U.S. Markets Retreat Despite Afternoon Recovery

U.S. equity markets fell sharply on Tuesday, March 3, 2026, after reports of a U.S.-Israeli military operation in Iran prompted early-morning selling but staged an afternoon recovery. Major indexes closed down — Dow off 403.51 points, S&P 500 down 64.99, Nasdaq down 232.17 — as oil jumped nearly 7% and VIX spiked; investors now focus on ADP, ISM services, and Friday’s February nonfarm payrolls.