NEW YORK, March 10, 2026, 1:22 PM (EDT)
The Dow Jones Industrial Average rose on Tuesday, extending Wall Street’s rebound as oil prices broke lower and trimmed some of the inflation scare that had rattled stocks. LSEG data showed the Dow up 0.60% at 48,027.85 in New York trade, after a 0.50% rise on Monday.
That matters now because crude has become the market’s pressure point. The recent surge reignited stagflation fears — slow growth plus stubborn inflation — just as U.S. data showed payrolls fell by 92,000 in February and unemployment edged up to 4.4%, a mix that could box in the Federal Reserve.
The move was broad, if uneven. The S&P 500 rose 0.37% and the Nasdaq gained 0.62%, while the Cboe Volatility Index, often called Wall Street’s fear gauge because it tracks expected swings in stocks, fell 2.65 points to 22.86; tech led the advance, energy slipped with crude, and airline and cruise stocks remained under pressure.
Angelo Kourkafas, senior global investment strategist at Edward Jones, said investors were getting relief that “some of the worst-case scenarios may be avoided,” but he said trading would likely stay “headline-driven.” Michael Reynolds, vice president of investment strategy at Glenmede, had described the oil shock a day earlier as “out of left field.” Reuters
Oil was the hinge. By 1504 GMT, Brent crude was down 10.6% at $88.51 a barrel and U.S. WTI crude had fallen 11.2% to $84.16 after both contracts surged past $119 on Monday, as President Donald Trump said the war could end sooner than first thought and sources said Washington was considering easing oil sanctions on Russia.
But the relief trade sits on fragile ground. U.S. officials said strikes on Iran were intensifying, Tehran said it would not allow oil exports from the region if attacks continued, and Saudi Aramco warned of “catastrophic consequences” if disruption in the Strait of Hormuz, a key oil chokepoint, persists. Reuters
The next hard test comes Wednesday, when the Labor Department is due to release February consumer price index data at 8:30 a.m. Eastern. Traders have been pricing in a 25-basis-point, or quarter-point, rate cut around September, but higher energy costs have already stirred worries that the Fed could find it harder to ease.
Monday already showed how fast the mood can flip. The Dow finished up 0.50% after a steep early selloff, and CFRA strategist Sam Stovall said investors were looking for chances to “jump back into the equity markets” as prices swung on each headline; for now, the duration of the conflict and the pace at which oil shipments resume through Hormuz remain the big variables. Reuters
