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US stocks end choppy day on muted note as traders weigh war impactUS stocks closed flat as traders weighed Iran war risks, oil price spikes, and sector swings. S&P 500 gains in energy offset losses. Trump and Pete Hegseth addressed war duration concerns.By Bloomberg  March 3, 2026, 3:55:45 AM IST (Published)3 Min ReadUS stocks ended the day little changed, closing out a choppy trading session, as traders assessed the potential market impact from an escalating conflict in the Middle East that triggered a spike in oil prices.

The S&P 500 bounced back from earlier losses as gains in energy stocks helped offset declines in the consumer discretionary sector, leaving the gauge virtually unchanged on the day. The tech-heavy Nasdaq 100 Index and blue-chip Dow Jones Industrial Average were also little changed after earlier declines.

Indexes ending the day flat show investors are undervaluing the risks the Iran war poses to the market, especially given the emergence of other market hazards that have pressured stocks in recent weeks, said Matt Maley, chief market strategist at Miller Tabak + Co.

Also Read: ‘Escalation will come in waves’: Experts warn US-Israel's war on Iran may drag on

“The fact that the Iran war is taking place when concerns about the AI industry are rising and the stress in the credit markets is increasing as well, it tells me that investors are too complacent about today’s expensive stock market,” he said in an interview.

The Cboe Volatility Index, known as the fear gauge, climbed and “implied volatilities are up across asset classes following the US/Israeli strikes on Iran over the weekend,” said Mandy Xu, vice-president and head of derivatives markets intelligence at Cboe Global Markets.

US President Donald Trump delivered a White House briefing on the latest developments, in which he said the administration projected the war might last four to five weeks, or even longer than that. “Whatever the time is, it’s okay — whatever it takes,” he said.

Defense Secretary Pete Hegseth said Trump has the “latitude” to change the anticipated time frame of the war in Iran and also denied that it would morph into an endless war.

Also Read: US uses Anthropic AI in Iran strikes hours after Trump ordered ban, says report

A range of sectors saw big moves Monday morning, including sharp drops by airlines and cruise-ship operators — sensitive to fuel prices — and surges among defence names and oil producers.

"Typically sharp moves on geopolitics are not durable, and while today will likely be messy, we are inclined to think this move is more likely a tactical opportunity to buy than sell on the index level,” said Jonathan Krinsky, chief market technician at BTIG LLC.

Buying Opportunity?

JPMorgan strategists said the war is likely to lead to a risk-off move in the short-term but a buying opportunity in for investors with a three, six or 12-month time frame. Similarly, Morgan Stanley strategists said that oil prices would need to reach $100 a barrel to impact the bullish outlook for US equities over the next six to 12 months.

Mark Malek, chief investment officer at Muriel Siebert & Co., called the Strait “the 21-mile inflation machine" in a note to clients on Monday morning.

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Marathon Petroleum Corp. was one of the top-performing stocks in the S&P 500 as crude oil prices jumped, with tanker traffic all but halted through the Strait of Hormuz. An Iranian official said the country wouldn’t allow oil to leave the region.

“Geopolitical risk premia across markets had already risen in recent weeks amid a well-signalled military buildup,” said Darrell Cronk, chief investment officer for wealth and investment management at Wells Fargo.Continue Reading(Edited by : Jomy Jos Pullokaran)TagsDow Jones Industrial AverageUS Market