CNBC Business News Update - Market Midday: Stocks Lower But Off Earlier Lows, Middle East War Fears Spook Investors, Oil Spikes Higher 3/3/26

Episode Date: March 3, 2026

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored and reported by CNBC's Jessica Ettinger. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

I'm Jessica Eddinger. CNBC, investors worried the war in the Middle East will drag on longer than they thought. Investors watching the price of oil, which spike today. Markets are tanking, but off their earlier lows, the Dow down 685 points this afternoon. It had been down 1,200 points. It's down 1.4% Caterpillar shares leading it lower today. The S&P 500 index down 100 points. that's 1.4%. The NASDAQ down 364 points.

That's 1.6%. Checking shares of Invidia, they're down almost 2% this afternoon. Companies who shares hit fresh all-time highs on Tuesday, you can almost guess the names, oil companies, Chevron and Valero, plus defense names Northrop Grumman and RTX Raytheon. Here's Defiance ETF's Sylvia Jablonsky,

who tells CNBC to buckle up. 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. And investors are reacting. Here's Blank Shine Wells, Robert Shine, 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 popped Tuesday, hovering around $76 a barrel. AAA says the national average for a gallon of regular hit $3.11 on Tuesday. It soared up about 11 cents overnight from Monday to Tuesday greeting drivers on Tuesday morning with substantially higher prices at gas stations.

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. Newberger and Berman's Joe Amato on CNBC. DWS groups, David Bianco, talked about the U.S. consumer and what they're facing with CNBC's Carl Kintanilla. What happens to the consumer mindset if retail gas goes to 340? Maybe a little bit more of your tax refund will go toward paying for gasoline prices.

But again, let's not overstate that. I do think gasoline prices will be higher for a period. We've got other things that may weigh on confidence like the housing market. I think consumers are a little bit cautious. but they will spend until there's really big hits to either the equity market, housing, or jobs. Target shares were higher on a down day for stocks. The chain sees some progress on improving sales. And the new CEO Michael Fidelke spoke with CNBC's Sarah Eisen, they're 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. right now. On Wednesday's watch list, earnings are coming from Abercrombie and Fitch, Bath and Body Works, Jack Daniels maker, Brown

Foreman, and American Eagle outfitters. The Fed releases its beige book on current economic conditions, and the World Baseball Classic starts Wednesday night. Jessica Eddinger, CNBC. Become a smarter investor with CNBC Pro, plus

exclusive live events. This is my first time at the stock exchange, and it's been awesome. To be on the floor, I just can't believe I'm here. Become a CNBC pro. Go to cnbc.com slash get pro now.