesday, recovering some losses from the previous session as investors closely tracked developments in the Middle East. The U.S.-Israeli conflict with Iran entered its fifth day, with Israel striking a building where clerics were meeting to select a new Supreme Leader. President Trump voiced concern that the attacks could bring a new Iranian leadership as troubling as the previous regime, underscoring the conflict's uncertain trajectory. Trump also pledged naval escorts and insurance support for oil tankers and other vessels transiting the Strait of Hormuz to ease market fears.
WTI Crude Oil Rises to Around $75 Per Barrel, Extending Advance for a Fourth Session
WTI crude oil futures rose to around $75 per barrel on Wednesday, extending gains for a fourth consecutive session as the Iran crisis disrupted supply in the key producing region. Iraq cut output by about 1.5 million bpd — roughly half its production — due to storage limits and blocked exports, with the risk of halting nearly 3 million bpd if exports do not resume. Iran also targeted tankers in the Strait of Hormuz, a route for about 20% of global oil and LNG, leaving traffic halted for a fourth day. Gains were partially capped as Trump pledged naval escorts to maintain energy and trade flow.
Trump Says U.S. to Offer Insurance for Gulf Shipping and Escort Tankers
The U.S.-Iran war entered its fourth day and continued spreading into the wider region, with the number of U.S. service members killed standing at six, according to U.S. Central Command. U.S. stocks traded sharply lower, while European and Asian markets also fell. Iran reportedly closed the Strait of Hormuz, warning it will target vessels attempting to transit the critical waterway. The conflict also compromised tech infrastructure in the region — Amazon Web Services reported multiple data centers knocked offline by drone attacks, adding a new dimension to the crisis beyond energy markets.
China's Factory Activity Slumps More Than Expected in February as Holiday Disrupts Production
China's factory activity faltered in February as manufacturers paused production to celebrate an extended Lunar New Year holiday. The official manufacturing PMI fell to 49.0, missing the forecast of 49.1 and marking a second straight month of contraction. The composite PMI, covering both manufacturing and services, dropped to 49.5 from 49.8 in January. The reading matched October and April 2025 levels, signalling persistent softness in industrial output and raising questions about the effectiveness of recent stimulus measures ahead of key policy meetings.
Banking and Payments Services Disrupted After Amazon UAE Data Centers Hit in Drone Strikes
Apps and digital services across the UAE reported widespread outages following drone strikes on Amazon Web Services data centers in the country. AWS confirmed that two facilities in the UAE and one in Bahrain were damaged and taken offline. Consumer apps including delivery and taxi platform Careem, and payments companies Alaan and Hubpay reported disruptions. Banking providers including ADCB and Emirates NBD, alongside enterprise software provider Snowflake, also reported service outages. Military bases, critical infrastructure, and oil and gas production facilities have been similarly targeted across the region.
Canada and India Move to Reset Ties as Trust in the U.S. Falters
India and Canada set aside past tensions this week to pledge closer ties during Prime Minister Mark Carney's visit to New Delhi, as U.S. and Israeli strikes on Iran escalated. The reset comes after the 2023 assassination of Sikh activist Hardeep Singh Nijjar in Canada caused a diplomatic rupture, including mutual expulsion of diplomats. Canada had accused Indian Home Affairs Minister Amit Shah of plotting against Sikh separatists on Canadian soil — an allegation India emphatically denies. Both Carney and Modi now have added motivation to strengthen bilateral ties as Trump reorders global trade and the U.S. wages war on Iran.
Apple Raises MacBook Prices Across the Board as M5 Chips and New Displays Signal AI-First Strategy
Apple on Tuesday launched new MacBook Pro and MacBook Air models powered by its latest M5 chips, alongside an updated Studio Display lineup — its biggest Mac refresh in more than a year. The push is designed to revive Mac demand and position more AI workloads on-device rather than in the cloud. The launch comes after Mac sales dropped nearly 7% to $8.39 billion during the holiday quarter, well short of analyst expectations of nearly $9 billion. Apple is particularly targeting users still on Intel-era or early M-series systems to upgrade.
CrowdStrike Forecasts Fiscal 2027 Revenue Above Estimates on Cybersecurity Tools Demand
CrowdStrike forecast fiscal 2027 revenue above Wall Street estimates, betting on resilient demand for its AI-powered cybersecurity solutions. Shares of cybersecurity companies had recently declined as investors assessed the potential impact of Anthropic's Claude Code Security tool, though some analysts said the concerns were overblown. CrowdStrike's shares closed 1.7% higher before slipping 0.8% in extended trading. The company is benefiting from rising enterprise cloud adoption and modernizing security needs amid a wave of high-profile cyberattacks hitting global companies.
Paramount Credit Ratings Downgraded by Fitch After Warner Bros. Deal
Fitch Ratings downgraded Paramount Skydance and Paramount Global to junk status following the company's proposed acquisition of Warner Bros. Discovery. Fitch analysts said they expect Paramount to carry materially elevated leverage after the deal closes, and placed the company on watch for a potential further downgrade pending final terms and financing structure. The merger will create a combined entity with net debt of approximately $79 billion. Paramount had $14 billion in outstanding debt at year-end 2025, including senior unsecured and junior subordinated obligations.
NextEra Expects to Add Up to 30 Gigawatts of Power for Data Centers by 2035
NextEra Energy, the largest U.S. electricity company, announced plans to build between 15 and 30 gigawatts of new generation capacity for U.S. data centers over the next nine years. Access to power remains the biggest impediment to Big Tech's AI expansion, which requires energy-intensive data centers. Thirty GW is enough to power approximately 22 million homes — more than all residences in California. Much of the new capacity is expected to come from natural gas; NextEra has a pipeline of more than 20 GW of gas-fired generation already in development.
Activist Investor Elliott Boosts Stake in Pinterest by $1 Billion
Pinterest announced that activist investor Elliott Investment Management will purchase fresh equity worth $1 billion, helping fund a new $3.5 billion share buyback — a vote of confidence for the image-sharing platform's efforts to navigate uncertain ad spending. The move would make Elliott the company's biggest shareholder, building on an existing 4.8% stake worth approximately $725 million. Pinterest shares jumped nearly 5% in early trading on Tuesday. The buyback represents nearly a third of Pinterest's market value, following a period in which the stock had fallen more than 32% year-to-date.
Zscaler Stock Initiated at Overweight by Wells Fargo on Platform Growth
Wells Fargo initiated coverage on Zscaler with an Overweight rating and a price target of $200.00, noting that recent concerns around Red Canary create a favourable entry point. The stock was trading at $148.58, near its 52-week low of $140.56. Wells Fargo cited stable core business and momentum in emerging areas including Zero Trust Exchange, data security, and AI to sustain 20% growth. The firm highlighted Zscaler's entrenched position, having captured 45% of the Fortune 500, 40% of the Global 2000, and 20% of enterprises with more than 2,000 employees.
