The tech-heavy Nasdaq Composite plunged on March 2, 2026, as escalating conflict in the Middle East following U.S. and Israeli military strikes on Iran triggered a broad retreat from risk assets, sending oil prices surging and amplifying fears of persistent inflation.

The Nasdaq Composite (^IXIC) fell sharply in early trading, dropping around 0.7% to 0.8% intraday, with levels hovering near 22,500 after closing at 22,668.21 on February 27 — down 210 points or 0.92% for that session. The index has now shed ground in recent sessions, reflecting pressure on growth-oriented tech stocks sensitive to higher interest rate expectations and energy cost spikes.

Broader markets joined the decline amid the geopolitical shockwaves. The Dow Jones Industrial Average (^DJI) slumped over 1%, shedding more than 500 points in prior close and continuing losses into Monday, while the S&P 500 (^GSPC) dropped roughly 0.8% to 1% near the 6,800 level. Trading volume remained elevated as investors shifted toward safe havens like gold — which climbed past $5,400 per ounce — and the U.S. dollar strengthened.

The catalyst was a series of military actions over the weekend. U.S. and Israeli forces conducted strikes on Iranian targets, prompting retaliatory attacks from Iran that heightened concerns about prolonged regional instability. Brent crude oil jumped above $82 per barrel, while West Texas Intermediate surged toward $73, marking sharp intraday gains of around 13% at one point. Higher energy costs raised the specter of renewed inflationary pressures, potentially delaying anticipated Federal Reserve rate cuts and pressuring equities further.

Tech giants, which dominate the Nasdaq’s weighting, bore much of the brunt. Shares of Nvidia (NVDA), Tesla (TSLA), Amazon (AMZN) and Apple (AAPL) traded lower, with some names down more than 1% to 3% in early action. The sector’s vulnerability stems from its reliance on low borrowing costs for growth; rising yields and inflation fears erode valuations for high-multiple stocks.

“This is a classic risk-off move,” said one market strategist in a client note. “Geopolitical escalation combined with oil’s spike is forcing a reassessment of Fed policy timing. If crude stays elevated, it could complicate the soft-landing narrative that has supported stocks this year.”

The Nasdaq has struggled in early 2026 after a strong prior period. February marked its worst monthly performance since March of the previous year, with the index down roughly 2.5% year-to-date in some reports, contrasting with the more resilient Dow Jones, up about 1.9% amid rotation into less tech-dependent names. The S&P 500 has shown modest gains of around 0.5% for the year so far.

Despite the pullback, some analysts remain cautiously optimistic on longer-term prospects. Individual investor sentiment stays bullish, with nearly 70% expecting stock market gains in 2026 according to recent surveys, even as half cite recession risks. The market’s resilience has been tested multiple times this year, including repeated challenges around the S&P 500’s 6,800 level.

Energy and defense stocks provided a counterpoint, rallying on bets of sustained higher oil prices and increased military spending. Sectors like traditional energy producers saw sharp gains, while airlines and consumer discretionary names faced headwinds from rising fuel costs.

Looking ahead, investors are monitoring upcoming economic data, including any inflation readings that could reinforce or ease Fed policy concerns. The VIX, Wall Street’s fear gauge, spiked notably in recent sessions, signaling heightened volatility.

The Nasdaq’s performance reflects broader themes in 2026: a tug-of-war between AI-driven growth optimism and macroeconomic uncertainties. While the index remains well above multi-year lows, its recent retreat underscores sensitivity to external shocks.

Market participants will watch for signs of de-escalation in the Middle East, which could stabilize energy markets and support a rebound in risk assets. Until then, caution prevails as traders navigate the intersection of geopolitics, commodities and monetary policy.

Unrest in the Middle East is crippling global air travel and disrupting flight schedules for many carriers, leaving passengers stranded at airports abroad.

Airlines across the world canceled flights after Israel and the U.S. launched a joint attack on Iran as part of Operation Epic Fury.

Emirates temporarily suspended operations to and from Dubai due to the unrest in the region. It said it will resume operations of a “limited number” later on Monday and will prioritize customers with earlier bookings.

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Etihad said in a statement that all scheduled commercial flights to and from Abu Dhabi remain suspended until 2 p.m. UAE time on March 4. The carrier said that some “repositioning, cargo and repatriation flights may operate with UAE authorities and subject to strict operational and safety approvals.”

Emirates and Etihad Airways temporarily suspended operations to and from Dubai. (Johannes Christo/Reuters)

Both carriers urged passengers not to travel to the airport unless notified by the airline.

Mainline U.S. carriers with operations in the Middle East have canceled flights and issued travel waivers to customers.

American Airlines

The U.S. and Israel launched a joint attack on Iran as part of “Operation Epic Fury.” (Michael Nagle/Bloomberg via Getty Images)

American Airlines said passengers traveling to, through or from Abu Dhabi, UAE; Amman, Jordan; Bahrain, Bahrain; Doha, Qatar; Dubai, UAE; and Larnaca, Cyprus, are eligible to have change fees waived if they:

• Are traveling on an American Airlines flight
• Are booked in any fare class, including Basic Economy
• Bought a ticket by Feb. 27, 2026
• Are scheduled to travel Feb. 28, 2026 –March 15, 2026
• Can travel Feb. 28, 2026 – March 29, 2026
• Don’t change the origin or destination city
• Rebook in the same cabin or pay the difference
• Cancel the trip and request a refund

Delta Air Lines

Delta canceled flights to and from Tel Aviv due to unrest in the Middle East. (Patrick van Katwijk/Getty Images)

Delta Air Lines canceled flights from New York’s John F. Kennedy International Airport to Tel Aviv, Israel, through March 8, and from Tel Aviv to JFK through March 9. The carrier said customers affected by flight cancellations will receive notifications. Customers scheduled to travel from Feb. 28 to March 31 are able to reschedule travel or cancel their reservation.

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Customers who opt to cancel their reservation can receive a refund for the unflown portion of their ticket through Delta’s website, or the unused value of the ticket will be issued as an e-credit that can go toward a new ticket.

The fare difference will be waived for passengers who rebook travel on or before April 15, 2026, in the same cabin as originally booked. A fare difference may apply if the original booking class is not maintained in the rebooked itinerary. If travel occurs after April 15, 2026, the airline said the change fee will be waived but a difference in fare may apply.

United Airlines

United canceled service to Dubai and Tel Aviv through March 4 and March 6, respectively. (Tayfun Coskun/Anadolu Agency via Getty Images)

United Airlines canceled service from the U.S. to Dubai through March 4 and from the U.S. to Tel Aviv through March 6. The carrier issued two waiver notices related to unrest in the Middle East.

Customers who purchased tickets for flights to or from Dubai or Tel Aviv on or before Feb. 27, 2026 with original travel dates through March 7, 2026, are able to reschedule the trip and will not be charged wave fees or fare differences.

However, the new flight must be a United flight that departs between Feb. 28 and March 15. The airlines said tickets must be in the same cabin and between the same cities as originally booked.

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Change fees will be waived for customers who booked a new trip after Feb. 27, 2027, or to a different destination, though they may need to pay a fare difference. Travelers can receive a full refund if they cancel or don’t take the trip.  

The second notice covers Dubai and Tel Aviv as well as airports in Abu Dhabi, Beiruit, Lebanon, and Erbil, Iraq.

Customers who purchased tickets on or before Feb. 28, 2026 with original travel dates between March 8 and March 31, 2026, can reschedule without change fees or fare differences.

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The new flight must be a United flight that departs between March 1 and March 31, 2026. The airlines said tickets must be in the same cabin and between the same cities as originally booked.

Change fees will be waived for customers who booked a new trip after March 1, 2027, or to a different destination, though they may need to pay a fare difference.

McDonald’s is celebrating National Egg McMuffin Day with a limited-time deal for customers.

The fast-food giant is offering customers its classic breakfast sandwich or Sausage McMuffin with Egg for $1 on Monday during breakfast hours. In order to receive the deal, the McMuffin must be ordered through the McDonald’s mobile app.

The McMuffin traces its roots to Santa Barbara, California, in early 1971. McDonald’s owner/operator Herb Peterson developed the idea for the sandwich when a version of Eggs Benedict – particularly the Hollandaise sauce – didn’t make the cut. A slice of cheese replaced the sauce, and along with Canadian bacon, an egg and English muffin, the sandwich was created, according to McDonald’s.

McDonald’s Egg McMuffin sandwich was created in 1971. (McDonald’s Corp.)

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It entered test markets the following year and was served open-faced with honey or jam on a small tray. It cost 63 cents, equivalent to about $4.99 today.

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McDonald’s CEO Chris Kempczinski said during the company’s third-quarter earnings call in November that breakfast is typically the most “economically sensitive daypart” for the business.

“It’s an easy daypart to either skip the meal or to eat the meal at home,” he said. “Breakfast continues to be under pressure as a daypart industry-wide. We’re holding share in breakfast. So we’re doing okay in that segment, but we are still seeing that daypart is under pressure.”

McDonald’s has focused heavily on limited-time promotions and value meals to bring back customers. (Paul Weaver/SOPA Images/LightRocket)

McDonald’s has focused intently on limited-time promotions and value meals as a way to bring budget-conscious Americans back to its restaurants.

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The strategy appears to be working as U.S. sales rose 6.8% in the fourth quarter – the biggest jump in about two years – and lower-priced offers and aggressive promotions drove traffic back into restaurants. Analysts had expected a smaller 4.9% gain.

With Strait of Hormuz traffic nearly halted, China’s reliance on Iranian oil could trigger “real problems” within two months if the crisis continues, one expert warned.

Gatestone Institute senior fellow Gordon Chang joined FOX Business’ Maria Bartiromo on “Mornings with Maria” to assess how escalating tensions around the Strait of Hormuz could reverberate through China’s fragile, export-dependent economy.

OIL PRICES SURGE AFTER STRIKES KILL IRAN’S SUPREME LEADER, TANKERS HIT NEAR STRAIT OF HORMUZ

Oil tanker at a port in the Strait of Hormuz. (Giuseppe CacaceI/AFP via Getty Images)

Chang noted that a significant share of China’s discounted Iranian crude, vital for its independent “teapot” refiners, typically transits the narrow waterway, where ships are now largely stalled north and south of the Strait.

“Much of that oil… actually goes to China trying to get somewhere between… 15% and 23% of its seaborne oil from Iran, and that oil transits the Strait of Hormuz,” Chang said.

He added that while Beijing has diversified supplies, the loss of heavily discounted barrels comes at a vulnerable moment for factories dependent on cheaper energy.

“This will go through the system, and I suspect you will see real problems in about two months in China if this situation continues,” Chang said.

Hayman Capital Management founder and CEO Kyle Bass also joined FOX Business’ Maria Bartiromo to discuss market reaction and the broader energy shock rippling through global supply chains.

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Bass pointed to insurance withdrawals and the strategic weight of the choke point, warning that even a temporary disruption could send front-month crude prices sharply higher.

“About a third of the world’s seaborne crude flows through that strait every day. Fifty percent of China’s imports flow through that strait every day. And right now, things are not going through the strait,” Bass said.

“If 10 million barrels goes missing or gets delayed for a week, there’s no telling where the front end can go,” Bass added.

With insurers retreating, LNG shipments disrupted and tanker traffic effectively frozen, the crisis underscores how a five-mile-wide passage can shape the economic trajectory of the world’s second-largest economy.

“We’re at risk of a pretty major oil price spike here,” Bass said.

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