Wall Street closed mixed on Monday, pulled up by tech, defense and energy stocks. Investor mood was cautious and risk-aware, with traders reacting to heightened geopolitical tensions and market volatility but finding pockets of strength in the sectors mentioned above. Two of the three benchmark indexes ended in the green, while one finished in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) lost 0.2%, or 73.14 points, to close at 48,904.78. Eighteen components of the 30-stock index ended in negative territory, while 12 ended in the positive.
The tech-heavy Nasdaq Composite added 80.65 points, or 0.4%, to close at 22,748.86.
The S&P 500 gained 2.74 points, remaining virtually unchanged to close at 6,881.62. Seven of the 11 broad sectors of the benchmark index closed in the red. The Energy Select Sector SPDR (XLE), the Industrials Select Sector SPDR (XLI) and the Technology Select Sector SPDR (XLK) advanced 2%, 1% and 0.9%, respectively, while the Consumer Staples Select Sector SPDR (XLP) declined 1.4%. The fear gauge CBOE Volatility Index (VIX) increased 8% to 21.44.
Wall Street Sees Tech, Defense Strength Offset Broad Losses
Wall Street ended narrowly mixed on March 2 as advances in technology and defense shares helped counterbalance weakness across several other sectors. Investor sentiment was initially pressured by the Iran situation and concerns over potential energy supply disruptions, which fueled volatility and prompted cautious trading. Broader market softness reflected unease about global stability and its possible economic implications.
Despite this backdrop, technology stocks drew support from selective buying, particularly in companies tied to artificial intelligence and innovation themes. Defense and aerospace shares also gained as rising geopolitical risks strengthened expectations of sustained or increased military spending. These sector-specific gains limited the downside for major indexes, allowing the market to stabilize by the close even as uncertainty lingered.
Consequently, shares of NVIDIA Corporation NVDA and Northrop Grumman Corporation NOC added 3% and 6%, respectively. While NVDA carries a Zacks Rank #2 (Buy), NOC has a #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Energy Stocks Climb as Iran Conflict Sparks Supply Fears
On March 2, 2026, energy stocks outperformed much of the broader market as geopolitical tensions in the Middle East intensified following renewed military strikes on Iran. The prospect of disrupted crude oil flows through the Strait of Hormuz, a critical chokepoint for roughly one-fifth of global oil supplies, sparked a sharp rally in oil prices, which in turn lifted shares of energy producers and oil majors.
Brent crude and WTI crude surged, driving bullish sentiment in energy segments while investors rotated out of more interest-rate-sensitive and riskier sectors. WTI crude settled up 6.28%, ???or $4.21, at $71.23/barrel while Brent crude settled at $77.74/barrel, up 6.68%, or $4.87. Higher oil prices raised expectations of stronger earnings for producers and exploration companies, making energy equities a relatively safe haven amid the market’s broader risk-off environment. This surge in energy stocks also helped cushion overall market declines triggered by uncertainty and sell-offs elsewhere.
Economic Data
The Institute for Supply Management reported that Manufacturing PMI for February had come in at 52.4. The index for January remained unrevised at 52.6.
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Northrop Grumman Corporation (NOC): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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