QUOTES-US stocks sell off as Iran war concerns deepen
NEW YORK, March 3 (Reuters) - A selloff in US stocks deepened on Tuesday, as widening conflict in the Middle East drove energy prices higher and raised investor concern about inflation.
MARKET REACTION: The Dow Jones Industrial Average <.DJI> fell 721.62 points, or 1.47%, to 48,185.13, the S&P 500 <.SPX> fell 95.67 points, or 1.40%, to 6,785.40 and the Nasdaq Composite <.IXIC> fell 338.16 points, or 1.49%, to 22,412.21.
COMMENTS:
JOHN VELIS, AMERICAS MACRO STRATEGIST, BNY, NEW YORK:
“I think the explanation lies in the move higher in oil over the evening and morning today. Oil’s rallied because of the escalation to the region and the prospects for a longer campaign. This has pushed yields higher and stocks lower. Dollar higher on risk-off.”
JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VIRGINIA:
"Markets are acting rationally about the effects of higher energy prices on the global economy. Many worry that the inflationary impact will take away the lower interest rates the markets were counting on in 2026. The VIX seems to be topping out around the October high, which signals to me that investors are a little skeptical that energy prices will rise more from here."
EDWARD B. O’GORMAN, CHIEF EXECUTIVE OFFICER, RIVER WEALTH ADVISORS LLC, CAMP HILL, PENNSYLVANIA:
“Today is a golden opportunity for investors to reposition into our investment theme for 2026 of bet on the economy and go underweight tech. Today is a day that the market is showing some increased fear, which is usually a buying opportunity. We bought emerging markets today after the big selloff.
“We expect countries around the globe will collaborate and put a plan in place to stabilize the oil markets. The costs are too high if not."
CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANA:
“Today, the biggest issue that (investors) are trying to weigh gets back to the intertwining of inflation and interest rates.
“That’s the difference between today and yesterday. There seems to be some notion that perhaps (the Iran war) will persist longer than people thought 24 hours ago, because it’s spreading and starting to potentially impact energy infrastructure. Are energy prices going to remain elevated for a longer period of time than people thought yesterday and then does that pass through?”
