Weekly Wrap: The Dow Lost 903 Points Friday, Oil Hit $90, and the Jobs Market Collapsed — Inside the Worst Week of 2026

Five Days That Changed the Market Narrative

The week of March 2-7, 2026 will be remembered as the week everything hit at once. The S&P 500 lost more than 2% for the week, closing at 6,734. The Dow shed nearly 3% — its worst weekly performance since October — finishing at 47,097 after a brutal 903-point drop on Friday alone. The Nasdaq fell more than 1.5%, and the Russell 2000 cratered to 2,525. What made this week different from ordinary sell-offs was the sheer number of simultaneous shocks: an escalating war with Iran, oil surging toward $100, a catastrophic jobs report, and the lingering overhang of new global tariffs. There was nowhere to hide except gold and Treasuries.

Monday and Tuesday: The Iran Aftershock

Markets opened Monday bracing for the worst after Operation Epic Fury over the weekend. The S&P 500 dropped as much as 2.5% intraday before staging a remarkable recovery to close nearly flat. The Dow lost just 0.1%, and the Nasdaq actually gained 0.4%. Investors initially treated the conflict as a buy-the-dip opportunity, betting on a quick resolution. Tuesday told a different story. As reports emerged of Iranian missile launches targeting US bases across the Gulf and disruptions to Strait of Hormuz shipping, the sell-off resumed. The S&P 500 fell 0.94% and the Dow shed over 1,200 points at its worst before recovering to close down 0.5%. Oil jumped from $72 to $81 in two sessions.

Wednesday: The Broadcom Bounce

Wednesday provided a brief reprieve. Broadcom reported blowout Q1 earnings after the bell Tuesday, with AI revenue doubling to $8.4 billion and guidance for $22 billion in Q2 revenue. The stock surged 5%, dragging the broader tech sector higher. The Nasdaq rallied 1.3%, the S&P 500 gained 0.78%, and the Dow added 238 points. Oil prices stabilized with Brent finishing unchanged at $81.40. For a moment, it felt like the market might hold. But the calm was temporary.

Thursday: Oil Explodes Higher

Thursday was the day oil broke out. Reports of Iranian fast-attack boats harassing commercial tankers near the Strait of Hormuz sent crude surging. WTI jumped 8.5% to settle at $81, while Brent climbed to $85.41. The Dow dropped nearly 800 points before cutting losses. NVIDIA fell further from its post-earnings peak, now down 14% from its February high as investors rotated out of high-multiple growth stocks. Energy stocks were the only green on the screen — ExxonMobil, Chevron, and ConocoPhillips all hit multi-month highs. Defense stocks continued their rally, with Lockheed Martin and Raytheon both up over 8% for the week.

Friday: The Jobs Report Knockout

Friday delivered the final blow. The February jobs report showed 92,000 jobs lost — against expectations of 60,000 gained. The Dow plunged 903 points. The S&P 500 fell 1.6% to 6,734, breaking below its December support level. The Nasdaq dropped 1.6% to 22,458. Oil continued surging, with WTI touching $90 intraday. Gold held firm near $5,278. The 10-year Treasury yield fell to 3.85% as investors piled into safe havens. The VIX spiked above 28.

What to Watch Next Week

Next week brings the February CPI report on Wednesday, which will be critical for Fed expectations. If inflation comes in hot — boosted by energy and tariff effects — the stagflation narrative will intensify and markets could test lower. If it comes in softer than expected, it could provide a relief rally. Beyond data, the Iran situation remains the dominant variable. Any sign of diplomatic engagement would trigger a sharp reversal in oil and a broad market bounce. Conversely, further escalation could push oil above $100 and send equities into correction territory. The S&P 500 is now 5.8% below its January all-time high. A move below 6,600 would officially constitute a correction. Keep your watchlists ready and your emotions in check.