Weekly Stock Market Update | Dow, S&P 500, NASDAQ News – March 08, 2026

This week, the Dow Jones Industrial Average fell 3%, marking its worst week since April, while the S&P 500 plunged 2% and the Nasdaq Composite declined 1.2%. The global conflict between the US and Iran significantly affected the stock market, increasing oil prices and resulting in weaker than expected U.S. job data.

Oil prices hit their highest level since September 2023, with U.S. crude surging 12.2% to $90.90 per barrel and Brent crude gaining 8.5% to reach $92.69 per barrel. This occurred primarily as the conflict effectively halted oil flow through the Strait of Hormuz, disrupting oil producers in the region.

In wake of the war, Palantir stood out as its stock rallied 15%. The company, which provides software and services to the U.S. government, saw increased investment this week as elevated conflict indicated potential growth in government spending–a critical part of Palantir’s revenue.

Software stocks saw a rebound this week with the iShares Expanded Tech-Software Sector ETF surge of nearly 8%, and stocks such as CrowdStrike, ServiceNow, and AppLovin each rising more than 15%.

However, South Korean stocks experienced extreme volatility due to the war-induced energy supply concerns. The country’s top stocks in the memory sector, which are critical to the AI boom, are highly dependent on energy-intensive processes, making them vulnerable to the conflict. Though they had a strong rebound, the iShares MSCI South Korea ETF continued to report a 13% decrease this week.

Investors are reportedly bracing themselves for extended market volatility, with major concerns around energy inflation and a weaker job market, which could further impact Federal Reserve interest rate decisions.

The escalation of the Middle East war has resulted in U.S. crude oil posting its largest weekly gain in futures trading history, a 35% surge to close at $90.90 per barrel. This statistical record dates back to 1983. Global benchmark Brent gained nearly 28% for the week, its largest since April 2020, closing at $92.69 per barrel. The war has caused major disruptions to the global fuel supply, increasing fears of a protracted war that can destabilize the global oil and gas market. This has resulted in a standstill in traffic in the Strait of Hormuz, a critical route for energy supplies.

Despite the wider market undergoing turmoil due to the U.S.-Iran war, software stocks are showing signs of a rally, with the iShares Expanded Tech-Software Sector ETF (IGV) advancing almost 8%. Best performer among these is Microsoft, rising nearly 5%. The sector’s recent signs of life suggest that it may have bottomed out.

Gas prices have spiked following Trump’s decision to attack Iran. Brent Crude Oil prices breached $90 per barrel and have increased by almost 30% since the war. In the U.S., prices at the pump have increased from an average of $2.98 per gallon last week to $3.32 on Friday, according to the American Automobile Association (AAA). Trump and his team have taken a series of measures, which include a 30-day waiver to allow Russian oil to flow into India.

However, they have limited effect so far and the measures haven’t given any relief to the price jumps. The president is potentially under threat as rising gas prices could cause a backlash in the upcoming midterm elections.