CNBC Business News Update - Market Close: Stocks Plunge And Partially Recover, President Trump Says US Navy Will Escort Oil Tankers, Target is Hiring 3/3/26

Episode Date: March 3, 2026

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I'm Jessica Eddinger, CNBC. Wall Street opens Wednesday morning after a plunge and partial recovery for the major stock averages on Tuesday after President Trump said the U.S. Navy would escort threatened oil tankers in the Middle East. The Dow fell 403 points, 8 tenths of a percent. That was a recovery. It had been down 1,200 points. The S&P 500 index lost 64 points, about a percent, and the NASDAQ, down 200. 32 points that was a little more than 1%. InVIDIA shares were down 1.3% on Tuesday.

Companies who shares at all-time highs on Tuesday. Oil names Chevron and Valero and defense names Northrop Grumman and RtX Raytheon. Defiance ETF's Sylvia Jablonsky tells CNBC, time to buckle up. You know, now I think it's going to be a day-by-day thing. I think it's going to be a lot of volatility before we know how long this is going to go on. Investors are reacting. Here's blank shine. Welts, Robert Schein on CNBC. Right now the market is absolutely selling off for good reason because of all of the

uncertainty that's building up and it's on the oil trade as well. U.S. crude oil on Tuesday up another 3% closing at $73 a barrel, but American drivers got hit Tuesday morning. When they went to fill up, prices at the pump had soared an average of 11 cents a gallon overnight, according to AAA. oil tankers are sitting at the Strait of Hormuz in the Middle East, not moving through after Iran threatened to attack ships. President Trump now saying the government will provide insurance for the tankers and use the U.S. Navy to escort them. Yeah, the administration finally seems to realize that they have a energy issue on their hands with the Iran conflict. You know, prices coming up when midterm elections are going to start up. What we've been hearing now is they're actually taking this really seriously.

having U.S. naval ships guard tankers that are traversing the straits-over moves, which is obviously a huge choke point for oil tanker and natural gas deliveries out of the Persian Gulf. That's Politico's Ben Lafave on CNBC. Here's Newberger and Bermann's Joe Amato on CNBC. Certainly a spike in oil prices will be inflationary to a certain extent, right? Every $10 increase in the price of oil is a 25 cent increase at the gas pump. So as it works through the system, the longer. that duration occurs, the higher inflation will be, but we think it will still be very modest.

You're already feeling higher prices at the pump, but how about if you didn't buy that spring break plane ticket before the U.S. attack to Iran? Are airfares now soaring because jet fuel just got more expensive? A spike in oil prices and fuel prices will get passed on to consumers. They're going to see it show up in their tickets, but it is unlikely to be immediate. It's something that can show up sometimes months down the line because airlines have already purchase their fuel at a set price. CNBC.com's Leslie Joseph's. Target shares.

Higher up 6%. The struggling retailer sees some progress on improving sales. And the new CEO, Michael Fidelke, spoke with CNBC's Sarah Eisen saying Target is hiring and raising pay. We're going to invest more payroll in the stores because we know we have to equip our teams to have the resources they need to deliver an incredible store.

You're going to be hiring more or paying more? Both. Both. On Wednesday's watch list, earnings are coming from Abercrombie and Fitch, Bath and Body Works, American Eagle Outfitters, and Jack Daniels maker Brown Foreman. The World Baseball Classic starts Wednesday night. Jessica Eddinger, CNBC. CNBC is the network for ambitious people.

Ambition. It's got America written all over it.