Defense-linked software gains attention as markets stay volatile.
U.S. stocks closed lower Tuesday as markets remained volatile amid escalating tensions in the Middle East, though major indexes recovered well from steep intraday losses. The Dow Jones Industrial Average, S&P 500, and Nasdaq 100 finished down about 0.8%, 0.9%, and 1.1%, respectively, after trimming much deeper declines earlier in the session.
At one point, the Dow had fallen more than 1,250 points before rebounding as investors reassessed the potential economic impact of the conflict.
Sentiment improved after President Donald Trump said the U.S. Navy could escort oil tankers through the Strait of Hormuz if necessary, easing fears that energy supply disruptions could escalate further.
Even so, West Texas Intermediate crude still rose 3.6% to $73.80 per barrel, reflecting persistent geopolitical risk tied to the region.
Energy stocks including Exxon Mobil (XOM), Chevron (CVX), Marathon Petroleum (MPC), Occidental Petroleum (OXY), and Phillips 66 (PSX) finished mixed after rallying earlier in the week, while defense contractors such as Lockheed Martin (LMT), RTX (RTX), and Northrop Grumman (NOC) saw mild pullbacks after sharp gains.
One notable outlier was Palantir Technologies (PLTR), which added 1.4% after rising 5.8% the previous session. Roughly half of Palantir’s revenue comes from government contracts, and the renewed focus on defense and intelligence spending has helped push the stock up about 13% over the past four days.
Combined with strong recent earnings and projected revenue growth of around 73% over the next year, many analysts see the company as a potential beneficiary of both AI expansion and rising defense budgets, even as valuation remains a key debate among investors.
📊 Market Wrap
🧠 Analyst Notes
💬 Market Highlights
Best Buy Targets $41.2B–$42.1B Revenue for Fiscal 2027 as Marketplace and Ads Gain Traction
Best Buy (BBY) guided fiscal 2027 revenue of $41.2B–$42.1B with comparable sales ranging from down 1% to up 1% and adjusted EPS of $6.30–$6.60, following Q4 revenue of $13.8B and adjusted EPS of $2.61 with a 5% operating margin, as digital Marketplace and Best Buy Ads initiatives are expected to drive roughly 30 basis points of gross margin expansion, while management continues to navigate mixed macro conditions, memory cost pressures, promotional intensity, and softness in categories such as home theater and appliances, alongside plans to open six new domestic stores and return approximately $1.1B to shareholders.
Lithium Stocks Slide Led by Albemarle on Weaker Demand Outlook
Albemarle (ALB) led a broad selloff in lithium stocks after lithium carbonate futures in China dropped about 13% to 150,860 yuan per metric ton amid weaker demand expectations and escalating Middle East tensions, with shares of Lithium Argentina, Sigma Lithium , Mineral Resources, SQM, Lithium Americas, and Standard Lithium also declining sharply, as softer February EV sales from Chinese manufacturers including BYD, which reported over 40% year-over-year decline, reversed a recent rally that had been supported by Zimbabwe’s suspension of lithium concentrate exports.
Zscaler Initiated at Overweight by Wells Fargo
Zscaler (ZS) received an Overweight rating from Wells Fargo with a $200 price target, supported by its strong positioning in large enterprises where it has penetrated 45% of the Fortune 500 and 40% of the Global 2000, with analysts estimating new customer additions could contribute $300–$400M annually from roughly 700 new logos, while saturation concerns are viewed as overstated, and rising AI-driven data sovereignty concerns are accelerating demand for inline data loss prevention and enhanced Zero Trust AI architecture, reinforcing Zscaler’s role in expanding enterprise cybersecurity spending.
📅 Earnings Watch
As geopolitical tensions continue to shape energy markets and defense spending expectations, investors are watching whether volatility will keep driving rotation toward security-, energy-, and AI-linked companies in the near term.
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