Mideast War Continues to Rage; Gold, Silver Battered on COMEX, Spot; Stocks Recover From Early Losses; Asia, Kospi Smacked Hard

With the Middle East in considerable turmoil, the ongoing war between the coalition of Israel and the United States against Iran seems to thus far be something of an even match. For every bombing or missile campaign initiated by the US side, Iran counters with strikes on Israel or US bases in Gulf countries. Claims by either side must be taken with skepticism, as the fog of war makes accurate assessments nearly impossible to verify.

With that in mind, US stocks defied gravity again on Monday, with all of the major averages hit hard early, but, once again recovering after suffering initial losses. It's interesting to note that while Asian and European bourses have suffered losses of 3-6% the past two days, US indices are only down moderately. For instance, the S&P 500 is only down 62 points from its close on Friday, February 27 through Tuesday's close, the loss less than one percent.

Overnight, Asian stocks were battered again, with Japan's NIKKEI down 2,033 points, or 3.6%. South Korea's Kospi down 18% over the past two days, and a full 12% on Tuesday. European stocks, on the other hand, are recovering after two days of steep losses and U.S. stock futures are modestly higher Wednesday morning an hour before the cash open. It appears as if the West is desirous of playing a "winning" narrative in light of developments in the Middle East. This is a common practice for the West. Some analysts joke that if London was nuked, the FTSE would probably rise three percent on the news. It's actually just a continuation of the sick stock manipulation played by Europe and the U.S., having an unlimited supply of fiat currency with which to influence markets.

The manipulative nature of markets can be seen best in precious metals futures on the COMEX and in the West-leaning spot markets. On Tuesday, gold and silver sold off dramatically, a move which runs counter to long-established patterns. People naturally rush to the security of gold and silver in times of geopolitical stress, not away from them. The futures and spot markets in the U.S. are completely out of control as alternate realities. While futures and spot register massive losses, physical metal is selling at much higher prices worldwide.

On Tuesday and into the overnight, spot silver was as low as $79.27. and gold was down to absurd levels at $5020. Both have recovered, with silver trading around $85 and gold at $5,190, though it traded above $5,400 on Tuesday.

Crude oil, however, is performing as expected, peaking above $77/barrel early Wednesday.

There were some earnings reports released Tuesday after the close...
Riot Platforms (RIOT) - 4Q loss, revenue miss, stock up 4.5% pre-market
Plug Power (PLUG) - was up 23% on Tuesday prior to earnings; beat, up 2% pre-market
Quantum Computing (QUBT) - down 10% Tuesday, earnings in line, rev. miss, up 2%
AST SpaceMobile (ASTS) - larger than expected loss, shares up 4%

...and Wednesday prior to the open:

Best Buy (BBY) - weak holiday sales, higher profit 4Q, flat
Target (TGT) - earnings in line, more turnaround promises, stock up 2%
Ross Stores (ROST) - strong 4Q, beats, shares up 6%
AutoZone (AZO) - earnings solid, shares up 9% pre-market

For what its worth, the retailers reporting Wednesday morning were relatively solid, indicating Americans still have money to spend.

The war will continue for at least another month, probably longer. Since the market refuses to reflect reality, trimming exposure with the bulk assigned to losers might be a worthwhile strategy.

At the Close, Tuesday, March 3, 2026:
Dow: 48,501.27, -403.51 (-0.83%)
NASDAQ: 22,516.69, -232.17 (-1.02%)
S&P 500: 6,816.63, -64.99 (-0.94%)
NYSE Composite: 22,998.23, -414.88 (-1.77%)