The S&P 500 fell 0.6%, with all sectors falling except energy, technology and consumer discretionary stocks — suggesting equity investors are seeing some opportunities amid the gloom. The possibility that the conflict doesn’t last long “remains the base case, and that the US is winning the battle. Higher oil prices raised the risk of another breakdown in stock-bond correlations, but bonds can still diversify equity risk, according to Morgan Stanley strategists including Serena Tang. Meanwhile, a global bond rout showed no respite, with Treasuries selling across the curve on concerns that higher oil prices will fuel inflationary pressures that could hinder the Federal Reserve’s ability to cut rates. “The stronger the better given the increase in inflation expectations due to energy prices,” the JPMorgan Market Intelligence desk led by Andrew Tyler said.

Source: The Edge Markets March 05, 2026 23:09 UTC