US Equity Indexes Mixed, Treasury Yields Surge as Iran War Continues

04:54 PM EST, 03/02/2026 (MT Newswires) -- US equity indexes closed mixed, government bond yields jumped, and volatility retreated on Monday as the US and Israel continued their hostilities against Iran.

The Nasdaq Composite rose 0.4% to 22,748.86, clawing back earlier declines. The Dow Jones Industrial Average fell 0.2% to 48,904.78. The S&P 500 was little changed at 6,881.62.

Energy and technology were among the gainers, while consumer staples and consumer discretionary led the decliners.

"Futures markets overreacted to the Iranian conflict, creating an opportunity to buy the S&P 500 as it neared its 2026 lows," Jeff Kilburg, CEO of KKM Financial, who posted Sunday night that the market would turn green before the close Monday, told CNBC. "We remain in a bull market despite escalating geopolitical tensions."

The CBOE Volatility Index advanced 8% to 21.44, retreating from its intraday high of 25.24.

US Treasury yields rose, with the two-year up 9.4 basis points to 3.47%. The 10-year yield jumped 7.4 basis points to 4.04%.

In precious metals, gold futures rose 1.9% to $5,348.3 per troy ounce, while silver futures slumped 3.5% to $90.0 per troy ounce.

The Middle East conflict entered its third day on Monday. President Donald Trump said, during a Medal of Honor ceremony on Monday, that Iran had ignored US warnings to abandon efforts to rebuild after the US-Israeli forces struck Tehran's nuclear infrastructure last June.

An Iranian Revolutionary Guard commander said the Strait of Hormuz has been closed, Reuters cited Iranian media in a news report.

In energy markets, West Texas Intermediate crude oil futures jumped 6.7% to $71.51 a barrel, off session highs.

The ICE US Dollar Index, which measures the strength of the greenback against a basket of the world's major currencies, was up 1% to 98.54.

In economic news, the Institute for Supply Management's US manufacturing index declined to 52.4 in February from 52.6 in January, versus expectations for 51.5 in a Bloomberg-compiled survey.

The S&P Global US manufacturing index for February was revised slightly higher to 51.6 from the flash reading of 51.2, compared with expectations for a smaller upward revision to 51.4 in a Bloomberg survey. The February index remains below the 52.4 reading in January.

In company news, BlackRock's (BLK) Global Infrastructure Partners and EQT Infrastructure VI fund are leading a consortium that has entered into a definitive agreement to acquire AES (AES) for $15 per share in cash, or an equity value of $10.7 billion and an enterprise value of about $33.4 billion including the assumption of existing debt, the companies said Monday.

Shares of AES (AES) slumped 18%, the worst performer on the S&P 500.

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